zorkfin

The Future of Flashed Options

There are too many conspiracy theories here. Since each exchange does its own thing I will concentrate on the one I know best, ISE. The trigger for the flash order is the existence of a better price at a remote exchange. Without it, the customer would get a worse execution at ISE. Since there are multiple market makers and regular members at best price which receive the order simultaneously, everyone trying to act on it takes a risk, especially since the order is outside their parameters for that option at that time. It would not pay to try to game the system.