Nanex Research

Nanex ~ 30-Oct-2013 ~ ISE Option Outage

Update: The ISE issued this press release later in the day. 

On October 30, 2013, the ISE options exchanges (ISEX and Gemini) had 2 outages at the same time. Maybe now would be a good time to bring up the fact that option quoting has spun out of control. Take a look at these metrics. When there are 600,000 option quotes from one stock in 1 second, and few trades, there is a serious price discovery issue for everyone processing option data. Maybe that is why the ISE failed this morning.

Outage times:

Exg Start Stop
ISEX 9:40:09 9:43:21
GEMI 9:40:28 9:43:07
ISEX 9:55:03 9:55:52
GEMI 9:54:35 9:56:06
1. Chart of all equity and index option trades color coded by reporting exchange between 9:35 and 10:12 on October 30, 2013.
Chart only shows prices between 0 and 100 for clarity. Bottom panel shows number of trades in each 2 second interval.

2. Charts of trades from just one options exchange.

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