Securities and Exchange Commission (SEC) has been
considering introducing penny pricing to options and has also
begun examining new best execution rules for the industry.
Elizabeth King, SEC associate director of market regulation,
said in a speech at the options industry conference in Bonita
Springs, Florida, "a move to penny pricing in options could
lead to reducing or eliminating payment for order flow."
While no timeline was given regarding penny pricing, the
idea sparked a debate over the impact on exchanges and whether
the industry order routing system, called Opra, could handle
the messaging traffic that would be associated it.
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