Thain, NYSE Inch Toward Automation
The
New York Stock Exchange
said its board agreed to remove some restrictions on automatic trading in an effort to reduce prices and increase flexibility for investors.
The board agreed to eliminate certain controls over the size and frequency of shares that investors can trade electronically. Specifically, it said it would eliminate the 30-second limitation for consecutive orders and the 1,099-share size limit for orders.
Those investors eligible to trade via NYSE Direct+ also would be able to place market orders, not just limit orders, the NYSE said. The proposal is expected to be filed with the
Securities and Exchange Commission
on Friday.
"Our commitment to create the best price for investors remains paramount," CEO John Thain said in a statement. "Today's initiative complements market-structure rules that ensure investors in NYSE-listed stocks receive best-price trade executions."
The move to expand electronic trading comes as specialists on the NYSE trading floor are under investigation for alleged trading violations.
Separately, the NYSE said it has appointed Amy Butte as executive vice president. Butte, who was formerly chief financial officer at Credit Suisse First Boston's financial services division, is expected to succeed Keith Helsby as chief financial officer upon his retirement. The exchange also has named David Shuler to the newly created position of chief of staff.