ISE introduces implied order functionality

Displays liquidity from ISE's complex order book

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NEW YORK, May 3, 2012 - The International Securities Exchange (ISE) announced today that it has introduced Implied Order functionality*. With Implied Orders, ISE will significantly enhance the execution of multi-legged strategy orders by enabling greater interaction of the complex order book with the regular order book. The result will be an increased fill rate for multi-legged strategy orders as well as tighter spreads and increased liquidity on the regular order book.

Gary Katz, ISE's President and CEO, said, "The launch of Implied Orders is a milestone accomplishment for ISE and will deliver measurable improvements in the execution quality of both our complex and regular order books. I am extremely proud of the technology team that designed and developed this very sophisticated functionality, which is a first in the U.S. options industry. Implied Order functionality truly provides our customers with a uniquely innovative, industry-leading platform for trading multi-legged strategy orders."

Implied Order functionality displays liquidity from ISE's complex order book on the regular order book published to OPRA. An Implied Order is automatically created if the limit price of a multi-legged order can match or improve the ISE Best Bid or Offer when each leg of the multi-legged order is paired against a resting order or quote. For the system to generate an Implied Order, the net price of the multi-legged order must be satisfied when both legs are filled on the regular book. This functionality will be automatically available in ISE's trading system for eligible multi-legged orders.

* Also known as Legging Orders as per ISE Rule 715(k).

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