Equity Order Types

NYSE Arca offers a range of order types.

• Order Types
• Executed Order Type Usage

Trading Fees

Find a full description of all fees and charges on the NYSE Arca platform, including Odd-lot, ETP, Regulatory, and Market Maker fees.

• Trading Fees

Eligible Securities

NYSE Arca trades all NYSE, NYSE Arca, NYSE MKT, US and OTC listed stocks.

• Complete List of Securities Traded on NYSE Arca
• List of ETFs traded pursuant to unlisted trading privileges designated for the 4:15 core trading session

Clearly Erroneous Execution

On September 10, 2010, the SEC approved rules that expanded the stock-by-stock circuit breakers and clarified the process for breaking erroneous trades.  These changes were incorporated into the NYSE Arca Equities Rule 7.10.  These changes were also adopted by the other exchanges in the national market system.

• Clearly Erroneous Execution (CEE) Rule and Procedure Changes

A transaction is defined as “clearly erroneous” when there is an obvious error in any term, such as price, number of shares or other unit of trading, or  identification of the security. CEE Requests for Review are processed using a web-based submission service, which was designed to expedite and simplify the review process.

All NYSE, NYSE MKT, or NYSE Arca Submission Forms, and detailed CEE guidelines and policies are available on the NYSE Clearly Erroneous Execution Customer Submission website.

In the event that the website is not accessible, customers may submit a request via the form below.

• NYSE Arca CEE Submission Form

To process the request in this manner, please save the form to your computer desktop with the relevant information and email the attachment to NYSE Arca.

Order Processing

NYSE Arca maintains an electronic file to display and match orders, which are handled using three processes:

• Display Order Process — Market orders or marketable limit orders are instantly matched with the book orders that represent the best market price. Non-marketable limit orders are posted to the book. Limit orders have the highest priority in the book, followed by working orders, then tracking orders.
• Working Order Process — Working orders that cannot be matched against the ArcaBook are eligible for matching with non-displayed NYSE Arca interest — such as the non-displayed portions of reserve orders and discretionary orders.
• Smart Order Routing — If the best price isn’t available on NYSE Arca, the order can be automatically routed to another market center using our smart order (SmartBook^®) routing algorithm.

Limit orders are ranked and maintained in each process based on order type. For example, a limit order is stored in the Display Order Process. The displayed portion of a reserve order is ranked in the Display Order Process, while its reserve portion is filed in the Working Order Process. This allows all orders to be organized by time of entry, adhering to our price-time priority.

The order book operates on an open basis. Orders at all price levels in the Display Order Process of the ArcaBook will be displayed to all users and other interested parties on an anonymous basis unless they are designated as attributed quotes. The best-ranked displayed order(s) to buy and sell in the Book and the corresponding aggregate size of these orders associated with such prices will be collected and made available to quotation vendors.

Routing Policy and Process

NYSE, NYSE MKT and NYSE Arca (the “Exchanges”) route orders to away markets through either an Exchange affiliated router or one or more third-party routing brokers pursuant to NYSE and NYSE MKT Rule 17 and NYSE Arca Rule 7.45. Each third-party routing broker used by the Exchanges has its own policies and procedures with respect to the manner in which it may round or truncate execution prices that extend beyond four decimal places. Some third-party routing brokers may round to the fourth decimal place, while others may truncate to the fourth decimal place, before returning executions to the Exchanges. With the exception of routing in BRK A, those policies and procedures are established by the third-party routing broker and are not established by or at the request of the Exchanges and are not overseen by the Exchanges. In the case of BRK A, all executions returned in more than two decimal places will be truncated to two decimal places.

Routing Policy

NYSE Arca offers smart order routing that provides access to multiple pools of liquidity.

Auctions

NYSE Arca conducts three single-price auctions each trading day:

• Opening Auction —  4:00 a.m. ET
• Core Open Auction — 9:30 a.m. ET
• Closing Auction — 4:00 p.m. ET

The opening and closing auctions allow ETP holders to participate in real-time price discovery.

