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Options Stats to Have Minor Impact

Traders Magazine, July 2008

Peter Chapman

Exchanges and brokers are split over the impact of an initiative by options exchanges to publish statistics about the quality of their trades. Sometime this quarter, the seven options exchanges will begin publishing monthly execution-quality statistics intended to help brokers make better decisions about routing their orders. The data series was devised by the Securities Industry and Financial Markets Association (SIFMA) in conjunction with the exchanges at the behest of the Securities and Exchange Commission. The regulator is driving the initiative in the hopes that brokers will base their routing decisions more on execution quality and less on the receipt of payment for order flow.

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