Commentary

Elaine Wah

Modern Markets, Modern Metrics - A Blog By IEX

In this blog by IEX's Elaine Wah, the newest public exchange looks to refute public claims that the metrics it uses are designed to inflate its own volume numbers and mislead people.

Traders Poll

Do you think it's a good idea to conduct an access fee pilot to assess the pricing models used by many trading venues?

Yes

67%

No

0%

Should have had a pilot program a long time ago.

33%

Free Site Registration

June 20, 2005

Just Too Many Quotes

By Mark Longo

The free lunch may be over in the options markets. With the number of quotes disseminated by the options industry growing every day, many exchanges, market makers and vendors are saying enough's enough. The bandwidth required to disseminate all of these quotes is driving up technology costs across the board. As a result, quote mitigation was a popular topic at the 23rd annual Options Industry Conference in Bonita Springs, Fla. Among the methods discussed to limit quote traffic were charging liquidity providers to disseminate quotes, implementing an RFQ (request-for-quote) system for deep in-the-money options and even charging customers for options quotes. However, with penny pricing for options looming on the horizon, even these drastic measures may not be enough to stem the flood of quotes that is swamping the options market.