Content area
Abstract
This Monday, the Nasdaq Options Market and its PHLX market (the former Philadelphia Stock Exchange) will expand the pilot program of quoting options contracts in one-cent increments to a further 75 IWM and SPY option issues, joining the QQQQ options already quoted at penny increments at all price levels. The SEC first raised the issue in its recent concept release on US equity market structure, questioning whether the same sized increment for all stocks incentivizes trading in smaller stocks to move off-exchange. While US exchanges agree that sub-penny pricing is worth further investigation, they deny reports that they are working together to come up with a scheme.