How to Access the Auction and Electronic Market Integration (AEMI) Equity Trading Platform
Regular Member firms and Associate Member firms with an optional Electronic Access Membership may route orders to the AEMI equity trading platform, or to a floor broker through the Booth Automated Routing System (BARS). Access to AEMI from off-floor will be provided through two means including the existing Common Message Switch (CMS) and the Financial Information eXchange (FIX) interfaces.
For questions regarding FIX connectivity please refer to the FIX Connectivity Section.
- Division or Subsidiary of Member Firms
A division or subsidiary of a Regular Member or Associate Member firm with an optional Electronic Access Membership is allowed to access AEMI under the parent firm's membership provided the division or subsidiary is not a separate legal entity from the parent.
If a division or subsidiary is a legal entity in its own right, it will not be granted access until Amex membership requirements are satisfied.
- Service Bureaus
Service bureaus may connect to AEMI through CMS and FIX. Actual access to the order processing systems of the Amex must be requested by a valid Amex member firm, not the service bureau. The Amex member firm, not the service bureau, has the responsibility under Amex Rule 411 to "use due diligence to learn the essential facts relative to every customer and to every order." Further, the Amex member firm, not the service bureau, is fully responsible, under Amex Rule 128, for any trade which results from an order sent to the Amex using the member firm's mnemonic(s).
- Non-Members
Firms that are not members of the American Stock Exchange may route orders to AEMI or BARS through a valid Amex Member Firm as the Amex member's customer. In this case, the Amex recognizes the order flow to be that of the Amex member and the Amex member is held accountable and liable. The Amex member firm, not the non-member, will be fully responsible, under Amex Rule 128, for any trade which results from an order sent to the Amex using the member firm's mnemonic(s).
Under Amex rules, each member is responsible for knowing its customers. The Amex member firm has the responsibility under Amex Rule 411 to "use due diligence to learn the essential facts relative to every customer and to every order." Further, under Amex rules (including Rule 153), the Amex member firm must maintain records of orders.
How to access AEMI through CMS
Please contact Shirley Thompson of the Amex's Market Operations department at 212-306-1161 for any questions concerning CMS connectivity and the administrative requirements .
For questions regarding Common Message Switch (CMS) interface requirements please contact Jim Wieman of SIAC's CMS support staff at 212-383-7106.
Modifications once connectivity to the Amex through CMS Is established
Modifications to CMS in support of the AEMI equity trading platform are detailed in the following Amex Notices:
Requirements for Accessing the AEMI Equity Trading Platform (aside from being a valid member of the Amex)
- Clearing and Comparison
The requesting firm must either be a valid clearing firm (self clearing) on the Amex, or have an arrangement with another firm that is a valid clearing firm on the Amex to compare and/or clear trades resulting from orders routed through Amex systems.
If the requesting firm is not self clearing, its Amex clearing firm must submit a letter stating that it will be acting as clearing agent for the requesting firm and accepts responsibility for the comparison and/or clearance and settlement of all transactions resulting from orders entered by the requesting firm under an identified mnemonic. A separate letter is required for each entering mnemonic requested by the entering firm unless the mnemonics are added at the same time, in which case one letter can specify all of the mnemonics.
- Intraday Comparison for Equities (IDCE)
The requesting firm, or its designated clearing agent for comparing and/or clearing trades, must have access to IDCE.
- Trading Floor Representation
Amex Rule 724 states that member organizations that do not have an associated member on the trading floor shall be deemed to have appointed the member used to execute its orders as its agent to resolve questions and sign DKs relating to those orders. The long-standing policy is that the requesting firm must identify a member with a physical presence on the trading floor (other than a specialist) to represent its order flow in the event there are questions or problems. This representative must be a member, not a clerk. This requirement is applicable to Associate Member firms with Electronic Access Membership. Regular Member firms must, under Rule 724, designate another member, in addition to the member who qualifies the firm, to act for the qualifying member when he or she is absent. The requesting firm should provide the name of the member on the trading floor, as well as the member's firm name. The member does not have to be affiliated with the requesting firm to act as its representative, but must be authorized to act on its behalf.
It is the requesting firm's responsibility to obtain a floor representative, and advise its representative of his or her responsibilities. In addition, the requesting firm is responsible for notifying the appropriate people at the Amex when their representative changes.
The requesting member firm must also provide the name and phone number of an order room/trading desk contact. This contact must have knowledge of orders routed to the Amex to assist the firm's floor representative and Amex service desk staff in resolving issues and/or providing clarification as needed. Please note: The Amex is not responsible for contacting a member firm's customers.
- DK/ROTN Room Representation
The requesting firm, or its designated clearing agent for comparing and/or clearing trades, must have a representative who can resolve out trades in the Amex DK/ROTN room. The requesting firm is responsible for making the necessary arrangements for this representation.
- Administrative Requirements
The requesting firm must complete the Request for Access to AEMI form. This form must be completed in its entirety and signed by an officer of the requesting member firm.
The original form must be hand delivered or mailed to the Amex in accordance with the instructions on the top of the form. If the requesting firm is not self-clearing, a letter from the firm that will be acting as clearing agent must accompany the form.
No requests will be processed without the required paperwork.
- Recommendation
It is recommended that one person at the member firm be assigned responsibility for processing requests for access to the Amex automated order processing systems, and that current records be maintained of all mnemonics used by the firm. Periodically, the Amex conducts audits of all mnemonics, requiring the firms to verify the information that the Amex has on file for each entering mnemonic. Having one person at the firm responsible for processing requests will make this less time consuming. It is also the requesting firm's responsibility to notify the Amex immediately when any information provided on the form changes, such as trading floor representative.
Processing the AEMI Access Request
After connectivity to AEMI has been established and testing is completed, firms must submit a completed Request for Access to AEMI form and, if applicable, a clearing agent letter. Upon verification of the information provided, the Amex will contact the firm with the date it may begin routing orders. Normally, this process takes from one to three business days after receipt of the request form and, if applicable, a clearing agent letter.
Multiple Order Entry Mnemonics
Each mnemonic requested requires a completed Request for Access to AEMI form and, if applicable, a clearing agent letter. If at all possible, firms should limit the number of mnemonics requested by segregating their business through the use of different branch codes (terminal IDs).
Using NYSE Order Entry Mnemonics
For further details, please refer to the following Amex Notice:
Equities and Options Clearing Agents
If your firm is not self-clearing, a separate clearing agent letter is required from each clearing firm.
What are the differences between using CMS and using FIX?
The differences between orders being sent using CMS or directly using FIX are twofold. First, FIX customers should notice considerably faster turnaround times compared with CMS, of up to one second roundtrip. Second, some features will be offered to FIX users only. For the initial rollout, this includes the six electronic cross order types, Hit or Take orders, and manually handled order types with specific execution instructions which are directed to the booth (Not Held, Prospectus, 144, 145, Company Buyback). The Intermarket Sweep Order (ISO) is the only new order type that will be offered to CMS users.
CMS Contacts
Call the Amex or SIAC contacts listed below.
CMS Connectivity - FCS Formats
Shirley L. Thompson
212-306-1161
Peter Fetiak
212-306-1472
CMS Interface/Lines
Jim Wieman
212-383-7106
Amex Membership
Sonia Stewart
212-306-1413
John Cunningham
212-306-1419
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