ISE options exchange proposes new, punitive rules for active traders

[rabmanducky]

well I think the author was suggesting that these fees would be viral among the other exchanges. I wish these guys would just leave it alone, and let people trade. Focus more on faster execution and finding more depth and liquidity for traders. Not ways to increase fees to discourage traders and decrease liquidity.

Quote from Tums:

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

 

[wilburbear]

Quote from hedgeyourbets:

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

E-mail her if you wish, but don't fail to comment to the SEC. That's what might stop the rules against active traders. An e-mail to the ISE will only get deleted by the people who want the rule.

 

[wilburbear]

Quote from Bitstream:

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.

BOX is an example of an exchange that doesn't charge a cancel fee. Because they are unnecessary on the BOX, it makes me wonder about the legitimacy of these fees on other option exchanges.

 

[2cents]

Quote from Bitstream:

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.

thanks, good to know. am going to take a closer look actually... want to get a feel for pricing and liquidity of DITM options on a couple of very liquid options mkts / underlyings... not an easy area i'm told... any pointers much appreciated!

 

[Bitstream]

Quote from 2cents:

thanks, good to know. am going to take a closer look actually... want to get a feel for pricing and liquidity of DITM options on a couple of very liquid options mkts / underlyings... not an easy area i'm told... any pointers much appreciated!

yw. mind u that u get price improvement very often because it is the only exchange that quotes options in decimals...i cant recall how many times i got 2-5c or better improvements on box...try to route direct, it saves u money.

 

[Option Trader]

Quote from Bitstream:
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.

It would seem 70% is explanable because of the smart routers choose BOX only when there is price improvement available. What % offers price improvement when YOU route direct to Box?

 

[Bitstream]

Quote from Option Trader:

It would seem 70% is explanable because of the smart routers choose BOX only when there is price improvement available. What % offers price improvement when YOU route direct to Box?

those stats were published in box website no long ago. besides is the only exch with a price improvement auction in pennies so it is sure more likely to get a better price there.

 

[wilburbear]

Quote from rufus_4000:

The document describes a "professional account holder" as some entity (individual trader or otherwise) that places 100 options orders for 2 or more days in a row. While this seems to be a clear grab for bette order position by the broker / dealers (most of whom are at least EAM for ISE), and for more fees. This rule would also apply to most hedge funds, as hedge funds are generally not registered as broker / dealers, and would frequently place more than 100 option orders. In my opinion, this proposed change would group hedge funds and active traders in the same category.

It's a grab for customer profits using the rule book. If the SEC approves such a thing against the public............. Well, let's just say that will be a sad day.