.jpg)
The Boston Options Exchange (BOX) announced today a fee filing with the SEC to expand the “Make or Take” model to include the 25 most liquid non-penny pilot names, and to eliminate the minimum activity charge (MAC). The enhancements and changes are effective today.
“BOX is committed to finding meaningful ways to make it faster, cheaper and better to trade on BOX,” said Scott Morris, BOX’s Chief Executive Officer. “The expansion of the ‘Make or Take’ model will further benefit customers by reducing spreads within the most liquid names that currently do not benefit from penny trading. We are also happy to simplify our pricing structure by eliminating the MAC.”
The “Make or Take” model brings a significant advantage to customers as it promotes tighter spreads for the best possible price for customers. Market Makers that post liquidity receive 30 cents per executed contract with all other liquidity providers receiving 25 cents per contract. By providing a credit for posting liquidity, it encourages larger markets – promoting more size on the bid and offer.
For a listing of the 25 most liquid non-penny pilot names that will be included in “Make or Take”, see www.bostonoptions.com.
The Boston Options Exchange Group, LLC (BOX) was established in February 2002 by Boston Stock Exchange, Inc. (BSE), the Montréal Exchange and Interactive Brokers Group LLC. BOX’s equity partners are among the most important options firms in the US: Citigroup, Credit Suisse First Boston, Interactive Brokers, JP Morgan, Morgan Stanley, UBS and Citadel Derivatives Group LLC. BOX is an all-electronic equity derivatives market and was created as an alternative to the existing market models. BOX launched trading in February 2004. For more information, see the BOX website: www.bostonoptions.com
