Order Display and Execution
The NYSE bond marketplace provides opportunities for both liquidity takers and liquidity providers to interact in a fair, open environment. There are no subject orders — all orders are firm. All trades are locked in and uploaded to DTCC with the appropriate accrued interest adjustments made for clearing and settlement.
The NYSE Bonds orders are matched on a strict price/time priority basis. Undisplayed reserve interest will always yield to displayed orders at a particular price. All orders will only be matched with orders resident in the order book. Bonds will trade in decimal increments to 2 decimal places (e.g. 101.32).
Order Types
NYSE Bonds offers several order types:
- Limit: an order to buy or sell a stated amount of bonds at or above a specified price
- Reserve: a limit order with a portion of the size displayed, with a reserve portion of the size (the reserve size) that is not displayed
- Good Til Cancelled: a limit order to buy or sell at a specified price that remains active (during core trading hours) from one day to the next until the order is either executed or cancelled
Bond orders that trade on the NYSE are represented by a nine-character CUSIP.
An order to buy $25,000 face value of bonds issued by GMAC with a coupon rate of 5.25%, maturing in 2016, would appear in the NYSE system as:
- Buy 25 3704A0KC5 @ 101.67
- Quantity: 25 represents the number of bonds traded with a face amount of $1000
- CUSIP: 3704A0KC5 is the NYSE symbol for the bond issued by GMAC
