APPENDIX VI-H SUMMARIES AND EXCERPTS OF CERTAIN PRIOR STUDIES OF FLOOR TRADING AND OTHER BACKGROUND DATA 1. TABLES ON NUMBER OF FLOOR TRADERS AND VOLUME OF FLOOR TRADING APPENDIX VI-H: TABLE 1.-New York Stock Exchange: Floor traders' round-lot purchases and sales as a percent of total round-lot purchases and sales (1937-61) APPENDIX VI-H: TABLE 2.-American Stock Exchange: Floor traders' round-lot purchases and sales as a percent of total round-lot purchases and sales (1937-61) APPENDIX VI-H: TABLE 3.—New York Stock Exchange: Number of floor trading accounts (1935, 1941, and 1950–61) 1 Year 1 NOTE.-Totals derived from the NYSE forms reflect only those member accounts engaged “primarily” or "intermittently" in floor trading, and are estimates only. SEC studies indicate that the total number of members effecting floor trades is significantly higher than the totals indicate. Th's, 188 members reported floor trades during the month of January 1952, and 250 members reported floor trades for a 2-week period in October of 1959. Sources: Data for 1935 and 1941 were reported in the Segregation Report and the 1945 Report. Data for the remaining years were obtained from forms filed by the NYSE with the Commission. APPENDIX VI-H: TABLE 4.-American Stock Exchange: Number of floor trading accounts (1945–48, 1958, 1959, and 1961) Figures given are the average number of floor traders reporting weekly for the quarter of each year in which the greatest number of members effected floor trades. NOTE. The American Stock Exchange does not file data with the Commission on the number of floor traders. The above statistics were obtained for special studies conducted by the Division of Trading and Exchanges. 2. CONCENTRATION OF FLOOR TRADING IN A LIMITED NUMBER OF ALL FLOOR TRADERS a. 1952 Report, NYSE: "Of the 188 members reporting [floor trades] during the period [4 weeks ended January 26, 1952], 34 accounted for 70 percent of all members' purchases and 62 percent of all members' sales. The purchases of each of these 34 members ranged from 5,000 to 49,890 shares, while the volume of purchases by the remaining members amounted to: 4,000 to 5,000 shares by 11 members b. January 1959 Report, Amer: "Of 101 floor traders reported having effected transactions during the 2-week period [ended October 17, 1958] under review *** 26 *** were responsible for 82.5 percent of the total purchases by all floor traders and for 62.3 percent of their sales. The total purchases of each of these 26 floor traders ranged from 5,000 to 60,100 shares while their sales ranged from 4,800 shares to 100,500 shares. "The volume of transactions effected by the remaining 75 relatively inactive floor traders was as follows: Purchases: 4,000 to 5,000 shares by 5 traders 3,000 to 4,000 shares by 3 traders 2,000 to 3,000 shares by 7 traders 1,000 to 2,000 shares by 14 traders 500 to 1,000 shares by 13 traders 100 to 500 shares by 23 traders No purchases (sales only) by 10 traders Sales: Over 5,000 shares by 3 traders 4,000 to 5,000 shares by 3 traders 3,000 to 4,000 shares by 6 traders 2,000 to 3,000 shares by 4 traders 1.000 to 2,000 shares by 15 traders 500 to 1,000 shares by 13 traders 100 to 500 shares by 21 traders No sales (purchases only) by 10 traders" c. June 1959 Report, NYSE: "A total of approximately 250 floor traders purchased and sold 3,569,000 shares in the 2-week period ended October 17, 1958. However, in the same period, 50 floor traders accounted for approximately 70 percent, and 15 accounted for approximatley 35 percent of all floor trading. Fifty floor traders bought 1,258,000 shares and sold 1,199,000 shares amounting to 74 percent of the shares purchased and 64 percent of the shares sold by all floor traders." d. 1960 Report, Amex: "During the 9-week period [alternate weeks between June 29 and October 23, 1959] a total of 133 members and member firms reported transactions as floor traders in one or more securities. However, only 23 traders had average weekly purchases of 1,000 shares or more and these 23 accounted for 80.2 percent of total purchases by all floor traders. "The average weekly purchases by the remaining 110 less active floor traders were as follows: This memorandum reports the findings of a study of floor trading during the 2-week period ended April 14, 1961. Of 73 members reporting floor trades, 25 accounted for 92.9 percent of the total shares purchased and sold by all floor traders. Exhibit A of the memorandum compares the results of the 1958, 1959, and 1961 studies, as set forth in table 5. |