Options

C2 Will Combine Market Models

The Chicago Board Options Exchange is offering details about the operation of its new options exchange, C2.

Citi Opens Up Options Router

Citi will give its institutional customers direct access to its smart-order router for options trading.

Cover Story: Weathering the Storm

Last Year was a transformative one for Nasdaq OMX. Its flagship stock exchange lost market share. But Nasdaq rebounded as it diversified through acquisitions, allowing it to enter new lines of business, expand into new markets and to offer new products.

Philly Options Changes Its Stripes

Nasdaq OMX PHLX is experimenting with maker-taker pricing. As of Jan. 4, the options exchange began paying specialists to quote SPY options if their quotes result in trades. It also started charging exchange customers who hit or take those quotes.

2009 Review: Penny Pilot Expanded

As it was in the cash market, so it will be in options. The SEC in September approved a plan by NYSE Arca to expand trading in penny increments to nearly 400 options classes.

CBOE and ISE Fight Flash Ban

The CBOE and ISE are fighting a regulatory push to ban flash orders in the marketplace.

SEC OKs Penny Pilot Expansion

The SEC approved NYSE Arca's proposal to expand the so-called "penny pilot" whereby options trade in penny increments.

FINRA To Examine Options Desks

TMMS exams are coming to options desks.

Brokers Buy into NYSE Amex Options

NYSE Euronext's signed a deal last month to sell a 'significant' equity stake in NYSE Amex Options to seven big brokers.

CBOE Gets Pre-Hedging

The Chicago Board Options Exchange, as part of its drive to win order flow away from the over-the-counter market, got a big boost from the Securities and Exchange Commission.

Benchmark Cross for Options On Tap

A joint venture between the CBOE and a division of agency brokerage Pipeline Trading to offer a crossing mechanism that prices block trades at the gamma-weighted average price is back on track.

Dealing With Dealers Electronically

Crosses aren't the only way to get large blocks done on an options exchange. Market makers are still willing to negotiate over large trades.

Tethys Helps Options Traders Navigate Rebates, Fees

Execution management system, algo and analytics developer Tethys Technology developed an analytics-based feature on its Execta EMS platform that locates the highest transaction rebates, or lowest transaction fees, for orders to options exchanges with maker-taker pricing models.

Against the Tide

In March, the Chicago Board Options Exchange asked the Securities and Exchange Commission to permit CBOE members to hedge an options position before actually taking on the position. The practice, known as 'anticipatory hedging' or pre-hedging, has long been barred on the nation's options exchanges due to concerns about front-running.

BATS Aims to Mirror Equities Success

A year after becoming an equities exchange, BATS plans to grab a chunk of the options market.