The International Securities Exchange (ISE) has enhanced its complex order book to enable market makers to provide two-sided quotes for complex, or multi-legged, instruments.
This capability was developed as part of ISE's implementation of the Optimise™ trading architecture and successfully launched on December 1.
ISE's complex order book can accommodate multi-legged instruments with up to eight options legs along with a stock component. As a result of this latest enhancement, ISE market makers have more flexibility and control over the liquidity they provide in the complex order book.
"ISE's new quoting capability for complex instruments is a first for the US options industry," said Boris Ilyevsky, Managing Director of ISE's Options Exchange. "By introducing this functionality, we hope to encourage greater liquidity and better executions in our complex order book to support the growth of this rapidly growing segment of the options market."
ISE has initially rolled out quoting functionality to three options. Within the complex order book, ISE market makers can enter a complex quote in any symbol activated for complex quoting, regardless of their symbol appointments in ISE's regular market. Furthermore, complex quotes only trade with other complex orders and do not interact with individual legs on the regular order book. ISE will disseminate the aggregated size and price for complex quotes over the ISE Spread Book data feed.