As part of the auction process, NYSE Arca calculates and continually disseminates three pieces of information:

• The indicative match price
• The indicative match volume
• The auction imbalance

• Complete List of Eligible Securities
  Itemizes the securities that are listed on NYSE Arca and other US markets that are eligible to trade in the core open and closing auctions

Opening Auctions

At 4:00 a.m. ET, Limit Orders designated for the Opening Session are matched and executed in the Opening Auction. NYSE Arca will accept orders for the Opening Auction beginning at 3:30 a.m. ET, and will continue accepting orders until the Opening Auction is conducted. Only limit orders that are eligible for the Opening Session will participate in the Opening Auction. Orders that participate in the Opening Auction cannot be canceled between 3:59 a.m. ET and the conclusion of the Opening Auction.

The Opening Auction will occur at the Indicative Match Price — the price at which the maximum volume of orders is executable at the time of the auction. If two or more prices can maximize executable volume, the Opening Auction occurs at the price closest to the previous closing price. NYSE Arca uses the maximum size of both sides and displays the worst price at the larger aggregate size. Unexecuted orders become eligible for the Opening Session immediately upon conclusion of the Opening Auction.

Examples

1. Book at 4:00 ET: Last Sale 18.50

Result: no match. The buy order (3000 @ 18.00) and sell orders (5000 @ 19.99, 2000 @ 20.00) do not overlap.

2. Book at 4:00 ET: Last Sale 18.50

Core Open Auction

The Core Open Auction serves as a bridge between the Opening Session and the Core Trading Session. The execution of the Core Open Auction is the first trade of the Core Trading Session. Limit orders eligible for the Opening Session only will be cancelled back prior to the start of the Core Open Auction.

Core Trading Session eligible limit orders, market orders and auction-only limit orders will participate in the Core Open Auction. Orders that participate in the Core Open Auction cannot be canceled between 9:29 a.m. ET and the conclusion of the Core Open Auction. This restriction does not apply to Opening Session-eligible limit orders, because these orders will participate in continuous trading on NYSE Arca between 9:29 a.m. and 9:30 a.m. ET. Core Trading Session-only limit orders, however, cannot be cancelled between 9:29 a.m. and 9:30 a.m.

Market orders that would participate on the same side as a market order imbalance cannot be entered into the Core Open Auction between 9:29.55 a.m. ET and the conclusion of the auction. MOO and LOO orders may not be entered between 9:29:55 and the conclusion of the auction regardless of whether they would offset an imbalance or not. For example, if the aggregate volume of market sell orders in the Core Open Auction is 30,000, and the aggregate volume of buy orders (including market and limit orders) is 25,000 shares, a market order imbalance on the sell side exists — so NYSE Arca will not accept market orders to sell between 9:29.55 a.m. ET and the conclusion of the Core Open Auction. As with the Opening Auction, NYSE Arca will calculate and continually disseminate the indicative match price, the indicative match volume and the auction imbalance. At 9:30 a.m. ET, the Core Open Auction will execute at a single price and all unexecuted orders will be released into the Core Trading Session.

The match price is the price that maximizes the volume that can be executed within the Auction Collars. The Core Open Auction will use the match price closest to the closing price of the previous trading day (based on normal market hours) if more than one indicative match price is valid. Imbalances and indicative match prices in the Core Open Auction reflect market orders only. In the following examples, the limit orders are "auction only" limit orders.

Core Open Auction Collars

The Core Open Auction will not execute outside of specified price collars. These collars will be based off midpoint of the Auction NBBO or, if the Auction NBBO is locked, the locked price. If there is no Auction NBBO, the prior trading day's Official Closing Price.

The “Auction NBBO” is an uncrossed NBBO where the midpoint of the NBBO, when multiplied by a designated percentage, is greater than or equal to the spread of that NBBO. The designated percentage will be determined by NYSE Arca upon prior notice to ETP Holders.

