NYSE Group, Inc. announced that NYSE Arca Options will introduce new options pricing in conjunction with the penny pilot program that begins Jan. 26. Designed to reward participants that improve market quality and provide liquidity, the new NYSE Arca model offers increased efficiency and economic benefits to the growing options industry.


“The trading of options in penny increments fundamentally changes the options marketplace to the benefit of all investors. Our new pricing structure in penny pilot stocks is designed to further enhance those benefits by encouraging more competitive and tighter markets,” said NYSE Group President and Co-COO, Jerry Putnam. “Combined with NYSE Arca’s recently implemented market structure and trading platform, our new pricing model will more effectively meet the evolving needs of options participants.”

The following pricing will be implemented for Penny Pilot Stocks:



For the 13 securities already chosen to trade in .01 and .05 increments, NYSE Arca will not assess any payment for order flow charges. Additionally, there will be no cancellation or quoting fees, the platform will not have any delay in quote dissemination, and will offer depth of book information for up to 5 levels.

For one issue, the QQQQ, all series will trade in penny increments. Accordingly, NYSE Arca will eliminate the Lead Market Maker and trade the security in strict time price priority.

NYSE Arca Options offers immediate, cost-effective electronic order execution in nearly 2,000 options issues. The newly-developed system provides automatic executions for customer and broker dealer orders as well as a low cost venue for both Lead Market Makers and Market Makers to stream quotes from the trading floor or remotely. Blending speed and price-time priority with Lead Market Maker participation, NYSE Arca Options offers expanded and innovative order types, along with greater transparency, reliability and performance.