Filling Out the Order Ticket
When a broker receives an order, that information is recorded on an order ticket. Historically, an order ticket has been written on a standardized pad of paper, but it is in the process of being replaced by an electronic order ticket. Either way, the ticket must specify the following information:
- Buy or sell
- If a sell, "short" or "long"
- Account number
- Type of account
- Security's ticker symbol
- Quantity of shares
- Type of order
- Account executive ID number
- Discretion qualifiers, if any
Identifying Orders and Short and Long
What is the difference between selling "short" and selling "long"? A "long" sale is what you think of when you think of a sale of stock. The investor owns the stock and wants to sell it; what matters here is not whether she is selling at a profit or dumping an underperformer, but rather that she does in fact own the shares. A "short" sale, as described in an earlier section, is a sale of a security that an investor does not own.
Super Display Book system (SDBK)
NYSE member firms have the option to send orders electronically from the floor directly to the specialist through a system called Super Display Book (SDBK) system.
- The specialist represents these orders as an agent in the trading crowd.
- SDBK transmits member firms' market orders and day limit orders - up to specified sizes in virtually all listed stocks - to the proper trading floor workstation through the common message switch.
- Specialists receiving orders through SDBK execute them at their posts in the trading crowd as quickly as market interest and activity permit, and return reports to the originating firm's offices via the same electronic circuit.
Following execution of the trade, the confirmation process begins. A transaction report is sent to the originating brokerage firms - those representing both the buyer and the seller. Reports are also sent to consolidated tape displays worldwide - these are the tickers that scroll across the bottom of the screen on CNBC or Bloomberg - and to privately owned clearinghouses.