Nasdaq ISE (ISE) and Nasdaq MRX (MRX) Complex Order spreads represent innovative technology that enables all market participants to trade smarter by providing efficient and liquid markets for multi-legged strategies.
ISE Complex Orders
This fully electronic order book was launched in 2003 and now offers immediate spread execution in over 3,000 products. ISE and MRX provide 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 and MRX Complex Order spreads offers:
Options Only:
Interaction with ISE and MRX Complex and Regular Order Books
Exposure Auction Orders
Facilitation Orders
Solicitation Orders
PIM Orders
Customer-to-Customer Cross
Qualified Contingent Cross
Tied to Stock:
Interaction with ISE and MRX Complex Book
Exposure Auction Orders
Facilitation Orders
Solicitation Orders
PIM Orders
Customer-to-Customer Cross
Qualified Contingent Cross with Stock
Advantages:
- Automatic Execution
- Access to the ISE and MRX 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 and MRX Complex Order Features:
- Price/time allocation
- 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
- Preferenced Orders
- Attributable Orders
- Spread Auctions
- Post trade allocation, including stock leg PTA/give-up
- Stock-Option Orders available for all equity symbols
- Combo market data feeds
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 $0.05 on each leg).
DNTT orders:
- 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 and MRX offers price protections for vertical and calendar spreads.
*Sell (Buy) market orders (and limit orders entered at a price within the range) can leg into the simple order book at a price higher (lower) than the maximum (minimum) protection range.
Fees:
Execution fees for Complex Orders set forth in ISE and MRX fee schedules 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 and MRX monthly statement. Rate per share, per side may be found on the ISE Official Fee Schedule and MRX Official Fee Schedule respectively.
Additional fees may apply and be billed by the equity venue (e.g., SEC Section 31 fees, NASD Trading Activity fee).
Stock-Tied Order Submission
ISE, MRX, and PHLX support routing the equity leg of Stock-Option Orders via Nasdaq Execution Services to TRF. Stock Leg execution is not supported for QCCs.
If you are not yet enabled for ISE, MRX, or PHLX tied to stock functionality, or if you are enabled but wish to request additional routing destinations, please complete the Stock Routing Authorization Form. Please contact Membership for more information.
Once Nasdaq has approved the required documentation, your firm can be enabled for Stock-Option Orders. Note that an additional software download is not required for Nasdaq Precise users.