Intermarket sweep order: Difference between revisions

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Intermarket sweep orders are limit orders that require they be executed in one specific market center even if another market center is publishing a better quote.^[1] That is, they disobey the order-protection rule. They are typically used by institutional algorithmic investors and not by individual investors.^[2] Intermarket sweep orders may have played a role in the May 6, 2010 Flash Crash.

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[1] NYSE glossary Intermarket Sweep Order

[2] A Sweeping Ball of (Trading) Confusion

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Revision as of 22:29, 12 May 2010 edit Rajah (talk \| contribs) Autopatrolled, Extended confirmed users, Pending changes reviewers 10,215 edits +link to May 6, 2010 Flash Crash ← Previous edit		Revision as of 16:15, 13 May 2010 edit undo Rajah (talk \| contribs) Autopatrolled, Extended confirmed users, Pending changes reviewers 10,215 edits +wikilinks Next edit →
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	'''Intermarket sweep orders''' are limit ~~orders~~ that require they be executed in one specific market center even if another market center is publishing a better quote.<ref>[http://www.nyse.com/glossary/1127471914434.html NYSE glossary Intermarket Sweep Order]</ref> That is, they disobey the order-protection rule. They are typically used by institutional algorithmic investors and not by individual investors.<ref>[http://online.wsj.com/article/SB10001424052748704292004575230603754961186.html?mod=WSJ_latestheadlines A Sweeping Ball of (Trading) Confusion]</ref> Intermarket sweep orders may have played a role in the [[May 6, 2010 Flash Crash]].		'''Intermarket sweep orders''' are limit [[Order (exchange)\|order]]s that require they be executed in one specific [[stock market\|market]] center even if another market center is publishing a better quote.<ref>[http://www.nyse.com/glossary/1127471914434.html NYSE glossary Intermarket Sweep Order]</ref> That is, they disobey the order-protection rule. They are typically used by institutional [[algorithmic investors]] and not by individual investors.<ref>[http://online.wsj.com/article/SB10001424052748704292004575230603754961186.html?mod=WSJ_latestheadlines A Sweeping Ball of (Trading) Confusion]</ref> Intermarket sweep orders may have played a role in the [[May 6, 2010 Flash Crash]].