Most customer orders, which are market orders or executable limit orders, will be routed electronically to the trading post for automatic execution. The electronic system bypasses the firm’s commission house broker, the order is executed automatically, and an execution report is sent back to the brokerage firm. The more complex orders will be handled by the firm’s commission house broker. A member firm may not execute an order for a listed option off the floor of the exchange unless it has tried to execute the order on the floor and a better price is available in another trading venue.
Series 4 textbooks
Types Of Orders