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Coming Soon to the New York Stock Exchange: Reserve Orders for Electronic Entry -- Reserve Orders Will Offer Customers Greater Choice, Flexibility -- In response to customer interest, the New York Stock Exchange is planning to introduce in the coming months two types of reserve orders for electronic entry. The new order types will provide customers with greater choice and flexibility in how they access the unparalleled liquidity of the NYSE. Phase 1 To be introduced in 2Q 2008 with a 100-stock pilot; Minimum published amount: 100 shares; Minimum published amount will be displayed to specialists physically on the NYSE trading floor and on NYSE OpenBook®; Will not be available to the specialist API and therefore not eligible for electronic price improvement from the specialist; Both the displayed portion and the hidden, reserved portion will participate in all other electronic executions; In the event of a manual trade, will have trade-through protection on the trading floor by being included in the aggregate with orders that are eligible to participate in that trade; Minimum published balances of fewer than 100 shares will be rejected. Phase 2 An additional version of the reserve order will be introduced in 3Q 2008, also with a pilot in the same 100 stocks; Published quantity will be zero; Completely dark – will not be displayed to specialists physically on the trading floor or on NYSE OpenBook®; Not eligible for inclusion in manual, floor-based trades; cannot be probed for block trades on the floor; and is not trade-through protected for such trades; In Phase 2, customers who continue to elect the first version of the Reserve Order – also called the Block Reserve version – will continue to publish at least 100 shares and in doing so will have their orders available for trade-through protection for manual, floor-based trades. In addition, floor brokers interested in trading in size will be able to probe this order type on request and in a fully auditable fashion. Both phases – as well as the ability to extend the pilot to all securities – are subject to approval by the Securities and Exchange Commission. In addition, both phases will be supported through the NYSE Common Message Switch (CMS) and will be available in the Common Customer Gateway (CCG) shortly at a date to be announced.
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