The ongoing rollout of the penny options pilot programme by Securities and Exchange Commission (SEC) has raised more debate as investment group Citadel criticised its structure and urged a new approach.
In a 12 September comment letter to SEC, Citadel argued that the penny pilot programme is failing on individual options and should adopt a measurement of success based on relative trading volume for penny listed options.
The penny pilot programme, launched with 13 classes in January, has come under increasing scrutiny in recent months over several shortcomings including reduced trading volumes, a drop in the...