DOW JONES NEWSWIRES
NYSE Euronext (NYX) said order-execution times have been slashed
20-fold at the New York Stock Exchange as it tries to regain market
share lost to competitors.
With the implementation of the new NYSE Super Display Book
system for processing orders, NYSE customers are seeing trades
executed within five milliseconds, compared with 105 milliseconds.
As recently as 2007 the time was 350 milliseconds.
The new system replaces the SuperDOT system, which for 33 years
handled order delivery and processing, and the Post Support system,
which routed orders to the trading floor.
Ever-faster order execution is a key factor for many traders,
especially as automated trading grabs an increasing amount of
overall trading volume.
The trading system revamp took three months to roll out and
completes a process begun 18 months ago. Since then, NYSE has
completely replaced its order entry, database and routing systems
as well as market-data systems and parts of its post-trade
system.
The NYSE and Nasdaq OMX Group Inc. (NDAQ) have seen their market
share of equity-trading volume fall in recent years as third
parties continue to build a following. The BATS Exchange, approved
last August, said Wednesday its market share rose in June to
10.7%.
-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354;
kevin.kingsbury@dowjones.com