What are the definitions of customer and non-customer trades/orders?
There are three categories of trades/orders recognized by the ISE which are Market Maker, Firm, and Customer trades/orders and here are examples of each. If a retail trader enters an option order through a broker like optionsXpress, the broker will designate the order as a Customer order. When a member like Morgan Stanley or Goldman enters a trade on behalf of a large customer, institution or hedge fund, the trade is also designated a CUSTOMER trade. Members like Morgan Stanley or Goldman can also enter trades for their own account and this type of trade is designated as FIRM trade, which can also be proprietary trades. MARKET MAKER trades can only be entered by designated market makers at the ISE.
