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NYSE Arca Comes Up a Winner in Penny Trading

Maker-Taker Model Model Makes Options Debut

Traders Magazine, May 2007

Peter Chapman

If the penny pilot now under way in the options market is viewed as a referendum on NYSE Arca's unique market structure, it would be hailed as a victory for the exchange. NYSE Arca has seen its market share in the 13 options classes subject to trading in penny increments jump from 8 percent in January, before most of the pilot launched, to 12 percent in mid-April. In the same period, the respective market shares of the five other exchanges have declined or remained unchanged. "We thought the penny pilot was a good opportunity to try a new market model that rewards

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