Order Routing and Order Flow 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.
OptionsHouse is required by the Securities and Exchange Commission (SEC) to disclose its policies with respect to payment for order flow. According to the SEC, payment for order flow may include monetary payment, reciprocal agreements, services, property, or any other benefit that results in remuneration, compensation, or consideration to a broker-dealer in return for routing of customer order flow and includes exchange rebates and credits.
OptionsHouse may participate in payment for order flow programs that result in OptionsHouse receiving remuneration, compensation, or consideration for directing orders to broker-dealers, exchanges and market centers for execution. The source and nature of such compensation received will be furnished upon written request.
OptionsHouse is committed to the best execution for our clients regardless of our participation in these programs.