Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1910-01-20
EXCHANGE PUTS BAN
ON MATCHED ORDERS
New York Market Draws Up Rule For
bidding Method TO Produce WIS"
SuIcs." Conforming to Findings

or considerable interest TO the eN-
changes throughout the country Is inc
recent action OF the Consolidated eN
change OF New York in aooiisn"e
match orders In trading. This Is one
OF the first stops taken along TINS llns.
In speaking OF this, the Ne" III"
Commercial says: -.
The Consolidated exchange mas
adopted a rule designed TO nU0ai, Uo.I,.
matched orders in trading. INC
investigating committee apPoin.i
Gov. Hughes, as well as the icuefai y"
r.ostyeators of the exchanges. found
more fault with matched orders tn-i.i
with any other feature OF the tTIoins
on the New York Stock exchange 'n0
Consolidated exchange. the Cotton e
change and the Produce exchange ho'
10 mention the Metal exchange
The governors Of the Conso'lu'teI 80
exchange met yesterday Afternoon go, 80
amended the bylaw regaroins ID,
md bids by inserting the WORDS M Mpue
Iii hIds and offers In lots exceeding
100 shares must be filled by acceptlns
any part of such bid or oter III lVv-
share lots" The paragraph. as arheho-
cd. reads as follows. o,,
Section l. All offers to ouy anu 80
securIties shall be binding. and during
a call no member can w'tnuid" 4"
offer or bid except I'm an audloic EoiNs.
Tho broker who first makes oid Vi
offer Mt n fIgure shall have the precc-
derco over all others and his DID OF
offer must be flied before anothcr sn",'
have the privilege OF buying or seiiins
at tbe sainc figure; provided. however
tl,,t bids or offers In l00-share lots' o'
the same figue. may he hlled OF accoP.-
ed irrespective OF smaller lots, as oelhs
essentially different propositions bu.
all bids or offers in lots cNceeoihs wv
shares must be filed by accepting als
part OF such bid OF offer In lVo-shaIe
lots. A charge OF fraction OF Heule
gives the precedence TO the party ma
isI6q thc same. Withdrawal of oner or
hid IL permittcd. a sale shall take
all bids and offers off the floor. NO
offer or bid shall be recognized between
partners or members OF one hrm'
WHAT 1T MEANS.
]. E. Lynch. secretary OF the Consoi-
dated exchange. when seen regarding
the amendment. explained that tne
governors meant II TO carry out In Iuli
the recommendations of the Hughes
committee 1t Is designed specifically
10 nut a stop to all or none" bids and
offers OF large blocks of stocks. and TO
trades ordered to be made with "a
certain broker wearing n red and green
tie' and no other Hitherto II has
been a common trick in rigging the
market TO fIer to buy or sell all or
none" OF enormous blocks Of stock.
10 900 shares or more, which no one
broker was likely to have an order Tor
In the ordinary course OF business. inc
enforcement OF the new rule VIII en-
able any broker to buy or sell any part
OF such large block from the maker OF
tho offer In l00-share lots or multiples
thereof
During the recent and, for that mat
tor, the present excited trading in cot
ton on the Cotton exchange, certain
brokers and traders contend that GER
tain "all or none" offers and bids for
10000 bale lots were not bonafide, but
were matched for the purpose or
washing the price up OF down. These
brokers wish to see the Cotton cx
changes follow the example OF tho
Consolidated exchange and give any
broker n right to buy or sell le0 bales
or multIplcs thereof from or to the
maker of the offer of 10000 bales. They
say the scheme of moving the price up
or down on fictitious bids for or offers
OF impossible lots OF cotton "all OF
none" must be stopped as similar trades
have been on the Chicago Board of
Trade, when attempts are made to run
month-cnd corners In the grain mar
ket
The Consolidated exchange sees big
things coming Its way on account of
the troubles within the other ex-
changes, and wishes to be In a position
to handle big trades while giving the
small trader chance for his life.