Philadelphia Securities Attorney William Uchimoto Quoted on Issues with ISE's Cross Order Launch in Wall Street Letter

William W. Uchimoto, a shareholder and chair of the China Practice at Buchanan Ingersoll & Rooney's Philadelphia office, was quoted in an article that ran in the September 14, 2009, issue of the Wall Street Letter — a subscription service that provides in-depth intelligence on the latest trading and technology happenings and how they affect business.

According to the article, titled "CBOE Trips Up ISE's Cross Order Launch," "The International Securities Exchange's planned launch of its qualified contingent cross order — a much anticipated block crossing order type — has been held up in a rare move by the Chicago Board Options Exchange (CBOE). The launch was scheduled for Sept. 8, but the CBOE submitted a notice at the eleventh hour to the Securities and Exchange Commission that it would file a petition this week for a full Commission review."

As explained, the main concern is that the "order type would effectively circumvent rules surrounding exposure. … The CBOE complained that the order would allow users entering buy and sell options orders to cross without first exposing them to ISE participants for potential price improvement."

Uchimoto weighed in, saying the CBOE will have a tough time fighting the implementation. "He added it would be quite rare for the SEC to abrogate its own order, and it would require much negative commentary from other market participants," stated the article.