US market plunge sparks first test for penny pricing

Penny options held up in their first major test on 27 February, when the Dow Jones Industrial Average fell almost 200 points at one point due in large part to an index glitch. Industry executives said the experience will help reveal some key information on just how much capacity and functionality the options industry will need in coming months.

The US equity options penny options pilot, which lists 13 different options, was able to withstand the market shock without...