ISE today announced that KCG, an independent execution-only trading firm, has enhanced its execution capabilities for the stock component of multi-legged options strategy orders. These enhanced execution capabilities access liquidity directly from the equities exchanges, whereas previously, orders were sent only to alternative execution destinations, such as dark pools. As a result of this enhancement, fill rates for multi-legged options orders that include stock have increased.
“ISE has continually committed to providing our members with industry-leading capabilities for trading multi-legged strategy orders,” said Boris Ilyevsky, Managing Director of ISE’s options exchanges. “By building the functionality to access the lit markets, KCG has become one of our lead routers for stock executions and improved the execution quality for ‘with stock’ orders, such as buy-writes and delta neutral orders.”
Charlie Susi, head of electronic trading and execution product development at KCG, said: “In partnership with ISE, we built a customized algo trading solution for their clients that applies our deep market microstructure experience, low latency infrastructure and nuanced order management logic. We’re very pleased that it has been performing so well for their clients’ orders.”
In October 2012, ISE expanded its ‘with stock’ execution capabilities by adding new stock execution destinations, resulting in higher volumes. ISE’s unique smart-routing capability has allowed member firms to select one or more of these destinations for their stock leg execution and to specify the routing priority of these venues, or to default to ISE’s routing logic, which automatically routes stock orders to the most cost effective destination. For more information on ISE’s industry-leading functionality for executing multi-legged strategy orders, please visit www.ise.com/spreads.