The International Securities Exchange, LLC (ISE) has filed with the Securities and Exchange Commission a proposed rule change which would allow non-displayed penny quotes and orders in options that trade in minimum pricing increments greater than one cent.

The SEC has approved similar rule changes with respect to the Nasdaq Options Exchange (Nasdaq) and the Chicago Board Options Exchange (CBOE), which similarly permit the entry of orders and quotes in penny increments in options series that have a minimum trading increment greater than one cent. Thus, the actual firm price of the order or quote is not displayed to market participants or the public and the penny price is temporarily hidden.

The ISE’s proposal would eliminate any competitive advantage that Nasdaq or CBOE members would have over members of ISE.