[RT] Re: STK: What's a Rule 127 trade?

[Daniel Goncharoff <TheGonch@xxxxxxxxxx>]

I believe a Rule 127 trade is a block trade outside the current bid/ask.
See the following paragraph found in a net search:

A block transaction that is proposed to be priced outside of the current
market quotation
is subject to NYSE Rule 127. Under this rule, the floor broker must: (1)
inform the specialist of his
or her intention to cross the block orders at a specific price; (2)
probe the market to determine
whether more stock would be lost to orders in the trading crowd than is
reasonable under the
circumstances; (3) fill at least a portion of the limit orders
previously entered at the trading post
from the block orders; and (4) cross the remaining block orders at the
negotiated clean-up price.
NYSE Rule 127 sets forth the broker's obligation to fill the limit
orders of the specialist and the
trading crowd. Such obligations depend, in part, on whether the broker
is handling agency
orders for both sides of the block transaction or whether all or a part
of one side of the block is
for the brokerage firm's house account.

Regards
DanG