The Workings Of The New York Stock Exchange Trading Floor
The New York Stock Exchange trading floor works in a different way to most other exchanges.
Stock trading is done via a floor based system that uses specialists. The New York Stock Exchange trading floor has seventeen trading posts and each stock is assigned to one of these posts. This means that trading in any one stock is centralised.
The specialists are assigned specific trading posts and therefore specific stocks. They act in a way that is deemed to maintain an 'orderly' market.
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Member firms brokers and local brokers all use these specialists for trades. A specialist will sit just outside their trading post as floor brokers move from post to post.
There is some international trading on the New York Stock Exchange trading floor. Mostly, this is carried out in stocks that are not US companies but maintain a listing to have access to US capital. These firms are mainly confined to ADRs or American Depository Receipts.
The primary order processing system to support equity trading is called SuperDot. This stands for: Super Designated Order Turnaround System. The system allows the NYSE to see the current status of any equity order. A member firm can input orders and these go straight to the trading post where the stock is traded.
After the order has been traded and completed, an execution report is returned to the member firm. The SuperDot system is believed to be able to process 7 billion shares per trading day.
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To read more about the New York stock exchange, please visit:
New York Stock Exchange
New York Stock Exchange History
New York Stock Exchange Dow Jones
New York Stock Exchange Seats
New York Stock Exchange Listing Rules
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