May 31, 2006
I am an equity option and stock trader that is incredibly frustrated with the limitations ISE is trying to inflict on traders. IT seems that ISE is simply trying to deter traders from being successful while trying to make a good living. How can ISE justify charging fees for cancelled orders when they cannot guarantee fills within some specific time frame or price? The whole idea of ISE implementing this rule is to make it harder, or even impossible, for customers to make trades and get fills while giving their market makers more of an edge. Success or being successful is not something that should be punished. Is the goal of America as a country to allow us the freedom to be successful, within the rules and regulations?
The reason given for the implementation of this rule is that all the cancelations are clogging their system. This explanation is just an excuse for the SEC to pass regulations to hamper customers and benefit the ISE market makers. The passing of this rule will diminish the amount of traders who can even post bids and offers at the ISE. More importantly, it limits competition, and arent the markets we trade on built for competition? Isnt it ideal to have a perfectly competitive market?
In conclusion, the rule that ISE has proposed will not be for the benefit of the market, and it is not even its purpose. The purpose of this rule is to hamper competition and what customers can do while allowing market makers to gain more edge without ample competition. We ask the SEC to not allow the ISE to punish the successful and take the competition out of the marketplace. Thank you for your time.
Sincerely,
Joe Tassone
Equity options trader