The NYSE will withhold quotes on certain listings until there is a price request. Its been said that such practices will not help customers and we areuse using the quote information to make trading decisions. So when the take quotes out of the market, they are affecting our decisions and giving us less choice.
The SEC will begin studying the pilot program in three months and will then decide how to proceed. Elizabeth King, SEC Associate Director, Division of Market Regulation, has said the study of pennies may take months. This can extend the pilot program while the examination is conducted. ?It may be that at the end of the six months, we need another two months to see what we will do,? King says.? Most Exchange officials say they are ready for
pennies. Scott Morris, CEO of the Boston Options Exchange (BOX), has said that the penny pricing environment will change the style of trading and the way market making and the way we now know it. ?If pennies are a success, we?ll see a lot more volume,? Morris says. ?I think we?ll end up with more market makers, or market players you?d consider market makers.?
As Option Strategists, we should pay attention to this as it should eventually make life better for us, as it will tighten the BID/ASK Spreads.
Frank Kneipher
FKPRINTS1@YAHOO.COM
