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On Friday, January 26, 2007, the options exchanges will commence a pilot to trade options in one-cent increments. The pilot will include 13 stocks and ETFs (listed below) covering a full range of trading characteristics. The pilot will be conducted with trading increments of one-cent for options trading at less than $3.00 and increments of five-cents for options trading at $3.00 or more, for each of the symbols in the pilot except for the QQQQ, which will trade in one-cent increments for all prices.
Block, Facilitation and Solicitation orders and their responses can be entered in half ticks when the trading increment is greater than one cent.
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Each exchange has filed rules that describe the trading increments for the pilot stocks, changes that result from one-cent increments, various reports to measure the impact of the pilot, and plans for quote mitigation. The ISE rule filing can be viewed at the following link:
http://www.iseoptions.com/legal/pdf/proposed_rule_changes/SR-ISE-2006-62$Pilot_Program_to_Quote_and_Trade_Certain_Options_in_Pennies$20061011.pdf
ISE has filed to allow block orders to trade at one-cent increments at all prices, regardless if the stock is part of the penny pilot. Once approved then half ticks will not be permitted. The rule filing can be found at:
http://www.iseoptions.com/legal/pdf/proposed_rule_changes/SR-ISE-2006-77$Penny_Increments_for_the_Block_Order_Mechanism$20061212.pdf
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The following is the list of options symbols to be included in the pilot:
- IWM - iShares Russell 2000� Index
- QQQQ - Nasdaq-100� Trust Shares
- SMH - SemiConductors Holders
- GE - General Electric Co.
- AMD - Advanced Micro Devices Inc.
- MSFT - Microsoft Corp.
- INTC - Intel Corp.
- CAT - Caterpillar Inc.
- WFMI - Whole Foods Market Inc.
- TXN - Texas Instruments Inc.
- A - Agilent Tech Inc.
- FLEX - Flextronics International Ltd.
- SUNW - Sun Micro Systems Inc.
Please click here to view the mapping of the penny pilot option symbol to underlying symbol to OPRA symbol
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- First week (beginning 1/26/07)
� WFMI
- Second week (beginning 2/2/07)
� GE
� MSFT
- Third Week (beginning 2/9/07)
Remaining symbols:
� IWM
� A
� QQQQ
� SMH
� AMD
� INTC
� CAT
� TXN
� FLEX
� SUNW
Contact: International Securities Exchange
Media:
Molly McGregor, 212-897-0275
[email protected]
or
Members:
Greg Maynard, 212-897-0277
[email protected]
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