Tuesday, June 6, 2017
Options Regulatory Alert #2017 - 24
ISE and MRX Options Modifies Quote Spread Parameters
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Effective Thursday, June 8, 2017, ISE and MRX will triple the original electronic quote spread parameters for all option classes during the opening process, pursuant to ISE and MRX Rule 803(b)(4). This represents a 50% increase from the current limits. The new preset opening quote spread widths are as follows:
The Exchange may also grant opening quote relief from the opening quote spread requirements for both individual option classes as well as floor-wide relief for all option classes based upon specific criteria. The Exchange may grant 2x wide the “new” opening quote spread parameter relief when one of more of the following conditions exist for an underlying security.
The Exchange will review each request separately and consider all of the factors associated with the aforementioned criterion. Requests to exceed 2x wide opening quote spread parameter relief will be determined on a case by case basis. The Exchange will grant floor-wide double-wide opening quote spread relief by 9:20 a.m. (ET) when the Standard and Poor’s Futures (S&P) indicate an opening of up or down greater than 2.25%. |
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