[ by Howard Haykin ] The NYSE proposes to amend Rule 13 to establish new order types; it also will amend Rule 115A to delete obsolete text and to clarify and update the description of the allocation of market and limit interest in opening and reopening transactions, and Rule 123C to include better priced G orders in the allocation of orders in closing transactions. New Order Types: MOO, LOO, MOC, LOC. The Exchange would amend Rule 13 to delete the At the Opening and At the Opening Only order types - and replace them with Market "On-the-Open" ("MOO") and Limit "On-the-Open" ("LOO") order types, terminologies commonly used by other exchanges and variations of the Market "At-The-Close" ("MOC") and Limit "At-The-Close" ("LOC") order types already offered by the Exchange. Currently, under Rule 13, At the Opening and At the Opening Only orders can execute after the security opens on a quote, which is why the current definition includes provisions relating to routing such interest to an away market.  But the Exchange want to change that to preclude such interest from executing after opening on a quote, or routing to an away market. The new MOO and LOO order definitions would specifically provide that such order types automatically cancel if the security opens either on a quote or a trade.  A MOO would be defined as a market order in a security that is to be executed in its entirety on the opening or reopening trade of the security on the Exchange;  it would be immediately and automatically cancelled if the security opened on a quote or if it were not executed due to tick restrictions. A LOO order would be defined as a limit order in a security that is to be executed on the opening or reopening trade of the security on the Exchange.  A LOO order, or a part thereof, would immediately and automatically cancel if by its terms it were not marketable at the opening price, if it were not executed on the opening trade of the security on the Exchange, or if the security opened on a quote. Both MOO and LOO orders could be entered before the open to participate on the opening trade or during a trading halt or pause to participate on a reopening trade. New Order Type: MTS. The Exchange also proposes to add a new paragraph (c) in the definition of IOC orders to provide for a new order type, an IOC-Minimum Trade Size ("MTS") order ("IOC-MTS order"), which would be defined as any IOC order, including an intermarket sweep order, that includes an MTS instruction. For each incoming IOC-MTS order, Exchange systems would evaluate whether contra-side displayable and non-displayable interest on Exchange systems could meet the MTS and reject such incoming IOC-MTS order if Exchange contra-side volume could not do so.  An NYSE IOC order with an MTS could result in an execution in an away market.

e.g. - For example, assume that the Exchange best bid or offer is $10.05 - $10.07 with 500 shares offered.  A buy NYSE IOC-MTS market order for 500 shares arrives, and because NYSE can fill it, the incoming NYSE IOCMTS order would be accepted.   However, if the current best protected offer is $10.06 on another market for 200 shares, NYSE would route 200 shares of the incoming NYSE IOC-MTS to Nasdaq and execute the balance of 300 shares at $10.07.  The Exchange would reject any IOC-MTS orders if the security were not open for trading, if it were halted or paused, or if auto-execution were suspended.

The Exchange proposes non-substantive amendments to its Immediate or Cancel definition as well, including adding the short-form term "IOC" to the rule, redesignating existing paragraphs (c) and (d) as (d) and (e) respectively, and conforming existing rule text to provide that only an IOC order without an MTS could be entered before the Exchange opening for participation in the opening trade or when auto execution is  suspended, which includes during a trading pause or halt.  Existing paragraph (e) would be deleted because it contains obsolete text. The Exchange proposes additional technical and conforming amendments to Rule 13. The Exchange proposes to delete the definition of Auction Market Order because this order type was never implemented.  The Exchange also proposes to delete the definition of Time Order because this relates to a Floor broker order that historically would have been held by the specialist on behalf of the Floor broker and converted to a market or limit order at a specified time.  In connection with both the Hybrid Market initiative and the Exchange’s New Market Model, this order type is now obsolete and can no longer be used by Floor brokers.  In addition, the Exchange proposes to amend the definition of Auto Ex Order to remove a reference to the Automated Bond System, which is no longer operational. To continue reading about amendments to Rule 115 Opening Allocation and Rule 123 Closing Allocation, or for details on any other rule changes, go to:  [NYSE Rule Filing 12-19, 6/15].