Nasdaq Futures, Inc. (NFX) brings a competitive mix of new products, fees, innovative technology, and clearing services designed to meet the needs of ambitious traders.

Traders Turn to Nasdaq When They Hear These Words

Delays in last sale prices can result in missed opportunities and lost profits. In the stock market, timing is everything.

See How Commodities are Trading Today

The PwC Annual Corporate Directors Survey provides insight on the “The Good,” “The Bad” and “The Ugly” boards face.

Page Metadata
U.S. Options

ISE Complex Orders

Trade smarter and more efficiently with ISE’s innovative technology enabling market participants multi-legged strategies for complex, buy-write and delta neutral orders

ISE Complex Orders

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 including Complex Order, buy-write and delta neutral orders. This fully electronic order book was launched in 2003 and now offers immediate spread execution in over 3200 products.

ISE provides additional venues for sourcing liquidity for the equity leg of stock option orders including buy-writes and delta neutrals. These destinations deepen liquidity and increase fill rates for stock option orders without incurring any leg risk. Through ISE’s relationship with stock execution venues, we offer our members the opportunity to transact with liquidity in the ISE Simple Order Book and stock liquidity at ATS venues and lit markets, providing the opportunity to “leg” a tied order with no leg risk to the entering firm.

ISE Complex Order spreads offers:

OPTIONS ONLYBUY-WRITES AND DELTA NEUTRALS
Simple OrdersSimple Orders
Facilitation OrdersFacilitation Orders
Solicitation OrdersSolicitation Orders
PIM OrdersPIM Orders

Advantages

  • Automatic Execution
  • Access to the ISE Complex Order Book spreads
  • Legging into the order book without leg-in risk
  • Multiple stock leg execution venues for increased liquidity and flexibility
  • ConvergEX
  • KCG
  • Implied Orders

ISE Complex Order Spreads Supports

  • Up to 10 legs, including stock or ETF
  • Max ratio 3:1
  • Orders and executions in pennies
  • Market and Limit Orders
  • IOC, FOK, Day, GTC, GTD Orders
  • Reserve Orders
  • Spread Auctions
  • Stock Give Up, including post-trade allocation
  • Buy-Write and Delta Neutral orders available in over 3000 products

Price Protections

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 $.05 on any leg).

DNTT orders:

  • Are allowed for regular complex and with stock orders, including exposure (Complex Auction Orders).
  • May be limit 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 Market data (MDI) messages, including total DNTT size.

Will rest on the complex orderbook (excluding IOC or FOK orders) until executable.


Enhanced Complex Order Price Protections

Vertical spreads will not execute at a net price greater than intrinsic value (higher strike price minus lower strike price), with a buffer*

  • Orders entered with a limit price greater than intrinsic value will be rejected
  • Market orders to buy will not leg into the regular order book at a net price greater than intrinsic value
  • Vertical spread buffer: lesser of $1.00 or 5.0%
    • For example: an August 20 / 25 vertical call spread will not execute at a price greater than $5.25
  • Calendar spreads will not execute at a negative price, with a buffer*
  • Orders entered with a negative limit price will be rejected
  • Sell market orders will not leg into the regular order book at a negative net price
  • Calendar spread buffer: maximum of ($0.02)
    • For example: a Sell market order calendar spread will trade at a price no less than ($0.02)

Fees

Execution fees for Complex Orders set forth in ISE’s Fee Schedule apply to the options portion of stock-option combination executions and 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 at the following rates:

  • ConvergEX:
    $0.0007 per share per side, $50 maximum
    Trades that leg into the market: $0.0005 per share per side
  • Knight Link (KCG):
    Free

At cost, if applicable on all venues:

  • SEC Section 31 fees
  • NASD Trading Activity fee
Note: These rates are current, and are subject to change without notice.

How to Sign Up

ISE supports routing the equity leg of with stock orders to the following destinations:

  • ConvergEX
  • KCG

Members can enable all destinations or choose a subset. ConvergEX is required.
Member firms can designate routing logic preference or rely on ISE’s defaults.

Step 1

If you are already enabled for ISE stock-option functionality, please complete the Stock Routing Change Request Form to request additional destinations.

If you are not yet enabled for ISE stock-option functionality, please complete the following documents:

Step 2

Upon receipt of the completed Stock Routing Change Request Form, additional documentation may be required depending on the firm’s status with the venue(s).

To find out if you are already a member of any or all of these venues, please contact Nasdaq ISE Business Development at bizdev@ise.com.

Step 3

The required document(s) should be completed and signed by an individual in your firm with appropriate signing authority. Please return the completed document(s) to:

bizdev@ise.com
Nasdaq
60 Broad Street
New York, NY 10004
Phone: (212) 897-8171
Fax: (212) 425-4926

Once the ISE and stock routing venue legal departments have reviewed and approved the documentation, your firm can be activated for Buy-write and Delta Neutral strategies. An additional software download is not required for Nasdaq Precise users. Tied to Stock orders may be entered using the With Stock Order ticket.

Once the ISE and stock routing venue legal departments have reviewed and approved the documentation, your firm can be activated for Buy-write and Delta Neutral strategies. An additional software download is not required for Nasdaq Precise users. Tied to Stock orders may be entered using the With Stock Order ticket.

News & Alerts

Subscribe to receive Nasdaq Alerts

Scroll up