This excerpt taken from the LAB 10-Q filed Nov 10, 2008.
SEC Approval of New NYSE Market Model.
On October 24, 2008, the SEC approved a rule change proposed by the NYSE to establish a new market model that will implement significant changes in NYSEs market structure, including, among other things, (a) the phasing out of the specialist system and adopting a Designated Market Maker (DMM) structure; (b) the alteration of NYSEs priority and parity rules, including those that will allow DMMs to trade on parity with orders on NYSEs display book; and (iii) the introduction of new order functionality, including the DMM Capital Commitment Schedule (CCS) and hidden orders. In order to achieve parity trading
for the DMMs, the new market model is expected to eliminate the order-by-order advance look specialists currently receive, but the DMM would also be relieved of their negative obligation to not trade for its own account unless reasonably necessary to the maintenance of a fair and orderly market. The NYSE has stated that this change will give the DMM greater freedom to manage the trading risks associated with their reduced responsibilities to the NYSE market. In addition, under the changed rule, DMMs would continue to be able to generate orders through an algorithm that interacts directly with the NYSEs display book. Furthermore, the DMMs will be able to commit additional liquidity in advance to fill incoming orders via the CCS, which is a liquidity schedule setting forth various price points where the DMM is willing to interact with incoming orders. We are continuing to develop our trading technologies to interact in this new market model and are participating in a pilot program for selected securities under the new market model until the market model is fully implemented. We currently do not know when the new market model will be fully implemented on the NYSE, but we do believe the model will present us with additional opportunity to trade and provide liquidity in the market. It is too early to estimate the effects of this new market model on our future results, if any.