NYSE Arca

The New York Stock Exchange building on August 9, 2011, when Deutsche Bank's db-X Group commenced trading on NYSE Arca[1]

NYSE Arca, previously known as ArcaEx, an abbreviation of Archipelago Exchange, is an exchange on which both stocks and options are traded. It is owned by Intercontinental Exchange and is headquartered in Chicago.[2]

Early reports indicated that NYSE Arca may have played a role in the 2010 Flash Crash.[3]

History

In November 1994, Stuart Townsend and Gerald Putnam founded TerraNova Trading LLC, an electronic securities exchange, in Chicago. Its product, Archipelago, started accepting trading orders on January 20, 1997.[4]

In 2005, Archipelago Holdings, the owner of ArcaEx, bought the Pacific Exchange, after what had been a close working relationship since 2001.[5]

On Monday, March 20, 2017, the Arca platform stopped functioning due to a "system issue" and the exchange was unable close trading for an undetermined number of funds.[6]

Fees

NYSE Arca's liquidity fee and rebate structure resembles that of other electronic communication networks. In late 2006, it was the first one to offer NASDAQ-style fees on New York Stock Exchange-listed securities, a move that was soon copied by NASDAQ and other electronic communication networks. NYSE Arca charges traders that remove liquidity from the Arca-book $3.00 per 1,000 shares. Traders that add liquidity receive a $2.00 rebate per 1,000 shares. Traders that route orders out of the NYSE Arca system are charged $1.00 per 1,000 shares for Tape A securities and $4.00 per 1,000 shares for other securities.

See also

References

  1. ↑ Deutsche Bank`s db-X Opens NYSE Arca on August 9, Reuters
  2. ↑ "NYSE Arca Overview". Bloomberg BusinessWeek.
  3. ↑ Phillips, Matt (11 May 2010). "Nasdaq: Here's Our Timeline of the Flash Crash". The Wall Street Journal.
  4. ↑ "Archipelago Holdings LLC". Free Encyclopedia of Ecommerce.
  5. ↑ York, New (January 4, 2005). "Archipelago to Buy the Pacific Exchange". Chicago Tribune.
  6. ↑ "Glitch at NYSE Arca Hits Hundreds of Exchange Traded Funds". Financial Times. March 21, 2017.


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