Intermarket sweep order: Difference between revisions
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'''Intermarket sweep orders''' ('''ISO''') is a type of [[Order (exchange)|stock market order]] that sweeps several different market centers and scoop up as many [[shares]] as possible from them all.<ref>{{cite web |url=http://www.complinet.com/file_store/pdf/rulebooks/NASD07-39.pdf |title=FINRA ISO Reporting Rules |publisher=[[FINRA]] |date=February 4, 2008}}</ref> These work against the order-protection rule under [[regulation NMS]]. |
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For example, if a [[trader (finance)|trader]] is trying to buy 1000 shares of X, and there are 100 shares of X being offered at $1 at one [[Stock exchange|exchange]] and 2000 at $1.10 at another exchange, the order protection rule would let you buy ONLY those 100 shares at $1, after which you would need to send in other orders. With the ISO, you can buy the 100 shares at $1 and the remaining 900 at $1.10 on the other exchange subsequently.<ref>{{cite web |url=https://www.sec.gov/divisions/marketreg/nmsfaq610-11.htm |title=SEC NMS Rule FAQ |date=April 4, 2008 |publisher=[[Securities and Exchange Commission]]}}</ref><ref>{{cite news |url=https://blogs.wsj.com/marketbeat/2010/05/07/accentures-flash-crash-whats-an-intermarket-sweep-order/ |title=Accenture's Flash Crash: What's an "Intermarket Sweep Order" |publisher=The Wall Street Journal |date=May 7, 2010}}</ref><ref>{{cite news |url=http://www.minyanville.com/businessmarkets/articles/flash-crash-apple-cause-reasoning-wonderland/6/30/2010/id/28982?page=full |title=What Actually Happened During the Flash Crash |publisher=Minyanville |date=June 30, 2010}}</ref><ref>{{cite web |url=https://ibkr.info/node/1734 |title=Interactive Brokers Online Knowledge Base - Intermarket Sweep |publisher=[[Interactive Brokers]] |accessdate=July 30, 2018}}</ref> |
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==References== |
==References== |
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[http://www.batstrading.com/resources/features/bats_exchange_definitions.pdf BATS Exchange Order Types and Definitions] |
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[http://www.complinet.com/file_store/pdf/rulebooks/NASD07-39.pdf FINRA ISO Reporting Rules] |
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[http://www.sec.gov/divisions/marketreg/nmsfaq610-11.htm SEC NMS Rule FAQ] |
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[http://blogs.wsj.com/marketbeat/2010/05/07/accentures-flash-crash-whats-an-intermarket-sweep-order/ WSJ: Accenture 'flash crash' and Intermarket Sweep Orders] |
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[http://www.minyanville.com/businessmarkets/articles/flash-crash-apple-cause-reasoning-wonderland/6/30/2010/id/28982?page=full Minyanville: How ISO's May Be Used as Predatory Trading Tactics] |
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[[Category:Stock market]] |
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Latest revision as of 12:13, 30 January 2024
Intermarket sweep orders (ISO) is a type of stock market order that sweeps several different market centers and scoop up as many shares as possible from them all.[1] These work against the order-protection rule under regulation NMS.
For example, if a trader is trying to buy 1000 shares of X, and there are 100 shares of X being offered at $1 at one exchange and 2000 at $1.10 at another exchange, the order protection rule would let you buy ONLY those 100 shares at $1, after which you would need to send in other orders. With the ISO, you can buy the 100 shares at $1 and the remaining 900 at $1.10 on the other exchange subsequently.[2][3][4][5]
References
[edit]- ^ "FINRA ISO Reporting Rules" (PDF). FINRA. February 4, 2008.
- ^ "SEC NMS Rule FAQ". Securities and Exchange Commission. April 4, 2008.
- ^ "Accenture's Flash Crash: What's an "Intermarket Sweep Order"". The Wall Street Journal. May 7, 2010.
- ^ "What Actually Happened During the Flash Crash". Minyanville. June 30, 2010.
- ^ "Interactive Brokers Online Knowledge Base - Intermarket Sweep". Interactive Brokers. Retrieved July 30, 2018.
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