Program trading increased last week on NYSE Euronext's (NYX) New
York Stock Exchange as total volume also rose in the wake of a
short-lived plunge in equities.
The daily program-trading volume average was 879.2 million
shares, or 23.5% of the average total volume of 3.74 billion
shares. The figures were up from 717.6 million shares, or 23.8% of
the average total volume of 3.02 billion the previous week.
Volume spiked at the end of last week, culminating in a
midafternoon swoon last Thursday that briefly left the Dow Jones
Industrial Average down almost 1,000 points on the day. The cause
of the tumble is still undetermined, though computer-driven trading
has been a popular suspect.
Program trading encompasses a wide range of portfolio-trading
strategies involving the purchase or sale of a basket of at least
15 stocks.
The most active NYSE member firm for program trading last week
was Morgan Stanley (MS), followed by Goldman Sachs Group Inc. (GS).
Wedbush Morgan Securities Inc. was next, followed by Barclays PLC
(BCS, BARC.LN).
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com