NYSE parity
Trading on the NYSE is different than other markets
The New York Stock Exchange is one of the only global exchanges that offers floor-based trading in a way that retains the benefits of human judgment at the point of sale while still giving investors the ease of electronic trading.
On the NYSE trading Floor Designated Market Makers (DMMs) and Floor brokers who execute trades on behalf of their clients play a critical role in NYSE’s unique market model, which delivers better market quality and democratized market access by de-emphasizing speed and rewarding those who set the best price.
Learn more about how the NYSE is the only exchange that uses a parity/priority allocation trading model, and how it can be advantageous for you.
NYSE's unique execution model explained
Most securities markets operate using price/time priority where orders are executed based at the best price based on the time of arrival. The order with the earliest time stamp trades first in its entirety before the next order, and so on.
NYSE is the only U.S. equity exchange that uses the unique “parity/priority” allocation model designed to promote deep liquidity and superior market quality. NYSE rewards participants who set the best price, then allocates the remaining shares to other orders at that price — rather than simply executing trades based on who is next in the queue.
By sharing the allocation among all who post at the best price, rather than how quickly they place the order, institutional investors can benefit from better fill rates, execution costs, and the ability to share executions at the same price as faster participants.
This model promotes broader participation from all customer segments, deeper liquidity and superior market quality.