NYSE Arca may change these thresholds periodically upon prior notice to ETP Holders.

Examples

1. 9:30 a.m. ET: Previous close of 17

*Limit orders designated as auction only orders.

Result: all orders executed at 18.00.

2. 9:30 a.m. ET: First NBBO disseminated is $15.00 - $15.10

Result: Orders are crossed at $15.05

Closing Auctions

Similar to NYSE Arca’s current Opening Auction, the Closing Auction is a single-price Dutch auction that matches buy and sell orders at the price that maximizes the amount of tradable stock. NYSE Arca will calculate and continually disseminate the indicative closing price, indicative closing volume and the auction imbalance prior to the start of the Closing Auction, which occurs every trading day at 4:00 p.m. ET.

The NYSE Arca trading platform will only accept Market On Close (MOC) and Limit on Close (LOC) orders for NYSE Arca listed securities and a select group of Nasdaq listed ETPs.

The non-displayed portions of discretionary orders will not participate in the NYSE Arca Closing Auction. Between 3:59 and 4:00 p.m. ET (the freeze period), MOC and LOC orders cannot be cancelled. MOC and LOC orders that do not increase or flip the imbalance will be accepted for Auction processing (e.g. if there is a buy imbalance, no buy MOC or LOC orders will be accepted) during the freeze. Orders participating in Core Trading can be cancelled during the freeze period. Additionally, Market Orders entered during Core Trading that are not identified as MOC orders will not be included in auction calculations or participate in the Closing Auction.

Freeze Example

• A 500 share sell imbalance exists at 3:59 p.m. ET
• An MOC or LOC to buy 500 shares would be permitted because it achieves equilibrium
• However, an MOC or LOC order to buy 1,000 shares would not be permitted as it would flip the imbalance of 500 shares on the sell side to an imbalance of 500 shares on the buy side.

Any imbalance in the Closing Auction may be reduced by new orders, entered on the side of the market opposite the imbalance, using the following priority order:

• Market-on-Close Orders
• Limit-on-Close Orders
• The MOC orders that are eligible for, but not executed in, the Closing Auction shall be cancelled immediately upon conclusion of the Closing Auction

Publishing Order Imbalances

Beginning at 3:00 p.m. ET and then updated real-time, the Indicative Match Price, the volume to trade at that point, and any order imbalances associated with the Closing Auction, if any, will be published by NYSE Arca in the ArcaBook data feed. The following information will be published:

• Market Imbalance — the imbalance of any remaining buy (sell) MOC orders that are not already matched for execution in the auction
• Total Imbalance Reflects the total net imbalance of MOC, LOC and orders displayed in the ArcaBook
• Matched Volume — The volume already matched for execution at the indicative match price
• Indicative Match Price — The price at which the maximum volume of shares are executable

Determining Closing Auction Price

Until the time the Closing Auction is run, orders entered in the Core Session will continue to trade in the Core Session. At 4:00 p.m. ET all orders entered for the Closing Auction in addition to all displayed orders in the ArcaBook will be included in the Closing Auction.

• If there is no order imbalances, orders will be executed in the Closing Auction at the Indicative Match Price as of 4:00 p.m. ET and the indicative match price will be the price at which the maximum number of shares in the total imbalance can execute
• If there are multiple prices at which the total imbalance can equally execute, the indicative price will be based on the price closest to the last sale
• If the price closest to the last sale would trade through the ArcaBook, the indicative match price will be the best price available where no trade through occurs

If an imbalance exists, or if equilibrium exists between buy MOC orders and sell MOC orders and an Indicative Match Price doesn’t exist, as many buy MOC orders and sell MOC orders as possible shall be matched on a time-priority basis:

