The International Securities Exchange (ISE) announced today that ISE is now using ConvergEx Group technology to implement post-trade allocation functionality for the stock leg of tied-to-stock options orders.
The new functionality can be applied to orders that are entered into ISE's 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. This is the first time that fully automated post-trade allocation for stock has been available to the options market.
"We are very excited to partner with ConvergEx to provide our members with greater control and flexibility in managing their trades," said Boris Ilyevsky, Managing Director of ISE's options exchange. "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."
"Working with ISE to further leverage the Millennium ATS'* capabilities and expand our business partnership is a great example of ConvergEx's focus on developing technology to improve execution for our clients and partners" said Brian Carr, Managing Director and Co-head of ConvergEx's Millennium group. "We look forward to working with ISE on continuing innovations in the tied-to-stock options space."
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.
* ConvergEx Group acquired the Millennium ATS in December 2009.