Intermarket Sweep Orders
Chapters in this video
What this video covers
- What an intermarket sweep order is: a limit order for an NMS stock with two required routing steps
- Why an ISO must be a limit order, and why a market order cannot qualify
- Why marking the main order alone is not enough, and why every companion order must carry the same ISO mark
- How sell orders target protected bids and buy orders target protected offers priced superior to the sweep's own limit price
- What “as necessary” means when no protected quotation is priced better than the sweep's limit
- Why accompanying orders must reach the full displayed size, excluding undisplayed or reserve interest
- Why the routing trading center, broker, or dealer bears the reasonable-steps duty rather than the receiving venue
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