Even though all of our markets are run electronically with cutting-edge, ultrafast technology, we maintain that nothing can replace human judgment and transparency. This human connection contributes to our strength by allowing for more orderly opens and closes, lower volatility, greater liquidity, and better prices. We’ve been committed to better, more orderly capital markets for more than 200 years. And we hope to continue the tradition for the next 200 years.
To keep markets orderly, the NYSE employs the following individuals on the floor:
Market Makers that have been designated
The Designated Market Maker is the core of the NYSE market model (DMM). DMM, formerly known as “Specialists,” is responsible for ensuring fair and orderly markets for the securities they are responsible for. During market openings, closings, and times of significant trading imbalances or volatility, they work both manually and electronically to promote price discovery. This “high touch” approach is important for raising costs, reducing uncertainty, increasing liquidity, and increasing value.
DMMs make trading decisions based on their knowledge of complex trading processes, macroeconomic news, and industry-specific information. The DMMs are a valuable resource for our group of publicly traded companies, including daily contact, capital commitments, market integrity, and stepping in during special circumstances.
Brokers who work on the floor
Employees of member firms who conduct trades on the exchange floor on behalf of the firm’s clients are known as floor brokers. In 2017, the nyse path at https://www.webull.com/quote/nyse-path had 205-floor brokers among its 152 member firms (85 electronic, 5 DMM, 45 brokerages). They serve as agents for the general public, buying and retailing stock on behalf of institutions, hedge funds, and broker/dealers.
During the NYSE’s opening and closing auctions and throughout the trading day, floor brokers actually exist on the trading level and are active contestants. They can also participate electronically, and they can access all markets and trade different asset classes to give clients a full image of their trading.
Providers of Extra Liquidity
Supplemental liquidity providers (SLPs) are high-volume electronic participants paid to add liquidity to the NYSE. While all NYSE stocks are available, not all of them have SLPs. Supplemental liquidity suppliers are mainly found in more liquid stocks with an average daily volume of more than one million shares. They must sustain a bid or offer in each allocated protection at the National Best Bid or Offer (NBBO) for at least 10% of the trading day.
Circuit Breakers for the Whole Market
If a significant share price downturn approaches levels that may exhaust market liquidity, the impartialities and choices relations have protocols in place for synchronized cross-market transaction halts. Market-wide circuit breakers (MWCB) are procedures that can temporarily interrupt trading or, in extreme cases, close markets before the usual close of the trading session. As measured by a single-day drop in the S& P 500 Index, MWCBs allow for cross-market trading halts during a significant market downturn. You can check other stocks like nasdaq ride at https://www.webull.com/quote/nasdaq-ride for trading.