Commentary

Michael Ruvo
Traders Magazine Online News

Prevailing Market Price: Critical Issues Ahead of Deadline

In an exclusive to Traders Magazine, BondWave's CEO warns fixed income participants that they have less than two months until the May 14th deadline for the implementation of the mark-up disclosure rule and the implementation of the PMP "waterfall" approach for fixed income.

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March 1, 2003

A New Amex Fee for Rebate Business?

By Gregory Bresiger

Floor traders on the American Stock Exchange might soon be assessed a fee to finance payment for order flow.

This would come under a plan that members privately said the Amex is considering to lure more options orders. However, a spokeswoman for the exchange said action had not been taken.

"We have not done anything on any fee plan for order flow. Everything is status quo," she told Traders Magazine.

Traders privately said that the plan under review by the Amex would call for the exchange to collect 40 cents per option contract for each of the 100 most actively-traded option classes. The plan would also call for collecting $1 per contract for the popular options on the QQQ, or the Nasdaq 100 Tracking Stock.

The plan is controversial because regulators have been pressing exchanges to stop the practice of payment for order flow.