The New York Stock Exchange LLC has proposed a new Rule 1500 creating NYSE MatchPoint (MatchPoint). MatchPoint will be open for order entry between 3:30 A.M. to 4:45 P.M., New York City time. NYSE Members, member organizations and sponsored participants may enter orders in round lot amounts for securities listed on the NYSE, Amex, Nasdaq or a regional exchange. Orders will be designated to a specific MatchPoint matching system that operates in one minutes integrals at 9:45 A.M., 10:00 A.M., 11:00 A.M., 12:00 P.M, 1:00 P.M., 2:00 P.M., 3:00 P.M., and 4:45 P.M. The MatchPoint reference price for order execution during market hours is the midpoint of the national best bid and offer. The after hour matching session will use the closing price of the security’s primary trading market. In the case of a locked market the locked price will be the execution price. In the case of a crossed market the orders will not be executed. In the after hour session if the last sale price is 2% more or less than the closing price no orders will be executed.
In each matching session the aggregate buy orders and sell orders for a security will be determined and executed pro-rata, rounded down to the next round lot. Unexecuted orders or unexecuted parts of orders in a matching session will be returned to the entrant as unexecuted and may be entered in a subsequent matching session. Buy and sell orders entered in the same security by the same participant may, if so designated, offset each other before determination of the pro rata matching percentage. A participant may set minimum order execution for a matching session –e.g., no less than $50,000 in any share and may fix money limits -e.g., no buy or sell if the net difference is over a certain amount – e.g., one million dollars. NYSE will report all trades in a security in a matching session at one price for the total quantity matching. NYSE will compare executed trades and report them to the National Securities Clearing Corporation for clearance and settlement as well as to the entering parties. However, NYSE will not identify the counter-party in MatchTrade to the other side. Match Point is an anonymous trading facility.
MatchPoint rules set out procedures and requirements for non-member firms and others to become participants in MatchPoint. MatchPoint orders are entered using either an electronic Financial Information eXchange or an internet based password protected order entry application. http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-22782.pdf