NYSE Euronext’s U.S. options Penny Pilot Expansion filing adopted by the SEC

NYSE Euronext’s U.S. options Penny Pilot Expansion filing adopted by the SEC



NYSE Euronext (NYX) today announced that its proposal for the expansion of the Securities and Exchange Commission’s (SEC ) Penny Pilot program, filed by NYSE Arca options, has been approved for market-wide implementation by the SEC .   The approval will extend the proposed pilot through December 31, 2010, including four quarterly additions to the pilot consisting of 75 issues each.   

"Representing over 85% of the overall volume in U.S. options, this expansion of the penny pilot offers many benefits to the investing public, including increased transparency, improved price discovery and reduced spreads," said Paul Finnegan, Senior Director, NYSE Euronext U.S. Options.   "By adding 300 new issues in a systematic fashion over a defined period of time, the endorsement of NYSE Euronext's proposal to allow for an appropriate expansion benefits the investing public while safeguarding the integrity of industry quoting activity.  We are very pleased with the SEC’s decision and we look forward to offering our customers the highest levels of market quality and execution choice as this program is carefully rolled out."

Highlights of NYSE Euronext’s plan include:

  • The addition of the next 300 most active issues into the program for a total of 363 issues
  • The phase in of 75 issues on a quarterly basis: 10/09, 1/10, 4/10, 7/10
  • Provides structure to replace delisted pilot issues on a semi-annual basis
  • Excludes high priced underlying issues(>$200)

NYSE Arca options offers immediate, cost-effective electronic order execution in nearly 2,000 options issues.  Combined with the re-launched NYSE Amex options exchange, NYSE Euronext’s distinct exchange models utilize hybrid systems that incorporate state-of-the-art open outcry trading facilities with an advanced electronic trading platform capable of processing 250,000 orders and 1,500,000 quotes per second with 2 millisecond acknowledgment (ACK) times.  NYSE Euronext’s U.S. options exchanges present a compelling dual market structure offering customers the choice of price-time priority on NYSE Arca options or the traditional market-maker model and expanded array of services of NYSE Amex options.

For more information on NYSE Euronext’s U.S. Options exchanges, please visit:  http://www.nyse.com/options