Quoting in pennies seen around the corner
Chicago Board Options Exchange (CBOE) last week announced
plans to introduce trading in nickels for a wider range of
options, a move seen in the market as a step toward quoting in
CBOE plans to allow quoting in five cent increments for all
options series priced under $15 that trade on the CBOE's Hybrid
Under the plan, which was submitted for approval to
Securities and Exchange Commission (SEC), approximately 500
classes would be traded in nickel increments. Currently, only
options trading below $3 are traded in five cent increments,
while those above that level trade in ten cent increments.
Non-hybrid options, such as index options, are exempt from the
proposed rule change and trading increments for those classes
will remain unchanged.
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