think this will cause a problem trading the qqq? I watch island religiously when I trade it -
9/20/02
Important Information regarding changes in Island's handling of orders for
Exchange Traded Funds (ETFs)
In order to comply with SEC actions, Island will no longer display orders for some
Exchange Traded Funds (ETFs). Island feels this action must be taken to maintain
order execution quality.
Beginning Monday, September 23rd 2002, orders for QQQ, DIA, SPY, SMH & MKH
routed to Island will be treated as "non-display". This will affect limit orders
routed through "Intelligent" that ultimately are routed to Island, as well as orders
that are routed directly to Island.
For more information, please see Island's web site:
island.com
Message to Island Subscribers
September 19, 2002
Changes in Island ETF Business
Thanks to you, the subscriber, Island has become the largest and most liquid
marketplace for trading Exchange Traded Funds such as QQQ. Given the
efficiency and size of the Island market, our order book data has become a critical
piece of information for any trader active in QQQ and its component securities.
Unfortunately, due to recent regulatory actions taken by the U.S. Securities and
Exchange Commission, Island will no longer be able to disseminate its order book
information in QQQ, DIA, SPY, SMH and MKH beginning on September 23, 2002.
(For more information on the specific impacts of this action, please visit FAQ).
Until recently, the SEC had given Island the choice of whether to participate in the
National Market System by providing what was effectively an exemption from
complying with certain SEC rules. The SEC, however, is withdrawing this
exemption, and has given Island a Sept. 23 deadline for participation in the NMS.
As you know, Island has always shared its order book information, both with
subscribers over ITCH and with the general public through BookViewer, and
Island even permits unfettered re-distribution of its market data. Island has long
sought to have its order book in listed securities included in the Consolidated
Quotation, and has put forward several suggestions to achieve this goal.
Unfortunately, under the current regulatory structure, there is no mechanism for
including Island’s order book information in the Consolidated Quote without
negatively impacting execution quality.
Over the coming months, the issues surrounding this change will be the subject
of industry meetings hosted by the SEC. As always, Island will consult with its
subscribers to determine what will best serve their needs. Moreover, Island looks
forward to working with the SEC and the U.S. Congress to revise the current
regulatory structure so that Island can again disseminate its subscriber order
information in all securities.
To assist us in this effort, we request that you sign the Island Testimonial (PDF,
5.4k) (if you have not already done so) and fax back to 212-231-5069, or send
us your own letter regarding your ability to use Island to obtain quality
executions. Island is committed to working on your behalf to operate the most
efficient, liquid and transparent market possible. We look forward to working with
you in the months ahead.
For more background on this issue: ETF Explanation (PDF, 14K) |
