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What is the Automated Pricing and Reporting System?

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  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 08 November 2016
  • Copyright Protected:
    2003-2016
    Conjecture Corporation
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The Automated Pricing and Reporting System is the mechanism used by the New York Stock Exchange to communicate information about stock sales and other stock activity to investors and brokers. The reporting system is unique to the NYSE, and is specifically designed to function within the perimeters set by the function of the Exchange itself. All aspects of stock sale and related stock activity are reported in a realtime manner, including information about current stock prices.

Along with reporting general information, the Automated Pricing and Reporting System also has a unique function that has to do with odd lots of various stocks. The pricing system component of the computer network assesses the status of odd lots of stocks and helps to determine the price that will prevail in relation to a given odd lot. At the same time, the reporting system component of the network will make this information available to brokers and investors, who can then consider acquiring the odd lots currently in circulation on the Exchange.

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Part of the way that the Automated Pricing and Reporting System manages to evaluate and price the odd lots is by analyzing the pricing and activity on round lot sales of the same or similar security. Making use of this important historical data helps to define the perimeters for the evaluation, as well as provide a foundation for what the opening or current price for the odd lot should be. Many investors consider the Automated Pricing and Reporting System to be the most logical in the approach to dealing with odd lots, as the system does rely on verifiable data and is not subject to hunches, intuition, or some other factor that is not grounded in logic.

Access to the results generated by the NYSE Automated Pricing and Reporting System is available to anyone authorized to trade on the Exchange, as well as brokers and financial analysts who cover and report market trends and activity in general. Some analysts will use the movement and pricing of odd lots on the NYSE as one of the more reliable market indicators that can help define the overall current conditions of the market.

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