On Monday, the International Securities Exchange said they planned to wait before jumping in to trade large-size options on the SPDR S&P 500 ETF Trust (“SPY”).
Now NYSE Arca Options, a division of NYSE Euronext (NYSE:NYX), is also saying not so fast on the product.?
According to Traders Magazine, they also expressed their concerns to customers about its impact on the market via a memo on Monday.?Steve Crutchfield, Executive Vice President NYSE Euronext and Head of U.S. Options, wrote of the exchange’s position,??Our concerns about creating a two-tiered market for products offering identical economic exposure persist. Jumbos offer no new benefits. It has always been possible to execute large trades using standard SPY options.?
In addition, Crutchfield noted that ?so far, Jumbo SPY options have met with extremely limited uptake.?
OCC data shows six contracts have traded.?
Arca plans to keep on eye on the its volume and in the future, may trade the product.
The exchange’s concerns aren’t anything new. Earlier this spring, it petitioned the Securities and Exchange to not approve the BOX Options Exchange proposal, reported Traders Magazine. It saw liquidity potentially being taken away from the 100-share product and thought it would not be good for the market.?
Meanwhile, BOX forged ahead and?started trading the new product last Friday.?