NYSE specialists revamped; VDM deal close -sources

By Megan Davies

NEW YORK, Nov 30 (Reuters) - New York Stock Exchange "specialists," the floor traders who have been so named since 1871, could be rebranded under a modernization of the trading system.

The NYSE, along with specialist and broker communities, is brainstorming ideas on new names, which could include variations on "liquidity provider" or "market maker", Lawrence Leibowitz, the NYSE's chief operating officer of U.S. Products, said in an interview on Friday.

That reflects the changing face of the NYSE, which has become increasingly electronic as rivals such as Nasdaq Stock Market Inc (NDAQ.O: Quote, Profile, Research, Stock Buzz) eat away at its market share.

While the specialist name dates back more than a century, changing it is unlikely to cause much uproar with traders more concerned about keeping their jobs than what they are called.

"At one time it had a power -- it doesn't have that power now," said Muriel Siebert, founder and president of the NYSE brokerage firm that bears her name, Muriel Siebert & Co, Inc.

She said the role lost such importance when electronic systems came in. "What does specialist mean anymore?" Siebert added. "The name doesn't mean anything."

Specialists are floor traders that match buyers and sellers on the New York Stock Exchange floor to manage volatility.

Their role changed in the past few years as the Big Board, owned by NYSE Euronext (NYX.N: Quote, Profile, Research, Stock Buzz), used more automated trading. Last year it introduced a hybrid model that combined traditional open-outcry trading with electronic trading, but reduced the need for people on the floor.