When a preferenced order is received by a selected market maker, the directed firm gets 40% of the order if the firm is quoting at the National Best Bid Offer. The remaining portion of the preferenced order is executed according to the regular allocation algorithm. If the preferenced market maker, which can be a Primary Market Maker (PMM) or a Competitive Market Maker (CMM), is not quoting at the NBBO, the order is treated as a regular order.
Preferenced orders are scheduled to be implemented at ISE on June 15.
