The New York Stock Exchange (NYSE) is recouping efforts against rival IEX, by revamping its NYSE MKT to include a speed bump.
NYSE MKT will become ‘NYSE American’ and the exchange will promote midpoint trading by introducing a 350-microsecond delay upon order entry, proprietary data and outbound routing.
The rebranded market has been described as “a first-of-its-kind exchange that brings the strengths of NYSE’s features, such as electronic DMMs with quoting obligations assigned to each NYSE American listed company.”
NYSE MKT offers trading in approximately 250 small-cap companies and was acquired by NYSE Euronext in 2008 for $260 million.
A regulatory filing revealed earlier this month NYSE MKT’s floor based trading would be closed, as it shifts onto NYSE’s Pillar technology platform.
The Pillar platform was implemented in January 2015 and was designed “to use a single specification for connecting to the equities and options markets operated by the exchange,” NYSE said.
NYSE also announced plans to extend floor-based trading to all US securities, including its rival Nasdaq’s listed symbols and all listed exchange-traded products.
Intercontinental Exchange - NYSE’s parent company - said the move represents plans to bring greater transparency and efficiency to the US equity markets.
“With the expansion, NYSE’s trading floor members will be able to offer their clients the benefit of parity in securities listed on other US equity exchanges,” NYSE explained.
Tom Farley, NYSE president, explained as the exchange moves through 2017 and begins making the changes, “NYSE Group will ultimately operate four distinct exchanges for issuers and investors, each with its own market model.”