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just 21, Internalization is simply when a broker trades against it's customer orders there are two types of internalization: 1) On the floor - it happens all the time and there are facilitation rules for this kind of trading 2) Off the floor - over the counter market...

yes, the CBOE is quick to cancel as long as your market is posted. However, it can take several minutes for them to post your bid/ask if you are improving the market so be careful

experience. 1) look at the quantity (if it is different than all the other options then it may be a customer order) 2) look at the spread of the option at the CBOE (if unusally tight then one side is probably a client order) Not that it matters really who is on the bid/ask but the...

ABP - Automated Book Priority It means that if there is a customer order on the best bid/ask and the market is NOT locked/crossed then you will be able to trade against this order via the CBOE's RAES system. Generally these are the best type of orders to trade as the spread in the...

what we want is exactly what we are getting. It is a slow process but we are finally getting better access to the option customer order book. More auto executions! Look at what William Brodsky of CBOE said recently, "While we had pioneered that in the area of retail order flow," he...

sounds all too familiar. we would always ask ourselves, "why would they send those crooks orders?" I guess there is no shortage of "dumb money".

that is technically a "trade through" which is not suppose to happen. With or without OptEx, it happens, guys get caught, etc With more orders being crossed, the chances are better that these "trade throughs" occur. So, in this sense, it may be a concern but only if guys are not...

getting "picked" off - WHAT a joke!! When I was a market maker I was very happy when someone traded my markets - that is, how I'm suppose to make my living (trading the spread)!!! If a market maker has an incorrect price and the market is locked/crossed as a result then their auto...

how lucky??? ask yourself, why was the seat price so high in the first place?? ANSWER: Beacause they have been screwing the retail customer for YEARS!! During these years, everyone and his uncle was making money. The collusion on the floor was/is unbelievable. In any other business...

I believe the ISE is the same as all other Exchanges. Their members own the Exchange. I believe the current chairman Bill Porter, is also the founder. Thier seats are in high demand (unlike the other Exchanges) with a CMM seat (not a PMM) going for $1.6 mil recently. How does that...

ABP will not allow quicker cancels at the CBOE but cancels at the CBOE are generally instant as long as your already in the customer order book. The problem is it can take several minutes to get on the book at the CBOE if you are IMPROVING the market. As a test - if you get on THEIR market...

here is two more: 1) The CBOE in the last week has rolled out ABP for all equity options. ABP allows customers to trade directly against customer orders at the CBOE via RAES (their auto-x system) 2) Customer order match is also coming to the PHLX. This is something Timber Hill (a...

fair enough. I personally believe that it will only help traders such as myself. All indications are that this order routing would be done in such a way to avoid the unfriendly Exchanges which hold orders, move quotes etc - similar to the way IB routes orders. As a result it means less...

what is your point?? what concerns??? (concerns that don't already exist) The orders still have to go the Exchanges and once there SLK-Hull must abide by each Exchange's facilitation rules!! You will never be able to eliminate principal traders from taking a peak at the order, but...

I spoke with someone at Goldman today who told me the orders would have to be executed on the Exchanges. I doubt he is wrong. Currently most orders, from dumb customers get looked at by someone and now Schwab's is simply going to Goldman and that is why it is meaningless. If it wasn't...

a couple of points from research I have done: 1) the trades would still go to the Exchanges where internalization can occur at the NBBO 2) Each Exchange has different facilitation rules. I believe the floors (CBOE, PHLX, AMEX and PSE) have to expose the client side of the trade to the...

It doesn't appear to be an OTC market but simply an order router which if the case then it is meaningless to say the least!!!!

just21, are you sure??? In the press release it states, "The OptExSM system uses advanced technology to scan the entire options marketplace, and route orders automatically based on the best price available nationwide and other execution quality factors. This “hunt and seek”...

Is OptEx simply software that is designed to route your order to the best option market?? Why would other retail brokers care about this? (since they have their own BEST execution software) what am I missing?

I've been told that the PHLX will also be making some favorable changes in the next few months. It's nice to see some justice being served! (One step at a time)