ISE's trading rule will enable market makers and firms to automatically execute their orders against the displayed quote - - something that was historically only available to customers in the options market. In a "one size market," the displayed size of ISE's Primary Market Makers (PMM) and Competitive Market Makers (CMM) will apply to incoming orders from customers, broker/dealers, firms, away market makers, and immediate or cancel orders entered by market makers.
"ISE's 'one size fits all' trading rule gives new meaning to point and click trading and ushers in a new era in the options market," said Bruce Goldberg, ISE's Senior Vice President of Marketing.
The Securities and Exchange Commission's approval of ISE's "one size fits all" trading rule marks the first time in the 29-year history of the US options market that professional and institutional traders have been able to enjoy the same order-execution benefits as individual investors.
ISE filed the "one size fits all" rule because its PMMs and CMMs felt they were able to provide the liquidity needed to support "one size fits all" due to the sophistication of their trading systems, thereby enabling them to commit unparalleled capital resources to the options market.
