|
|
 |
|
ISE's market structure integrates
auction market principles into an advanced screen-based trading
system.
EQUITY AND INDEX OPTIONS
The ISE operates two markets and combined, trades issues representing approximately 99% of options industry volume. The issues are divided into 16 bins.
FX OPTIONS
The ISE operates a seperate market for FX Options. Unlike the equity and index options markets where a bin may contain many options classes, each currency pair is in its own bin.
EQUITY AND INDEX OPTIONS
Each bin is overseen by a Primary
Market Maker (PMM). In addition to the PMM, up to 16 Competitive
Market Makers (CMMs) supply liquidity in each bin. Most PMMs and CMMs are
operated by large, global financial institutions with significant capital base
and notable trading experience.
ISE posts the best available bids and offers in each options
series. Unlike other exchanges, which display the prices
offered by the specialist in the options series, ISE’s
posted prices represent the most competitive bid and offer
in the entire ISE market.
PMMs and CMMs provide continuous quotations in their bins, and the ISE market
displays only the best bid and ask price in each option class. All orders at the ISE (customer,
firm, and market maker) receive the same execution privileges."
FX OPTIONS
Each currency pair is overseen by a FX Primary Market Maker (FXPMM)
. In addition to the FXPMM, up to 10 FX Competitive Market Makers (FXCMMs) supply liquidity in each pair. Similar to PMMs and CMMs, FX market makers are operated by large financial institutions. FXPMMs and FXCMMs provide continuous quotations in their bins. All orders at the ISE (customer, firm, and market maker) receive the same execution privileges.
Trade counter-party information is not visible to anyone in the ISE marketplace,
including PMMs. Both parties of a trade receive confirmations without learning
the identity of the counter-party. Anonymous trading allows market makers and
order-flow providers to post bid and ask quotations at their set prices, free
from any influence of other market participants. This anonymity enables pure
order executions. |
|
|
|