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The International Securities Exchange (ISE) announced that starting tomorrow, Friday, July 15, 2011, the Price Improvement Mechanism (PIM) for options classes traded on the OptimiseTM platform will be enhanced to accept multi-legged option orders. In addition to the numerous technical benefits of the new trading system, such as lower latency and higher throughput, this feature represents one of the first value-added attributes of the new technology that will directly benefit options customers.
Through PIM, member firms will now be able to facilitate their customers' orders of less than 50 contracts at a price that is at least one cent better than the best bid or offer available on ISE. PIM orders are exposed for further price improvement to all ISE market participants for one second. By allowing for complex orders to be entered into PIM, customers can now benefit from a price improvement auction that provides the opportunity to achieve a better net price for multi-legged orders.
"We are excited to offer this enhanced functionality to ISE's customers as part of our introduction of Optimise," said Boris Ilyevsky, Managing Director of ISE's options exchange. "By leveraging the unique capabilities and flexibility of Optimise, we are now able to provide access to PIM for multi-legged orders, resulting in the very tangible benefit of price improvement to customers."
This latest enhancement makes PIM ISE's third crossing order type that accepts multi-legged orders in addition to ISE's Facilitation and Solicitation mechanisms. PIM will initially be enabled to accept multi-legged orders made up only of options legs. ISE plans to enable PIM for multi-legged orders that include a stock component within the coming months.
Multi-legged orders for PIM, like all other ISE crossing orders, can be entered via PrecISE Trade®, FIX and ISE's Direct Trading Interface (DTI) application. For more information, contact ISE Business Development at bizdev@ise.com.
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