Meeting the volatility challenge
NYSE consistently outperforms during periods of volatility. For example, examining an especially volatile market period in 2022 finds NYSE-listed companies had tighter quoted spreads compared to Nasdaq-listed companies and achieved better accuracy on the opening and closing auctions. In this article, "When Volatility Calls, NYSE DMMs Answer", the NYSE Research team takes a deeper dive into NYSE listed-company performance when volatility is high, with a special focus on the Designated Market Maker (DMM).
NYSE Closing Auction
The New York Stock Exchange closing auction is the single largest liquidity event of the day – trading $18.9 billion per day, on average, and is the primary liquidity event for institutional and retail investors.
Significant liquidity and anonymity at the close help to minimize the market impact costs of large trades. On average, comparing the closing price to the Volume Weighted Average Price (VWAP) of the last two minutes, S&P 500 stocks have a price change of less than 0.053% with an average auction size of $37 million per security.
At the NYSE, the community of floor brokers and Designated Market Makers (DMMs) contribute over 35% of close liquidity, on average and between 3:50pm and 4:00pm, auction information is disseminated every second, providing transparency for market participants.
We have previously studied Closing Auction liquidity, participation and price dislocation, and now focus on the price impact of auction order submission.
NYSE Markets
NYSE markets are home to a diverse group of listed companies from around the world. We provide all-electronic, anonymous and hybrid trading models to support a diverse group of market participants.
It’s good to have options
Multi-list options are breaking nearly all volume records once again in 2022, driven by market volatility and the growth of retail participation. Market average daily volume in H1 2022 was 38.3M contracts, 1.1M contracts more than 2021, 10.7M contracts more than 2020 and over 20M contracts more than 2019.
Using a hybrid trading platform that combines an electronic system with open-outcry trading floors in San Francisco and New York, the NYSE Options markets offers a flat, open market structure and deep liquidity. Traders benefit from a range of sophisticated risk management tools and the market’s time priority model, which encourages market makers to provide investors with the best possible price. NYSE offers a dual market structure that combines access to Arca and American Options through a single integrated technology platform.
NYSE Pillar is the trading platform that will enable member firms to connect to all NYSE equities and options markets using a standard protocol. NYSE Pillar is designed to improve efficiency and reduce complexity for customers, while enhancing consistency, performance and resiliency.
The NYSE options exchanges will provide the benefits of the NYSE Pillar platform, which offers more efficient processing, enhanced determinism and lower latency, a shorter time to market for ongoing enhancements, and simplified, harmonized order types, terminology and messaging.
ICE creates connections that drive global opportunity
ICE’s digital networks combine data, technology and expertise, to connect people to opportunity. Our high quality, breadth and depth of data enables our clients to access insights while our expertise enables us to build solutions from a variety of data sets and technology to help solve business challenges.
Data & Analytics
Advance your market intelligence with a comprehensive set of market insights and information. ICE’s data and analytic solutions cover a broad range of asset classes to help you uncover investing and trading opportunities, maintain compliance and manage risk.
ESG Data
Better understand the ESG risks and opportunities of equity and fixed income securities (including listed companies, corporate bonds, MBS, municipals and sovereigns) with ICE ESG data sets.
Environmental Markets
As a leader in environmental markets for nearly two decades, ICE’s solutions span Europe and North America — the world’s most liquid environmental markets.
Data & Analytics
Advance your market intelligence with a comprehensive set of market insights and information. ICE’s data and analytic solutions cover a broad range of asset classes to help you uncover investing and trading opportunities, maintain compliance and manage risk.
ESG Data
Better understand the ESG risks and opportunities of equity and fixed income securities (including listed companies, corporate bonds, MBS, municipals and sovereigns) with ICE ESG data sets.
Environmental Markets
As a leader in environmental markets for nearly two decades, ICE’s solutions span Europe and North America — the world’s most liquid environmental markets.
