文档介绍：The Trades of NYSE Floor Brokers
e Sofianos* and Ingrid M. Werner**
NYSE Working Paper 97-04
November 1997
* International & Research
New York Stock Exchange, Inc.
11 Wall Street
New York, NY 10005
(212) 656-3257
gsofianos@
** International & Research
New York Stock Exchange, Inc.,
Stanford Business School, and
NBER
This draft, November 3, 1997
First draft, July 30, 1997
Please do not quote without the authors’ explicit permission; comments are e.
This research pleted while Werner was a Visiting Research Economist at the NYSE. We
thank Jim Cochrane, Michael Goldstein, Madhu Kannan, Julie Khalikov, Ananth Madhavan, Jean
Tobin and es Ugeux for ments. We also benefited from discussions with several
NYSE directors, members and officers; we thank them all for their input. Melek Pulatkonak
provided excellent research assistance and Katharine Ross answered many data-related questions.
ments and opinions expressed in this paper are the authors’ and do not necessarily reflect
those of the directors, members or officers of the New York Stock Exchange, Inc.
Abstract
The Trades of NYSE Floor Brokers
At the end of March 1997, 926 brokers were active on the trading floor of the
New York Stock Exchange. The NYSE floor plement the Exchange’s
electronic order flow transmission mechanism by executing orders on behalf of their
customers and by providing information to off-floor market participants. In this paper, we
use not-publicly-available data from the NYSE’s audit trail files to examine the
contribution of these floor brokers to the Exchange’s auction market.
In our sample, the dollar value of executed orders represented by floor brokers
amounts to 44 percent of the value of all executed orders. Floor brokers actively trade 76
percent of the orders they represent, leaving the remaining 24 percent with the specialist.
Trades with active floor broker participation are on average six times larger than other
NYSE trades. Off-floor tra