Free Site Registration

ISE Calls for Move to Pennies

Traders Magazine, June 2008

Nina Mehta

The International Securities Exchange, in a turnaround, is now calling on the options industry to forget the penny pilot and move directly to penny quoting across the board. But the recommendation comes grudgingly, since the ISE did not previously favor penny quoting for all options. Gary Katz, the ISE's chief executive, says the new stance was driven by the Securities and Exchange Commission's approval of the Nasdaq Options Market, whose rules include the ability to maintain hidden quotes in penny increments in non-penny names. That means Nasdaq could have better prices than other exchanges in some options, although those prices would not be displayed publicly to investors and other exchanges.

Get access to this article and thousands more...

All TradersMagazine.com articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to exclusive industry white paper downloads, web seminars, online technology directory, the iPad App, and conference discounts. Qualified members may also choose to receive our free monthly magazine and any of our e-newsletters covering the latest breaking news, opinions from industry leaders, developing trends and trading strategies.

Already Registered?