SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Final Frontier - Online Remote Trading
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
From: TFF6/8/2006 7:54:22 PM
   of 12617
 
SEC urges limited options market penny quoting
Wed Jun 7, 2006 1:18pm ET


WASHINGTON, June 7 (Reuters) - U.S. Securities and Exchange Commission Chairman Christopher Cox on Wednesday urged six major options exchanges to begin quoting a limited number of options in pennies on Jan. 29, 2007.

Options are now quoted in increments of nickels and dimes.

"Quoting in penny increments will benefit investors by allowing options quotes and orders to be expressed at better prices, and has the potential to enhance further the already strong competition and innovation that exists in the options markets," Cox said in a statement.

Several U.S. options exchanges and their members recently have expressed interest in penny quoting, the SEC said.

Penny quoting would bring options in line with how their underlying stocks have been traded since the abolishment of trading stocks with fractional denominations in 2001.

Stocks went to penny quotes with the introduction of decimalization. But options quoting stayed at 5- and 10-cent increments, partly out of concern about the sharp increase in data that would follow penny trading.

Options trading produces a vast amount of quotes and computer systems have had to improve to keep up.

The SEC said quoting options in pennies "will increase quote message traffic, which the systems of exchanges, market data vendors and securities firms must be able to manage."

For this reason, penny quoting would begin in a small number of options, possibly expanding later, the SEC said.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News