ISE options exchange proposes new, punitive rules for active traders

How about 1,000,000 blips per second? Or 100,000,000 blips per second? Blips are not free. Blips require hardware, software, and human beings. And these blips, in particular, require a long and expensive audit trail.

-segv

 

Make no mistake, the ISE cancel charge is designed to remove the active retail trader with order book priority. With fewer orders ahead in the order book, market-makers will increase profits. Their increased profits will be the largest movement of money surrounding this issue.

 

It will be hard to take away the options bid-ask spreads. Back month options easily have spreads like 6.00 - 7.00. I'm trying to remember a stock that normally had a percentage bid-ask spread like 6.00 - 7.00.

 

There is an SEC "comment" section, for those of you who wish to vent (and perhaps maybe stop) about this rule:

SEC ISE Rulemaking Comment Page

Scroll down to "SR-ISE-2006-23 Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Relating to Cancellation Fee Changes "





Fair Disclosure: I'm totally AGAINST this rule - Not cancelling my order would only make me a sitting-duck...

 

exactly. egggg-zactly.


and cancellations are a huge lever. recall, nyse traders, how the specialist had what, 2 minutes, to give you the OUT once you hit your cancel button? Two minutes!! How long does it take to move your market have a buck and fill the order? not long at all.

don't get me started.

ON the other hand: market makers need to make a living, and must have an edge.

trust me, if you think that markets are going to be all hunky-dory with tom, dick, and harry acting like market makers, then you never heard of EMLX.

Market makers are professionals -- it takes more than just making prices. Alot more. Not least of which is deep pockets, and lots of experience, and long term commitment.

Complain about MM's all you want (I've done my share)...complain about the government and taxes. You really wouldn't want a world without any of them, after all.

 

simple solution -- don't trade on ISE. Trade something else on other exchanges.

 

Yep, I'd fool em. Quit trading options. Easier ways to make money than options in my opinion.

OldTrader

 

just curious, how does ISE compare to BOX http://www.bostonoptions.com generally?

 

Alternatively, email ISE's General Counsel, Katherine Simmons.
Her email address is ksimmons@iseoptions.com
Phone: 212-897-0233
POWER TO THE PEOPLE!

 

box is the best destination for your orders, 70%+ of the times u get price improvement...not a chance u gonna get filled inside the mkt at philly or ise.