The Securities and Exchange Commission (SEC) has proposed two investor protection measures in options markets that currently exist in stock markets. The proposal would prohibit an options exchange from unfairly impeding access to displayed quotations, and would limit the fees that an options exchange can charge investors and others wishing to access a quote on an exchange.
The proposal is designed to address these issues by extending 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 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.
Mary Schapiro, chairman at SEC, said: “This rule is designed to increase transparency in the markets and promote greater fairness and efficiency.
“It is important that investors have the ability to access the best prices available regardless of the exchange that is posting the quotation. And, those investors should have a better understanding of the true cost of executing a transaction.”