Qualified contingent cross

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A qualified contingent cross (QCC) is a type of block trade facility that was requested by the ISE and approved by the SEC staff in August 2009. The orders are multi-leg trades that involve both stocks and options. The QCC allows institutional brokers to cross these orders electronically without exposing them to the market, as long as they are for at least 1,000 contracts and the order is priced at or better than the National Best Bid or Offer (NBBO).[1]

The SEC approved ISE's proposal for the order type in 2009, but the launch was delayed after the CBOE filed a petition asking the SEC to review the matter more fully.[2] The SEC gave its final approval in February 2011 and ISE launched the qualified contingent cross on Feb. 28.

References

  1. ISE Wins Block Trade Battle With Rival Options Exchanges. Bloomberg.
  2. Options Industry Leaders Discuss Current Regulatory Issues. Futures Industry Magazine.