Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

Thursday, April 15, 2010

SEC Proposes Rule for Increased Fairness and Efficiency in Options Market

The SEC posted on its website proposed amendments to Rule 610 under the Securities Exchange Act of 1934 relating to access to quotations in listed options as well as fees for such access. The proposed rule would prohibit an exchange from imposing unfairly discriminatory terms that inhibit efficient access to quotations in a listed option on its exchange and establish a limit on access fees that an exchange would be permitted to charge for access to its best bid and offer for listed options on its exchange.

This amendment is designed to increase transparency in the markets and promote greater fairness and efficiency.  The SEC's proposal would extend the same measures to listed options that currently apply only to transactions involving exchange-listed stocks. By expanding the protections that are available in the options markets, the SEC's proposal would help provide investors with the ability to achieve best execution for their orders and remove barriers that an exchange might erect to keep non-members from accessing a quotation on the exchange.

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