Systems Information - Order Processing

Requirements for accessing the automated order processing systems at the American Stock Exchange are explained below in a question and answer format. For answers to questions not addressed here, call the Amex or SIAC contacts listed below.

How can I access the automated order processing systems of the Amex?
Who can access the automated order processing systems of the Amex?
How can I establish FIX Connectivity?
I already have connectivity to CMS. What is the next step?
In addition to being a valid member of the Amex, are there any other requirements for accessing the Exchange's automated order processing systems?
May I have more than one order entry mnemonic?
May I use the same entry mnemonic that I use to route orders to the NYSE?
May I have different clearing agents for equities and options?
Who do I call if I have questions?

How can I access the automated order processing systems of the Amex?
All orders must be sent by a member, be sponsored by a member or be on behalf of a member.

Access to the Amex's Reg NMS electronic trading platform AEMI, or the firm's floor broker through the Booth Automated Routing System (BARS) is available via the Financial Information Exchange (FIX) Protocol or the Securities Industry Automation Corporation's (SIAC's) Common Message Switch (CMS). The distinction between orders sent using CMS or directly via FIX is significant. First, FIX customers should experience considerably faster turnaround times compared with CMS. Second, some features will be offered to FIX users only, such as six electronic cross order types and Hit or Take orders.

For Financial Information Exchange (FIX) Protocol requirements for the Amex, contact Edward Hayes of the Amex Transaction Services department at 212-306-1962.

For Common Message Switch (CMS) interface requirements for the Amex, contact Jim Wieman of SIAC's CMS support staff at 212-383-7106.

Who can access the automated order processing systems of the Amex?
(1) Member Access
Regular Member firms and Associate Member firms with an optional Electronic Access Membership may route orders to the Amex's Reg NMS electronic trading platform AEMI or the firm's floor broker through the Booth Automated Routing System (BARS).

(2) Non-Members
With the sponsorship of a Regular Member firm, non-members may also access AEMI or BARS through via the Financial Information Exchange (FIX) Protocol or the Securities Industry Automation Corporation's (SIAC's) Common Message Switch (CMS).

Non-members may route orders through a valid member's system 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.

(3) Service Bureaus
Service bureaus may have connectivity to AEMI and BARS. Service bureaus must be members or be sponsored by members in order to access to the order processing systems of the Amex. Access must be requested by a valid Amex member firm, not the service bureau. And the Amex member firm, not the service bureau, will have 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, will be fully responsible, under Amex Rule 128, for any trade which results from an order sent to AEMI using the member firm's mnemonic(s).

How can I establish FIX Connectivity?
Customers have the ability to establish direct FIX connections or can send order flow via a service bureau. FIX service bureaus provide clients with a single order-flow connection to multiple marketplaces. In turn, the network operators aggregate FIX connectivity for multiple participants to the Amex community. The Amex is in the process of certifying multiple service bureaus. Already certified service bureaus include BRASS, Interactive Broker, FTEN and OES.

I already have connectivity to CMS. What's the next step?
See the Administrative Requirements section below.

In addition to being a valid member of the Amex, are there any other requirements for accessing the Exchange's automated order processing systems?
Yes. The other requirements are:

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) and/or Intraday Comparison for Options (IDC)
The requesting firm, or its designated clearing agent for comparing and/or clearing trades, must have access to IDCE in the case of equities, and IDC in the case of options.

Trading Floor Representation
Amex Rule 724 states that member organizations that do not have an associated member on the 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, 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/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 Amex Order File (AOF) form.

The 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.

May I have more than one order entry mnemonic?
Yes. Each mnemonic requested requires a completed Request for Access to Amex Order File (AOF) 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 (term IDs).

May I use the same entry mnemonic that I use to route orders to the NYSE?
Amex orders sent via FIX must have unique mnemonics that cannot be shared with the NYSE. If you send orders via CMS, you may use the same mnemonic For details, click on Availability of TCP/IP Connectivity for Amex Order Routing.

May I have different clearing agents for equities and options?
Yes. If your firm is not self-clearing, a separate letter is required from each clearing agent.

Who do I call if I have questions?
Call the Amex or SIAC contacts listed below.

Market Operations and Trading Floor Systems
Shirley L. Thompson
212-306-1161

Peter Fetiak
212-306-1472

FIX
Robert Malvino
212 306 1606

CMS Connectivity/Lines
Jim Wieman
212-383-7106

Amex Rules
Richard Farber
212-306-5310

Amex Membership
Sonia Stewart
212-306-1413