You think? maybe they are more afraid of losing volume to other exchanges? I don't know..I wish I did! I see the BOX is closing in on 10% mkt share.
The right thing for ISE to do is to use the fee to upgrade their systems. And then reduce the fee once their system can handle large traffic. The fee makes some sense as it's fair in that if you use more you pay more. But the current cancel fee is too high.
Top of page 2 has SEC comment page for cancel charges coming to an exchange near you. Good luck all, in tomorrow's trade.
=========== Have to look into it some more, dont like user fees raised; usually that 's another name for a stinking tax increase. However TaTrader makes some good points and ISE is one of the better ones; try those links later maybe, they arent working except SEC link. However that can be counterproductive to cancel too quick, when splitting bid ask, ; especially liquid options.
======= Wilburbear; Still cant get that link to work, but had typed in /clicked several times; iseoptions.com, top of page click ''regulatory'', click rule changes. I wrote all 6 exchanges against the day order cancel/expire fees, good risk reward on stamps & paper; but ISE,BOX,CBOE all as a rule give me pretty good fills.And PHLX,PSE do limit orders some also . If you read it thoroughly ISE is doing this simply because of institutions splitting up thier orders to try avoid some cancel fees now; which is taking up quote ''bandwidth'' ISE is above thier 50 day moving average. 5 to 1 ratio cancel fee seems fair; dont cancel 5 to 1 that much now.
1. This will most likely become an industry norm. 2. It has nothing to do with institutional order splitting. Splitting is done to get midpriced trades. Half at .50 cents and half at .55 to average .525 .. this has nothing to do with the rule change. Plus these are fills. 3. It would only impact a very small number of firms and they really don't provide any liquity because they actually have ratios much higher than you can image. 5 to 1 or even 10 to 1 would be a relief. These are firms(or CMTA's for nonmember firms) that have absurd users. 4. I work for the ISE where I run education. Feel free to email me directly ajacobson@iseoptions.com