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The Walls Come Tumbling Down: Investment Managers Get Direct Access to the Big Board

Product Type: Market Research Report
Published by: TowerGroup
Published: May 2000
Product Code: R301-0004
Description
The New York Stock Exchange, long held as a private, almost secretive organization, is tearing down the walls that have protected its members for hundreds of years. It is opening up access to its floor through its own offering, Institutional XPress, as well as permitting-and even assisting-other firms to take advantage of this newfound openness. As the NYSE prepares to launch its Institutional XPress offering, which will provide the buy side with direct access to the floor, buy side firms need to understand how the system works, and develop appropriate hooks into their proprietary and vendor-based systems.

As the NYSE and its member firms recognize the need to provide greater information and access to its nonmember constituents, other firms have emerged to take advantage of this new openness being espoused by the NYSE. One firm has been offering direct access to the NYSE floor for several years, but only for its member firms-until recently, that is. It is now offering its solution to the buy side for certain capabilities. And an upstart firm has emerged to provide a similar service, also to NYSE member and non-member firms.

Over the next several months, the NYSE, with competition and cooperation from NYFIX, Inc. and Gateway Financial Technologies (GFT), will provide direct access to the buy side. Although starting with only information dissemination, the NYSE will soon provide anonymous order routing and other capabilities, spurred on by the competition and cooperation of firms like NYFIX and GFT.

With many variations of direct access to NYSE available or on the horizon, this TowerGroup Research Note outlines some solutions and the impact that direct access will have on the future NYSE marketplace.

Table of Contents
Highlights

Vision

Introduction

Background

Methods and Systems Used to Interact Directly with the NYSE

  • NYFIX
  • Gateway Financial Technologies
  • NYSE's Institutional XPress

    Conclusion

    • Ordering and More Information
    Price and Delivery Options


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