US-based options venue the International Securities Exchange (ISE) has improved its complex order book to let market makers provide two-sided quotes for complex or multi-legged instruments.
Included as part of the ISE’s Optimise trading platform, the improvement means the ISE complex order book can accommodate multi-legged instruments with eight options legs along with a stock component. The improvement is intended to give ISE market makers more flexibility and control over the liquidity they provide in the complex order book.
ISE has initially rolled out quoting ability for 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. Complex quotes only trade with other complex orders and do not interact with individual legs on the regular order book. The ISE has said it will disseminate the aggregated size and price for complex quotes over the ISE Spread Book data feed.
“By introducing this functionality, we hope to encourage greater liquidity and better executions in our complex order book to support the growth of this segment of the options market,” said Boris Ilyevsky, managing director of ISE’s Options Exchange.
The ISE extended a fee waiver to new users of its proprietary front-end trading terminal, PrecISE Trade by two months, in October 2011, in an attempt to boost participation on its markets.