Background of the stock exchange: NYSE
The New York Stock Exchange (NYSE) is a stock exchange located in New York City that is
the largest equities-based exchange in the world, based on the total market capitalization of
its listed securities.
Participants
We will first look at the participants of the NYSE. This unique market model combines
leading technology with human judgment to prioritiz
...[Show More]
Background of the stock exchange: NYSE
The New York Stock Exchange (NYSE) is a stock exchange located in New York City that is
the largest equities-based exchange in the world, based on the total market capitalization of
its listed securities.
Participants
We will first look at the participants of the NYSE. This unique market model combines
leading technology with human judgment to prioritize price discovery and stability over
speed for their listed companies.
The cornerstone of the NYSE market model is the Designated Market Maker who has
obligations to maintain fair and orderly markets for their assigned securities. They operate
both manually and electronically to facilitate price discovery during market opens, closes
and during periods of trading imbalances or instability. According to the NYSE, the
designated market maker provided 17% of liquidity trading in 2019
Floor brokers, on the other hand, are employees of member firms who execute trades on
the exchange floor on behalf of the firm's clients. They act as agents, buying and selling
stock for the public such as institutions, hedge funds, broker/dealers.
The last one that i want to mention is the supplemental liquidity providers who are required
to maintain a bid or offer at the National Best Bid or Offer in each assigned security at
least 10 percent of the trading day.
Instruments
Moving on to instruments, Products available for trading on ASX include shares, futures,
exchange traded options, warrants, contracts for difference, exchange-traded funds, unlisted
managed funds (mFund), exchange traded managed fund (ETMF), real estate investment trusts,
listed investment companies and interest rate securitie
The New York Stock Exchange operates seven liquid markets, providing investors with
access to stocks, bonds, exchange-traded funds and options. This includes four distinct
equities exchanges, each purpose-built to meet the needs of corporate and Exchange traded
fund issuers, and offer greater choice to investors in how they trade. This gives the investors
the flexibility to diversify their portfolio
Regulations
While in Australia, The Australian Securities and Investments Commission (ASIC) has
responsibility for the supervision of real-time trading on Australia's domestic licensed financial
markets and the supervision of the conduct by participants on those markets. The Reserve Bank
of Australia (RBA) has oversight of the ASX's clearing and settlement facilities for financial
system stability.
NYSE (2020). How the NYSE Market Model Works. Retrieved from
https://www.nyse.com/market-model?fbclid=IwAR1G8fS3UPMXll1Qpf5WqXEVE47qUN9K7qvijZtWGlMVAeBmS2EhZPEx-Sw
Hayes,A (2021). The NYSE and NASDAQ: How they work. Investopedia. Retrieved from
https://www.investopedia.com/articles/basics/03/103103.asp
Carty,S (2017). Who regulates the New York Stock exchange? Pocket Sense. Retrieved
form https://pocketsense.com/regulates-new-york-stock-exchange-7277239.html
NYSE (2020). Technology FAQ and Best Practice. Retrieved from
https://www.nyse.com/publicdocs/nyse/markets/nyse/NYSE_Group_Equities_Technology_FAQ.pdf?fbclid=IwAR2SSu16mtw6ZAK8ckywIIp70COOhcrODbng0x__OleQOmA_66MqXKAg_kw
ASX ( 2020, March 25). ASX to consult on CHESS replacement implementation
timetable. retrieved from
https://www.asx.com.au/documents/asx-news/asx-consults-on-timing-of-chess-replacement-project.pdf?fbclid=IwAR2RHNQHOzC8A20LG0GVtvby9dfEzRieDIKctCM9Zh8eIpxX
wxAjAQJ-kbM
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