NYSE Arca achieves sub-millisecond order execution

NYSE Arca, an electronic US equities exchange operated by global exchange group NYSE Euronext, has accelerated order execution following its migration to the group’s Universal Trading Platform.
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NYSE Arca, an electronic US equities exchange operated by global exchange group NYSE Euronext, has accelerated order execution following its migration to the group’s Universal Trading Platform.

According to NYSE Arca, market participants can now achieve roundtrip executions of 650 microseconds for Nasdaq-listed issues, and 950 microseconds for NYSE- and NYSE Arca-listed issues.

Previously, NYSE Arca customers were experiencing execution roundtrips of around a millisecond for Nasdaq-listed issues, and 1 to 1.3 milliseconds for NYSE- and NYSE Arca-listed issues. According to Nasdaq OMX, which operates the NYSE’s largest rival US equities trading platform, the Nasdaq Stock Market, 99% of orders are executed below 500 microseconds. Roundtrip execution measurements include the time taken by an exchange to accept, process, and acknowledge or fill an order.

Both NYSE and Nasdaq have invested heavily in technology to prevent further loss of market share to rivals such as BATS Trading and Direct Edge. NYSE commands just under 30% of US cash equities trading while Nasdaq claims slightly more than 20%. BATS and Direct Edge both have roughly 10% of the market.

NYSE Euronext’s Universal Trading Platform is a standardised group-wide system for order entry, order matching, market data distribution and other trading functionality.

NYSE Euronext’s European cash equities and bond trading, along with NYSE Arca Europe and SmartPool, the firm’s two pan-European multilateral trading facilities, have already migrated to the Universal Trading Platform. NYSE Arca’s migration is ongoing and the changeover is either underway or scheduled for the coming months for European warrants; NYSE Arca and NYSE Amex options; the New York Stock Exchange and NYSE Amex cash markets; and NYSE Liffe European derivatives.

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