Stock Exchange Expanding Floor Trading to All U.S. Equity Securities

By the end of the year, The New York Stock Exchange plans to have all U.S. securities available for trading on the NYSE floor. This gives investors another less speed-dependent, way to trade securities such as Nasdaq-listed stocks and exchange-trade funds.

“NYSE, which announced the change on Wednesday, restricts floor trading to the 3,166 stocks listed on the Big Board. The action will raise the number of securities that can be traded through a floor broker to 8,600 and includes stocks and ETFs from all-electronic markets Nasdaq Inc, Bats Global Markets and NSE Arca,” according to the statement.

Stock trading has become more electronic over the past few decades. “Most trading floors have been closed in favor of fully automated exchanges many of which emphasize speed and allocate stocks based on a first-come first-served model at the best price model” according to Reuters. 

The focus on speed has created an unlevel playing field where firms using high-frequency trading strategies can use sophisticated technology to gain an advantage over investors with less means, says critics. 

Stacy Cunningham, the CFO of the NYSE said, “Our plan to provide even greater access to trade U.S. securities is a positive move toward bolstering fair and transparent liquidity and offering even greater choice.”

“NYSE is in the middle of moving its equities and options markets, including the NYSE, NYSE MKT, NYSE Arca Equities, NYSE Arca Options, and NYSE Amex Options, to a new trading technology platform, known as Pillar.” according to the statement.

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