NYSE Group Announces Pricing Changes for Equities and Options Trading.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- NYSE NYSE See: New York Stock Exchange Group, Inc. (NYSE: NYX Noun 1. Nyx - (Greek mythology) Greek goddess of the night; daughter of Chaos; counterpart of Roman Nox Greek mythology - the mythology of the ancient Greeks ): --New York Stock Exchange introduces simplified pricing model for customers who trade NYSE-listed cash equities
-- Increases transparency and efficiency; provides more
equitable pricing for customers; supports future product,
volume and trading platform growth; represents an initial
phase in transaction pricing changes.
--NYSE Arca Options revised options pricing reflects operating efficiencies gained in the PCX/Archipelago integration
-- Fee reductions will be realized; market maker fees will be
streamlined to encourage increased liquidity; advanced
market structure will result in expanded market making
opportunities.
NYSE Group, Inc. (NYSE: NYX) today announced a number of changes to transaction fees on New York Stock Exchange-listed equities and NYSE Arca For other uses of "ARCA", see ARCA. NYSE Arca, previously known as ArcaEx, an abbreviation of Archipelago Exchange, is an entirely online securities exchange on which both stocks and options are traded. Options, effective Aug. 1, 2006. New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. introduces pricing changes in trading NYSE-listed equities The New York Stock Exchange's new pricing schedule is in response to customers who have been seeking a simple, competitive, transparent and uniform pricing schedule for trading in NYSE-listed cash equities. The new fee schedule, which has been filed today with the Securities and Exchange Commission (SEC) and will be effective Aug. 1, 2006, includes the following changes: --Transaction fees on NYSE-listed equities will be based on a fixed rate of 0.00025 per share rather than the current variable fee schedule. --For NYSE-member firms, the monthly cap on trading NYSE-listed cash equities will be increased to $750,000 from $600,000. --The long-standing 2% commission cap for NYSE-listed trading on the New York Stock Exchange will be eliminated. --Free system orders on all NYSE-listed equities transactions will also be eliminated (fees for ETF ETF See Exchange Traded Fund. ETF See exchange-traded fund (ETF). system orders under 5,100 shares will continue to be waived). --Specialists will not incur transaction fees for trading ETFs. "Our new transaction pricing model, which is greatly simplified and more transparent, benefits our customers and reaffirms our commitment to remain the most competitive equities marketplace," said Catherine R. Kinney Catherine R. Kinney is the current President of the New York Stock Exchange. Mrs. Kinney joined the NYSE in 1974 and rose through the ranks, holding management positions in several divisions, including Technology Planning, Sales and Marketing, and Regulation. Mrs. , President and Co-Chief Operating Officer, NYSE Group. "This initiative represents our first significant price change in many years, serves as an effective platform to create uniform pricing along our current and future product lines, and allows the Exchange to grow as transaction volume grows." NYSE Arca transaction pricing for NYSE-listed securities remains unchanged. NYSE Arca Revises Option Trading Platform NYSE Arca's (formerly the Pacific Exchange) new pricing schedule for options precedes the introduction of its new options trading platform scheduled to be introduced this summer. The market structure, fees, and trading platform are subject to SEC approval. The new fee schedule, effective Aug. 1, 2006 includes the following changes: --Transaction fees for Market Makers will be reduced from $0.26 per contract to $0.16 per contract. --Transaction fees for Lead Market Makers will be reduced from $0.26 per contract to $0.09 per contract. --Transaction fees for Electronic Broker Dealer transactions will be reduced from a combined total of $0.51 to $0.50 per contract. --One Options Trading Permit (OTP (1) (One Time Programmable) Refers to programming content or logic into chips such as EPROMs and EEPROMs, which cannot be reversed. See antifuse. (2) (One Time P ) for Market Makers will be $4,000 per month per OTP. Each OTP will entitle market makers to quote in an expanded number of products of their choosing. Four Market Maker OTPs, totaling $16,000, will allow trading in all exchange products. --OTP firms acting as Lead Market Makers will be assessed a fee for LMM LMM light meromysin; produced by a digestion of myosin. Rights on a per issue basis in addition to the OTP Trade Participant Rights. LMMs Rights per issue will range from $150 to $3000 per month. --OTP rights for order entry firms will increase from $750 to $1,000 per month. --OTP Rights for Floor Brokers will be reduced from $1,500 to $1,000 per month. --The Cancellation fee will be phased out with the introduction of the new trading platform. --All application and surcharge fees will be eliminated. "This is clearly another