TheNew York Stock Exchangeplans to roll out its third phase of the hybrid market at a faster pace now that it’s gotten approval for it from theSecurities and Exchange Commission. The exchange last week started trading 399 issues electronically, the biggest block launched since the exchange began the rollout in October. So far, 661 issues trade electronically. NYSE expects to convert over 2,000 listings to hybrid trading by early January. Another development stage that would add order types, functionality and testing must be completed after the rollout for hybrid to be complete.
NYSE had wanted to be done with hybrid rollout by the end of the year, but the necessary approvals from the SEC were delayed. NYSE must roll out the entire hybrid market by February, when Reg. NMS goes into effect. The new rule gives electronic markets best price protection, so any competitor must sweep their books before executing orders. If the NYSE remains manual, it runs the risk of being bypassed. A spokesman said the exchange expects to meet the Reg. NMS deadline.