In an environment where nearly all trading is done electronically, it’s important to consider the added benefits of human judgement and flexibility that floor brokers may offer.
NYSE floor brokers offer potential improved pricing and block liquidity discovery through a physical marketplace, while also utilizing ultramodern technology and order management tools for automated, low-latency, anonymous executions. They may assist traders seeking to achieve higher fill rates in the opening and closing auctions and deliver opportunities for intraday liquidity sourcing.
Floor brokers receive orders directly to their handheld devices, using e-Quotes and algorithmic programs to achieve individual parity by matching every trade through the use of designated market makers and the NYSE Display Book. They receive d-Quotes on their handheld which gives them additional flexibility and nearly 15 more minutes to tweak orders at the end of the trading day.
NYSE floor brokers have access to our Algorithmic Management System (AMS), analytics, and multiple liquidity-sourcing, schedule-driven and dynamic algorithmic strategies configured specifically for their trading style. Already, 15 floor brokers have adopted the Clearpool AMS to facilitate their electronic trading. Additionally, NYSE floor brokers have access to two dedicated Clearpool product specialists located on the exchange floor who can help facilitate order flow and assist with setting up custom algorithm configurations for brokers and their clients.
We believe that floor brokers will play an increasingly important role as the New York Stock Exchange makes all U.S. securities available for trading on their floor by year-end. We are committed to partnering with our clients to help them efficiently source liquidity—with unparalleled visibility and control from strategy to execution. Contact your relationship manager to learn more.
To learn more about Clearpool’s Algorithms request a demo.