In an effort to provide investors an alternative way to execute
) was granted permission by the U.S. Securities and Exchange
Commission ("SEC") to introduce its innovative Retail Liquidity
Program ("RLP"). NYSE plans to kick start the first-of-its-kind
program early next month.
Despite the dissatisfaction expressed by many brokers in the
industry, SEC believes that RLP will promote healthy competition
across trading platforms. It is also in line with the regulatory
norms and is designed to benefit investors by offering them a
RLP will allow shares to be traded separately even before it is
available for trading on the New York Stock Exchange ("NYSE")
floor. This technology would allow sufficient cost savings and
ensure better pricing with respect to retail equity trading for
NYSE and NYSE MKT listed and NASDAQ UTP-traded equity
A couple of new market participants would be provided on NYSE
and NYSE MKT. Firstly, the RLPs are slated to provide price
improvements, even if its more or less by a penny, combined with
services delivered towards Retail Member Organizations that are
responsible for submitting Retail Orders to the Exchange.
With the introduction of RLP, NYSE will become the only U.S.
bourse to offer such technology, comfortably outpacing its closest
Nasdaq OMX Group Inc.
CME Group Inc.
NYSE continues to maintain a leadership position by developing a
market model in response to the emerging trends and technological
advancements in the trading environment. The company has initiated
several undertakings by expanding the suite of technology service
offering to its clients and aiding in a strategic shift of
companies from other exchanges to the NYSE trading platform and
also provided transparent pricing, useful trading information and
the ability to develop cutting-edge products in the future.
NYSE currently retains a Zacks #3 Rank, which translates into a
short-term Hold rating. However, we maintain a long-term
Underperform rating on the shares of the company.
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