ISE Introduces Add Liquidity Only Order Type

The International Securities Exchange (ISE) today announced that it has introduced a new order type, the Add Liquidity Only Order (ALO). An ALO specifies that the order can only be executed if it adds liquidity to the order book as a “maker.” If the order cannot be added to the book, it will be cancelled, or may be re-priced to rest on the book at the discretion of the firm entering the order.

Boris Ilyevsky, Managing Director of ISE’s options exchange, said, “This new order type gives greater control to our customers as they manage the various fee structures across multiple options exchanges. By using an ALO, a member firm will be able to ensure that an order only executes as a maker on ISE.”

ALOs are currently available to member firms connected through ISE’s Direct Trading Interface. The order type will be introduced for FIX and PrecISE connections at a later date.

To learn more, please contact ISE Business Development at bizdev@ise.com.