TOS typically used to route my non-marketable limit orders to ISE and my marketable orders to PHLX. Cool, no problem. In the last few weeks, it seems that my non-marketable orders are being routed to CBOE where they tend to sit. I did a little test this week. I had a limit order working at CBOE and I was the nbbo for over 15 minutes. I routed an identical order to ISE and was filled within seconds. I then had plenty of time to cancel the order rotting at CBOE. Has anyone else observed this scenario????
I don't use TOS but that is fairly irrelevant. In my opinion though I would prefer CBOE. In order of where I want to go it usually is: CBOE->ISE->PHLX->ARCA->NOM->BOX .... It also depends on how many contracts are already sitting on any particular exchange, but for the most part I prefer CBOE over the others and tend to get filled best there.
I have a bias towards CBOE (ex MM for 20+ years), but the truth is I get the best and most rapid fills at ISE. I would never route to CBOE again - unless something drastic changes. Mark
I always route to ISE on most ETF and stock options. I only use CBOE on SPX,DJX, and XSP because I have to. However, I have started trading MNX and RUT more than SPX and DJX so I always route to ISE on those. Still remember, if you are trying to get mid points on some of these index options, you will more than likely have to wait a few min, it usually does not happen instantly for me. Do any of you look at the Spread Book on TOS or OX on some of these index options. Sometimes, if you see someone trying to take the other sides of the legs that you want, you can take the other side of their trades and get instant fills because the broker will just route to their own customers.
I don't think TOS crosses orders internally like that. Spread orders are routed to one of the COB's (Complex Order Books), e.g. ISE or CBOE, and they sit there. The orders you see on the TOS platform are copies of those orders, but there's no internal order book from which you can directly remove liquidity. All the spreads you see on the list were already routed to an external COB.
Personally it only matters where you send your order for complex orders IMO. If you are doing a spread you HAVE to make sure it gets sent to the ISE or the CBOE. It will sit on the PHLX all day, while it is tradeable on the CBOE. Another thing, if you are dealing with SPX, OEX, or VIX options the CBOE may be your only option make sure that isnt your problem. www.option911.com