The switch to lower minimum price increments that came into effect in the US listed equity options market in February is making the market more efficient, according to a report. Earlier this year, the US options industry switched its minimum price increment from $0.05 (nickels) to $0.01 (pennies) in 13 key option classes under a pilot programme mandated by the SEC. The switch to penny pricing is already having a positive impact for users of equity options, according to Aite Group, a US consultancy firm.
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