Boston Options Exchange has abolished its make or take
pricing scheme for options quoted in one cent increments, after
the scheme failed to increase the bourse’s market
Box’s maker-taker model for penny priced
options rewarded liquidity providers with rebates and charged
fees to those who removed liquidity.
William Easley, vice-chairman of Box, said the exchange
"often found itself as the last choice for intermarket linkage"
or via orders sent directly to the exchange, even when it
matched the national best bid or offer.
In July Box abolished the scheme for its SPDR S&P 500
Fund, PowerShares QQQ Fund and iShares Russell 2000 index.
Penny pricing was introduced at Box two years ago.
Box said the 57 contracts which were part of the make or
take scheme would be free to trade by public customers.
Professional accounts, which include both broker-dealers and
market makers, will pay 20 cents a contract.
The changes do not affect the fee structure of non-penny
classes, where all accounts that remove liquidity receive a
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