NYSE Amex Options announced on August 23, 2012, that it has become the first exchange to file for and receive approval from the U.S. Securities and Exchange Commission (SEC) to eliminate position limits for options on the SPDR® S&P 500® Exchanged-Traded Fund (“SPY”) on a fourteen-month pilot basis. This is the first time a physically settled option has no position limits.
NYSE Amex Options is the only options exchange that does not charge customers a fee to trade SPY. However, with the approval of this initiative, NYSE Amex Options will now provide a low-cost alternative to expensive proprietary index products for institutional investors. It will also enable traders to optimize their S&P 500 hedging strategies using SPY options. In today’s competitive environment, such an alternative can play a vital role in helping certain investors to better meet their investment needs. To further encourage greater participation and increase market liquidity in SPY, NYSE Amex options also recently lowered its fee for Market Makers to a flat rate of $0.10 when executing electronic complex orders.
NYSE Arca Options is expected to submit a similar filing soon.
For more information see here.