SIFMA Submits Comments to all U.S. Options Exchanges in Response to Proposed Permanent Penny Program for the US Options Exchanges

SIFMA Listed Options Trading Committee submitted comments to the SEC and all U.S. Options Exchanges ("Exchanges") regarding the proposal to create a permanent Penny Trading Program ("Penny Program") to replace the current Penny Pilot Program. In the letter, SIFMA recommended that Arca and the other Exchanges submit a proposed rule change to the SEC that would create a permanent Penny Program. SIFMA stated that it is critical for each Exchange to adopt uniform rules with respect to the number of multiply-listed options classes that trade in pennies and the methodology to move classes in and out of the Penny Program.

Additionally, SIFMA recommended that, once the Penny Program is made permanent, it should apply to the most actively traded multiply-listed options classes, based on trading activity in the previous six full calendar months.

See: SIFMA Comment Letter.