Nasdaq ISE (ISE) Complex Order spreads represent innovative technology that enables all market participants to trade smarter by providing efficient and liquid markets for multi-legged strategies. This fully electronic order book was launched in 2003 and now offers immediate spread execution in over 3,000 products.
ISE provides additional venues for sourcing liquidity for the equity leg of Stock-Option Orders and QCC with Stock Orders including buy-writes and delta neutrals.
ISE Complex Order spreads offers:
Tied to Stock
Interaction with ISE Complex and Regular Order Books
Interaction with ISE Complex Book
Exposure Auction Orders
Exposure Auction Orders
Qualified Contingent Cross
Qualified Contingent Cross with Stock
Access to the ISE Complex Order Book spreads
Legging into the regular order book (options-only strategies) without leg-in risk
Implied Orders enable additional interaction with the regular order book
Execution of equity legs of Stock-Option Orders via Cowen (formerly Convergex)
Execution of equity legs of QCC With Stock orders at multiple venues
ISE Complex Order Features
Up to 10 legs, including stock
Max ratio for options legs 3:1
Max options-to-stock ratio 8:1
Orders and executions in pennies
Market and Limit Orders
IOC, FOK, Day, GTC, GTD, Opening Only Orders
Post trade allocation, including stock leg PTA/give-up
Stock-Option Orders available for all equity symbols
Combo market data feeds
Do Not Trade Through (DNTT) Functionality
DNTT orders will not trade through away market prices on any leg. DNTT orders trade at or better than NBBO on each leg (both option and stock legs). Orders not marked as DNTT will continue to be eligible to trade through away market prices (up to $0.05 on each leg).
Are allowed for options-only Complex Orders and Stock-Option Orders, including exposure (Complex Auction Orders)
May be Limit Orders or Market Orders, any time validity, and any client category
May be modified, including changing DNTT to non-DNTT, and vice versa
Are reflected in top of book market data messages, including total DNTT size and total DNTT market order size
Will rest on the complex order book (excluding IOC or FOK orders) until executable
SPREAD PRICE PROTECTIONS
ISE offers price protections for vertical and calendar spreads.
Maximum Spread Price Protection Limit
The difference between the higher strike and the lower strike, with a buffer (lesser of $1.00 or 5.0%).
Minimum Spread Price Protection Limit
Zero, with a buffer ($-0.02).
Orders entered with a limit price above the maximum or below the minimum spread protection price will be rejected.
Orders entered with a limit price below the minimum spread protection price will be rejected.
Market Orders to buy will not execute at a net price greater than the maximum spread protection price.
Market Orders to sell will not execute at a net price below the minimum spread protection price.
Market Orders to sell will not execute at a price below the minimum spread protection price.
Execution fees for Complex Orders set forth in ISE’s fee schedule apply to options legs as well as the equity leg of Stock-Option Orders that trade in the complex order book. Additional charges for stock executions are billed on your ISE monthly statement. Rate per share, per side may be found on the ISE Official Fee Schedule.
Additional fees may apply and be billed by the equity venue (e.g., SEC Section 31 fees, NASD Trading Activity fee).
ISE supports routing the equity leg of Stock-Option Orders to Cowen, and the equity leg of QCC with stock orders to Cheevers, Libucki, and Fog.
If you are not yet enabled for ISE tied to stock functionality, or if you are enabled but wish to request additional business units or routing destinations, please contact Nasdaq Membership: