The second expansion of the pilot of penny-increment pricing is expected to accentuate trends that have been unfolding since the U.S. options exchanges began the program at the beginning of last year. While retail investors have been pleased, institutions seeking to execute large orders have been less so, and the possibility remains that regulators could tap the breaks until the market better adapts to the changes.
The pilot started with 13 options classes quoted in pennies, rather than nickels and dimes, and gained 22 more on Sept. 28. With another 28 added on March 28, the program's 63 classes now comprise more than 50 percent of options volume.
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