A number of options exchanges made filings in a step toward replacing the current, stand-alone intermarket options linkage plan. The new plan effectively applies the Regulation NMS price-protection provisions to the options markets. Under the plan, each participating exchange will be required to adopt new rules that are “reasonably designed to prevent trade-throughs.” These rules will replace the linage rules currently in effect on the various exchanges. The proposed rules provide for a number of exceptions to the prohibition on trade-throughs, including an intermarket sweep order.
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