The Ballista ATS facilitates a wide array of order types and allows for trading negotiation. Ballista's specialty order types limit information leakage, while at the same time tapping into deep liquidity through a pool of vetted manual and electronic liquidity providers.
Ballista ATS is based on the patent-pending Reactive Auction Process (RAPTM). During a RAP, a trader submits a block-sized, directional option strategy or delta-neutral/volatility order, using one of Ballista's order types, defining the parameters of the liquidity the trader wishes to source.
The order is then broadcast to Ballista ATS participants that have indicated their interest in trading that specific option, its sector or index components. If an order goes unfilled, in part or whole, it is then moved into a private electronic negotiation room with the closest counterparty. At this point, terms of price and size may be negotiated in hopes of finding a mutually beneficial trade.
Once matched on the Ballista ATS, initiated orders are then crossed and/or executed on an applicable securities exchange.
Volatility (Delta-Neutral) Transaction - Traders may enter block orders of up to (3) listed option components, and (1) additional stock component, with the stock component an equal delta hedge to the options being traded. All legs are traded contingently as a set, with the trader having no leg or partial package risk. Minimum order size is 500 contracts.
Directional (Non-tied) Transaction - Orders may also be entered for up to (3) option legs (NO stock component). Orders for individual option legs or option spread strategies may only be entered within the current NBBO, and are automatically cancelled if they lock or cross the public options NBBO. Minimum order size is 500 contracts.
By leveraging both displayed and non-displayed order types on Ballista ATS, traders may choose the visibility level best suited to their risk profile.
Exclusive Order - This order type affords a trader seeking liquidity the ability to retain priority for the duration of the timed auction. By enforcing a trader's priority to the debit or credit side of an auction, an exclusive order is ensured to trade if sufficient liquidity is available. A trader must display SIDE and SIZE of an Exclusive order, but may optionally show/hide PRICE.
Phantom Order - This order type offers a trader the ability to leverage a non-displayed order, but allows any other Ballista participant to post both bids and offers in response to an initiated phantom order. As such, a phantom order may not trade due to other participants improving the current quote and establishing priority. Phantom orders display SIZE only - PRICE and SIDE are non-displayed.