• At the midpoint of the NBBO at 4:00 p.m. ET, provided that the NBBO of the market centers that are still open is not locked or crossed
• At the locked price if the NBBO is locked at 4:00 p.m. ET
• At the bid (offer) side of the BBO which is crossed with the NBBO, if the NBBO is crossed at 4:00 p.m. ET and NYSE Arca is a party to the crossed market
• At the last sale during the regular market hours as determined by the consolidated tape, if the NBBO is crossed at 4:00 p.m. ET and NYSE Arca is not a party to the crossed market

Example 1

The following information will be disseminated via the ArcaBook data feed:

• Market Order Imbalance: 0 (all market orders matched with existing orders)
• Indicative Match Price: $10.05 (the most aggressively priced limit order to fill the entire imbalance)
Market Volume: 5,000 shares (at the indicative match price, the following orders are matched: 5,000 shares MOC to sell;
• 1,000 shares MOC to buy; 4,000 share LOC to buy)
Total Imbalance: 0 (there are no remaining shares to buy or sell stock at the indicative match price)

In this example, the 4,000-share LOC order has priced the auction at $10.05 (placing the order ahead of the bid in NYSE Arca's continuous trading system) by providing the most competitive price for the 4,000-share sell imbalance.

Example 2

The following information will be disseminated via the ArcaBook data feed and displayed on NYSE Arca’s Auction web page:

• Market Order Imbalance: 1,000 shares to sell (2,000 share MOC to sell minus 1,000 shares LOC to buy)
• Indicative Match Price: $49.75 (the LOC at $49.75 sets the price)
• Matched Volume: 1,000 shares
• Total Imbalance: 6,000 shares (there are 1,000 shares to buy and 7,000 shares to sell)

In this example, the 5,000-share LOC to sell has priced the auction at $49.75 though it would not participate in the auction if it were run with only these three orders.

Example 3

The Consolidated Tape last sale was $41.25. The following information will be disseminated via the ArcaBook data feed and displayed on NYSE Arca's auction web page:

• Market Order Imbalance: 0 (3,000 shares MOC to buy equals 3,000 MOC and LOC shares to sell)
• Indicative Match Price: $41.25 (price closest to the last sale)
• Matched Volume: 3,000 shares (3,000 shares MOC to buy equals 3,000 MOC and LOC shares to sell
• Total Imbalance: 0 (3,000 shares MOC to buy equals 3,000 MOC and LOC shares to sell)

Since there are multiple prices at which the total imbalance can be equally executed in this example, the last sale is used to determine the auction price.

Closing Auction Price Collars

The Closing Auction will not execute outside of specific collars based off of the last consolidated sale.

*If there is no Last Consolidated Price prior to an Auction, the collar percentage will be calculated based on the previous close.

NYSE Arca may change these thresholds periodically upon prior notice to ETP Holders.

Reporting Trades

All trades that participated in the closing auction will be reported to the tape with the *.M* extension— which will include both the official closing price and the volume of shares executed in the closing auction.

Risk Management Tool

NYSE/NYSE MKT and NYSE Arca are introducing new tools to supplement a firm’s own internal risk management tools. The Risk Management Tools (RMT) is a GUI that allows users to track executed exposure and make real-time adjustments to net exposure limits via a web interface.

Risk Management Tools (RMT) allow firms to:

• Define net exposure limits by risk group
• Track net notional exposure by risk group on NYSE/NYSE MKT or NYSE Arca
• View net notional exposure by symbol or mnemonic
• Receive email or web based alerts when nearing or breaching a firm defined limit
• In a future phase, auto-block and/or auto-cancel orders when firm determined exposure limits are breached

There is no cost for RMT.

Use of RMT is voluntary and designed to supplement a firm's own tools.

Additionally, firms will have the ability to bulk cancel orders via API if needed:

• For NYSE/NYSE MKT
• For NYSE Arca

To access RMT, an authorized signatory of the firm must submit a User Request Form. To set up RMT email notifications, the firm must submit an Email Notification Authorization Form.

• User Request Form
• Email Notification Authorization Form

Further Information

• RMT FAQ
• Watch our webinar