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PCX Penny Pricing Options Plan Draws Fire

Traders Magazine, September 2005

Gregory Bresiger

The Pacific Stock Exchange's proposal to trade options in pennies would be a disaster for exchanges and vendors, some of which may exit the options business, according to critics of the PCX proposal. "It would be a nightmare for all the firms. And for the exchanges, it will require an astronomical expansion of its bandwidth," Kenneth Leibler, chairman of the Boston Options Exchange (BOX), told Traders Magazine. He noted that the BOX executes but doesn't trade options in pennies.

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