Nanex ~ 27-Nov-2013 ~ ISO Trades
In an April 21, 2010 comment
letter to the SEC, the High Frequency Trading firm Tradeworx exposed unfair
practices related to order anticipation and ISO's (Intermarket Sweep Orders). Pages 17 and 18 are shown below and pretty much, speak for themselves.
Fast forward 3.5 years later, the percentage of trades from ISO orders remain at a steady 40% of all trades in
On September 26, 2013, there was a disturbance in the percentage of ISO trades. This
is the same day that BATS-Y was offline for most of the day. You can see the impact
it had on ISO trades in the chart below.