Actually it is OK for the AMEX to ban this stuff because all of the autoquoted ETFs will move to an electronic platform (like Island). In addition, since the AMEX isn't an automated exchange, orders could be "held up" before a cancel; thus, it wouldn't be in the best interests for an entity who wanted to autoquote the ETFs to do it on the AMEX.
GTC options getting hung at IB...
- Thread starter ktm
- Start date
Good point. I didn't read it closely. I assumed that they were attempting to regulate those securities wherever they trade, not just on the Amex book. I recognize that trying to autoquote on an exchange's order system is futile, at least for the public
Still, the precedent exists for the ECNs to respect rules of the primary exchange where a security is listed. In particular, I'm referring to Island and REDIBook's cleanup of their short-sale handling to respect the uptick rule (in REDIBook's case) and prevent shorting below the previous close in Island's case. The fact that this happened just as Island joined the Cinci exchange, and as the REDI/ARCA exchange app is getting some attention again is, I'm sure, no coincidence.
Another good example is trade halts, which the ECNs respect also (well, kind of - they seem to find out about them too late).