Order Routing Disclosure Statement
An order submitted to OptionsHouse is directed to an electronic order router
that determines where the order should be routed to obtain the most
favorable execution. Each order is evaluated based on the type of security,
order size, and displayed shares at the NBBO to determine optimal routing.
OptionsHouse’s order routing seeks to identify price improvement
opportunities in options transactions through tools that indicate when a
high probability for price improvement exists. Attempts at price improvement
are only carried out when there is a high probability of the order being
accepted. When there is a low probability of price improvement acceptance,
orders are routed to the market(s) where there will be instantaneous and
automated execution at the NBBO.
Overall, the logic and criteria used by OptionsHouse electronic order
routing is designed to provide customers with access to the most favorable
price and liquidity available in the market.
OptionsHouse makes its order routing practices available to its customers on
a quarterly basis.