Securities and Exchange Commission (SEC) has been considering introducing penny pricing to options and has also begun examining new best execution rules for the industry.
Elizabeth King, SEC associate director of market regulation, said in a speech at the options industry conference in Bonita Springs, Florida, "a move to penny pricing in options could lead to reducing or eliminating payment for order flow."
While no timeline was given regarding penny pricing, the idea sparked a debate over the impact on exchanges and whether the industry order routing system, called Opra, could handle the messaging traffic that would...