In an effort to satisfy US regulators on disclosure, the Options Clearing Corp. (OCC) says it will develop electronic linkages between the five US equity options exchanges to ensure that customers get the best prices on orders.
The Chicago-based OCC, which clears US exchange-traded equity options contracts and is owned by the five exchanges, already has bilateral network and backup systems in place for the transfer of equity options clearing and settlement data. Under the new project, OCC says it will enhance its existing network by adding links between the exchanges so they can access each other's options order information for the first time.
The five exchanges are the American Stock Exchange, Chicago Board Options Exchange, International Securities Exchange, Pacific Exchange and Philadelphia Stock Exchange.
The new options system is likely to resemble the Intermarket Trading System (ITS), the computer system that links stock exchange specialists and market makers in the same securities.
Spokeswoman Pam Tvrdy says OCC has yet to set an expected completion date for the network and declined to discuss the project's cost.