Penny Increments on Options in the Future?

A

aeliodon

I want to know why options don't trade in penny increments? It seems that options that trade in penny increments would be a joy to trade. Tons of traders would start trading options so now why would the options exchanges mandate .05 spreads, it seems against their self interest.
Now I know IB has a penny increment program, but I think its in internal thing - ie if I post a bid at .37 then only other IB users can see that bid - its not posted on all the exchanges (am I right on this?).
 
You may wanna catch up on the industry news. The pilot program for penny increments starts mid-Jan and will run for 6 months.
 
Quote from leonnis:

you can use pennys at TOS(my broker) and IB that i know of.
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That's true, but that's for spreads not individual options. The pilot program is for individual options to be quoted in pennies.
 
Quote from MTE:

That's true, but that's for spreads not individual options. The pilot program is for individual options to be quoted in pennies.
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IB does individual options in pennies.
 
Quote from IBsoft:

IB does individual options in pennies.
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Right. Anyway, my point is that it is broker specific not industry-wide.
 
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