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ISE Proposes New Customer Category

Traders Magazine, May 2008

Nina Mehta

The International Securities Exchange's recent big win in convincing the Securities and Exchange Commission to publicly notice its request that high-frequency trading by public customers get mandatory treatment as "professional orders" came as the ISE successfully ushered a "voluntary professionals" category past the SEC. In May 2006, the ISE asked the SEC to allow it to mandate that broker-dealer members identify orders from certain public customers as "professional orders." Those active, high-volume customers executing 390 or more trades per day (one trade per minute) would meet that definition and have their orders treated as broker-dealer orders with regard to execution priority and transaction fees. The SEC published that filing for comment in February, after a 20-month delay, and after the ISE in January filed an amendment to the original request, clarifying its plans.

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