NYSE ARCA LAUNCHES NEW ORDER MODIFIERS

Posted July 10, 2009

NEW YORK – NYSE Arca, the all-electronic US equities exchange of NYSE Euronext, has launched four Self-Trade Prevention (STP) modifiers for NYSE Arca equities customers. Designed to prevent unintended interaction between the same Exchange Traded Permit IDs (ETP ID), STP modifiers allow customers to voluntarily restrict their orders from executing with their same ETP ID.

“Through these modifiers we have further enhanced NYSE Arca’s trading technology to allow customers to utilize our market even more efficiently,” says Paul Adcock, NYSE Arca Executive Vice President. “This smart order handling functionality is just another illustration of NYSE Euronext’s dedication to creating a highly efficient and competitive marketplace for all participants.”

The new technology will include the following modifiers: 

• STP Cancel Newest (STPN). An incoming order marked with the STPN modifier will not execute against opposite side resting interest marked with any of the STP modifiers from the same ETP ID. The incoming order marked with the STPN modifier will be cancelled back to the originating ETP ID. The resting order, which otherwise would have interacted with the incoming order by the same ETP ID, will remain on the NYSE Arca Book.

• STP Cancel Oldest (STPO). An incoming order marked with the STPO modifier will not execute against opposite side resting interest marked with any of the STP modifiers from the same ETP ID. The resting order, which otherwise would have interacted with the incoming order by the same ETP ID, will be cancelled back to the originating ETP ID. The incoming order marked with the STOP modifier will remain on the NYSE Arca Book.

• STP Decrement and Cancel (STPD). An incoming order marked with the STPD modifier will not execute against opposite side resting interest marked with any of the STP modifiers from the same ETP ID. If both orders are equivalent in size, both orders will be cancelled back to the originating ETP IDs. If the orders are not equivalent in size, the equivalent size will be cancelled back to the originating ETP IDs and the larger order will be decremented by the size of the smaller order with the balance remaining on the NYSE Arca Book. 

• STP Cancel Both (STPC). An incoming order marked with the STPC modifier will not execute against opposite side resting interest marked with any of the STP modifiers from the same ETP ID. The entire size of both orders will be cancelled back to originating ETP ID.

While ETP Holders may elect to add the STP modifiers to orders at the ETP ID level, modifiers must be present on both the buy and sell order in order to effect a cancel instruction. Also, incoming STP orders cannot cancel through resting orders that have price and/or time priority. All STP modifiers are in accordance with the Order Ranking and Display process pursuant to Exchange Rule 7.36.