Pacific Exchange to Add Penny

Yes, BOX trades in pennies via its Price Improvement (PIP)

See www.bostonoptions.com

I've sent orders to BOX before but never received PIP.
The ISE is the way to go - 100% electronic and on many options it is the most or 2nd most liquid exchange. I never have a problem with fills on the ISE, no matter with odd lots, or spitting the bid/ask spead. Many times they will fill the order rather than joining me as the new NBB/NBO.

2nd choice is CBOE. Avoid the AMEX and PCX and PHLX like the plague. My experience is stuck orders and being the last exchange to be filled at a price level
 
Quote from TorontoTrader2:

Yes, BOX trades in pennies via its Price Improvement (PIP)

See www.bostonoptions.com

I've sent orders to BOX before but never received PIP.
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I have many times gotten the PIP.

The ISE is the way to go - 100% electronic and on many options it is the most or 2nd most liquid exchange. I never have a problem with fills on the ISE, no matter with odd lots, or spitting the bid/ask spead. Many times they will fill the order rather than joining me as the new NBB/NBO.
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Most of them will do this, but you are right, ISE and CBOT does this more quickly than the others.

2nd choice is CBOE. Avoid the AMEX and PCX and PHLX like the plague. My experience is stuck orders and being the last exchange to be filled at a price level
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nitro
 
Quote from metooxx:

A bigger disaster than going to nickles and dimes ...
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Yep, PCX is on life support so they decide to take they other exchanges with them.. There will be two or three MM's left when the dust settles
 
Quote from TorontoTrader2:

Yes, BOX trades in pennies via its Price Improvement (PIP)

See www.bostonoptions.com

I've sent orders to BOX before but never received PIP.
The ISE is the way to go - 100% electronic and on many options it is the most or 2nd most liquid exchange. I never have a problem with fills on the ISE, no matter with odd lots, or spitting the bid/ask spead. Many times they will fill the order rather than joining me as the new NBB/NBO.

2nd choice is CBOE. Avoid the AMEX and PCX and PHLX like the plague. My experience is stuck orders and being the last exchange to be filled at a price level
More...
I often got price improvements(two to three pennies), when QQQQ options were executed at BOX.
 
Quote from TorontoTrader2:

Yes, BOX trades in pennies via its Price Improvement (PIP)

See www.bostonoptions.com

I've sent orders to BOX before but never received PIP.
The ISE is the way to go - 100% electronic and on many options it is the most or 2nd most liquid exchange. I never have a problem with fills on the ISE, no matter with odd lots, or spitting the bid/ask spead. Many times they will fill the order rather than joining me as the new NBB/NBO.

2nd choice is CBOE. Avoid the AMEX and PCX and PHLX like the plague. My experience is stuck orders and being the last exchange to be filled at a price level
More...

==============

Toronto Trader2;
Good read on ISE.

Have gotten price improvement [1-3 cents] on BOX more so than i exspected;
avoid Amex like plauge,!!!!!

Havent had much trouble with liquid options on any of the others, but as swing/position trader holding days, weeks, that could be a small sample, on executions, limit/market orders.:cool:
 
just because they're deciding to go to pennies, it doesn't mean their markets will be penny-wide. i doubt even a drunk marketmaker would offer a market like 0.79-0.80.

they're probably just trying to beat NBBO for some of the 'dime or greater' spreads.

if something is 2.05-2.15, they'll make their markets 2.06-2.14, and they'll get the paper, which is what they're aiming for.

but for current nickle-wide markets, they can just follow NBBO.

they'll probably do alright for a little while until they force the rest of the exchanges to do the same and tighten their spreads even more.

nonetheless, bye bye marketmakers.

customers win.
 
It is likely too much data to transmit penny wide quotes from the exchange computers.

It is my guess that they will still have .05/.10 quotes unless a MM or retail order in book specifically says to show something in between. I think the quotes will look the same most of the time but the trading will happen between the marks in pennies.

:)
 
Doesn't the Euronext or the Eurex trade in pennies for equity options?

And the spreads will be just as wide with the exception of orders sitting in the book. There was a time when small orders mattered, but now a MM needs to trade size hence the death of the small trader.
 
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