example of first rate technology and the synergies realized through the Pacific Exchange integration providing new cost efficiencies for investors," said Jerry Putnam, President and Co-Chief Operating Officer, NYSE Group. "As the options marketplace continues to grow and evolve, it is critical that our market structure and leading technology platform reflect the future needs of the industry and shape its transformation." The rule revisions supporting changes to market structure were filed on May 2, 2006. The options trading platform, which will replace the PCX (1) A bitmapped graphics file format that handles monochrome, 2-bit, 4-bit, 8-bit and 24-bit color and uses RLE to achieve compression ratios of approximately 1.1:1 to 1.5:1. Images with large blocks of solid colors compress best under the RLE method. See PC Paintbrush. Plus trading system The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. , will offer significant improvements in trading system performance, functionality and reliability. The new trading system, which is being developed internally, is being created using components and processes currently in use by NYSE Arca's equity trading In finance, equity trading is the buying and selling of company stock shares. Shares in large publicly-traded companies are bought and sold through one of the major stock exchanges, such as the New York Stock Exchange, London Stock Exchange or Tokyo Stock Exchange, which serve as system and will integrate relevant functionality of the existing PCX Plus system. The NYSE Arca Options system is scheduled to be rolled out over a seven week phase-in period pending SEC approval. It includes functionality for the trading of options in penny increments in preparation for the SEC's recently announced penny pilot scheduled for implementation in January 2007. About NYSE Group, Inc. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the "NYSE") and NYSE Arca (formerly known as the Archipelago Archipelago (ärkĭpĕl`əgō) [Ital., from Gr.=chief sea], ancient name of the Aegean Sea, later applied to the numerous islands it contains. The word now designates any cluster of islands. Exchange, or ArcaEx(R), and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The NYSE is the world's largest and most liquid cash equities exchange. The NYSE provides a reliable, orderly, liquid and efficient marketplace where investors buy and sell listed companies' common stock and other securities. Our listed operating companies operating company A business that engages in transactions with outsiders. represent a total global market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. of over $22.9 trillion. In the first quarter 2006, on an average trading day In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. , over 1.7 billion shares, valued at over $65 billion, were traded on the NYSE. NYSE Arca operates the first open, all-electronic stock exchange in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and has a leading position in trading exchange-traded funds and exchange-listed securities. NYSE Arca is also an exchange for trading equity options. NYSE Arca's trading platform links traders to multiple U.S. market centers and provide customers with fast electronic execution and open, direct and anonymous market access. NYSE Arca Options (formerly the Pacific Exchange) is a subsidiary of NYSE Group, Inc. NYSE Regulation, an independent not-for-profit subsidiary, regulates member organizations through the enforcement of marketplace rules and federal securities laws. NYSE Regulation also ensures that companies listed on the NYSE and NYSE Arca meet their financial and corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. listing standards. For more information on NYSE Group, go to: www.nyse.com. Information contained on our website does not constitute an offering of our security. Cautionary Note Regarding Forward-Looking Statements Certain statements in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on NYSE Group's current expectations and involve risks and uncertainties that could cause NYSE Group's actual results to differ materially from those set forth in the statements. There can be no assurance that such expectations will prove to be correct. Actual results may differ materially from those expressed or implied in the forward-looking statements. Factors that could cause NYSE Group's results to differ materially from current expectations include, but are not limited to: NYSE Group's ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk and U.S. and global competition, and other factors detailed in NYSE Group's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and other periodic reports filed with the U.S. Securities and Exchange Commission. In addition, these statements are based on a number of assumptions that are subject to change. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by NYSE Group that the projections will prove to be correct. We undertake no obligation to release any revisions to any forward-looking statements. |
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