Penny options held up in their first major test on 27
February, when the Dow Jones Industrial Average fell almost 200
points at one point due in large part to an index glitch.
Industry executives said the experience will help reveal some
key information on just how much capacity and functionality the
options industry will need in coming months.
The US equity options penny options pilot, which lists 13
different options, was able to withstand the market shock
without major problems, brokers said. This came on a record
volume day for the US options, with more than 18m contracts
traded. Chicago Board Options Exchange (CBOE) executed almost
6.8m contracts, about 900,000 more than its prior record while
International Securities Exchange (ISE) handled 5.5m contracts,
almost a million more than the previous record.
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