ISE Proposes New Customer Category
Traders Magazine, May 2008
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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