ISE said that the new functionality can be applied to orders that are entered into its complex orderbook through proprietary, FIX or PrecISE connections.
Once a tied-to-stock options order has been executed, members will be able to change clearing instructions in PrecISE or split the stock component among multiple parties for clearing.
ISE plans to roll out this new post-trade allocation functionality for stock to its proprietary and FIX connections as part of the exchange’s upcoming migration to its new options trading system.
ISE already supports fully-electronic post trade allocation for the options legs of all order types through all connections.
ISE managing director of options exchange Boris Ilyevsky said that for the first time, firms who solicit liquidity from multiple parties for their clients’ tied-to-stock options orders can send their orders to ISE as one package and then split it among different parties after the trade is executed.
