Serena Ng and Geoffrey Rogow of The Wall Street Journal report that the NYSE will implement rebates for order flow and faster technology in response to market-share losses to BATS and other venues.
According to their report, the population of the NYSE trading floor has declined from 5,000 to 1,200 over the past five years. The floor will become more crowded today when 370 options traders from the American Stock Exchange join the fray.
The NYSE will also try to narrow the performance gap between its technology and that of its rivals. From the Journal:
In coming weeks and months, NYSE plans to roll out technology to reduce trading times and narrow the gap with its rivals, who up till recently have been able to execute trades in less than a fifth of the time. By streamlining and upgrading its systems, NYSE has so far reduced latency, or the time it takes to execute an order, by about 28% to 62 milliseconds from 86 milliseconds in the past three months. Later this quarter or early next, NYSE expects to further drop latency into the single-digit milliseconds, closer to some of its peers.