1. SEC approved IEX's options exchange to counter high-speed trading. 2. The exchange aims to improve liquidity for options traders. 3. Citadel Securities opposed the exchange, claiming it undermines market integrity. 4. IEX plans to introduce a 'speed bump' to slow incoming orders. 5. Estimated benefits may take time to appear in the options market.
The approval may increase option liquidity and stability, positively influencing SPY pricing. Similar past initiatives led to improvements in trading conditions, benefitting overall market sentiment.
The article discusses a fundamental change that could impact options trading dynamics and SPY. The improvements in market liquidity may attract more investors, contributing to SPY's growth.
While initial effects may be muted, long-term adoption could stabilize the options market. Past examples show that significant market structure changes often take time to influence overall trading outcomes.