Multi-legged strategy orders on the International Securities Exchange’s (ISE) options venue can now access liquidity on other alternative trading systems (ATSs), increasing execution quality and fill rates.
The stock component of multi-legged orders can now access liquidity at ATSs run by Deutsche Bank, Getco, Instinet and Knight, in addition to ISE’s existing routing capabilities to ConvergEx.
ISE supports options orders of up to eight options legs and one stock leg, and member firms can select one or more destinations for their stock leg execution. Clients can also specify routing priority to these venues and the ISE also offers automatic prioritisation of venues for clients.
Boris Ilyevsky, managing director of ISE’s options exchange, said his firm was the first options venue to offer such flexibility for the stock leg execution component of strategy orders.
“The addition of new venues to source liquidity for the stock component of buy-write and delta neutral orders will substantially improve the execution quality of these orders,” said Ilyevsky.
“ISE already offers industry-leading capabilities for trading multi-legged strategy orders, and this latest enhancement demonstrates our commitment to continually improve upon our offering,” Ilyevsky said.