Midpoint MatchTM
P R O D U C T
H I G H L I G H T S
Quick Links†
What is Midpoint Match?
Available Products
• Trading/Product
Listings/Stocks/ISE
Commissions
• Fees/Commissions/Stock
ETFs and Warrants
Margin
• Trading/Margin/Stocks
The International Securities Exchange (ISE) Stock Exchange, LLC offers its
Midpoint Match facility that allows US stock traders and investors to buy or
sell at the average of the bid and ask price instead of having to buy at a higher ask price and sell at a lower bid price. This unique matching platform furthers the quest of professional traders and investors to minimize their trading
costs. Customers choosing IB SmartRoutingSM will automatically be able to
take advantage of Midpoint Match as an additional routing destination for
price improvement.
SmartRoutingSM
• Trading/Order Info/Order
Routing Logic/U.S. IB
SmartRouting
† Link names are the navigation
sequence through the IB
website menu bar located at
the top of every IB web page.
As is illustrated in the above hypothetical transaction, the
market-maker or specialist is eliminated, and the buyer and
seller would each save $0.015 per share.
What Benefits does Midpoint Match Provide?
• Continuous, instantaneous, and fully automated
• Complete anonymity
• Minimizes market impact
• No restrictions on maximum trade size
• No pre-set timed crossing
• NYSE, NASD, and AMEX stocks and ETFs available
• Access to non-displayed liquidity
• Two types of orders; Standard and Solicitation of Interest (SOI)
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Midpoint MatchTM
P R O D U C T
H I G H L I G H T S
How does Midpoint Match Work?
With IB SmartRoutingSM
The IB SmartRouter probes the ISE Stock Exchange for available price improvement. The IB SmartRouter
will determine if a marketable order will be routed ISE, or to a conventional exchange/ECN, based on order
and market information, including:
• Size of the order relative to the NBBO size
• Price of the order relative to the NBBO price
• NBBO width
With ISE Stock Exchange Directed Orders
Both ISE Midpoint Match order types, Standard and Solicitation of Interest (SOI) are supported by IB:
• Standard orders are non-displayed and can be entered as market or limit orders. Market orders
execute at the NBBO midpoint whenever there is an eligible contra-order. Limit orders only execute
whenever the available midpoint price is better than the limit price.
• SOI orders are fill requests broadcast to ISE Midpoint Match users. SOIs have the advantage of a
higher execution priority against any incoming orders, but must have a minimum quantity of 2,000
shares. These orders may not be cancelled for several seconds while the ISE solicits interest.
• No odd lots will be accepted for either order type.
• Market orders and limit orders may be denominated in penny increments, with executions occurring
in whole cent increments, or 1/2 cent increments whenever a 1/2 cent increment is the midpoint. The
Midpoint Match facility does not support executions below $1 per share.
• Native Immediate-or-Cancel (IOC) orders are also supported for both Standard and SOI orders.
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