The penny increments are already here. I placed a limit order this morning @ $.40, and got filled at $.42. I've noticed more than a few quotes at non $.05 increments for some time now.
thats actually because the order was split...1 contract filled at .40 and the second one somewhere else at .45 so your average is .42...thats happened to me as well
Well, that's not true. I've had orders filled in splits before, and for example, if it was an order for 5 contracts, it will say 1 filled at $X, 4 filled at $Z. This one was not. I placed an order for five contracts, and it says 5 were sold for $.42. When I placed the trade, the quote was $.41.
Arnie, if you are trading on BOX they have a PIP algorithm where the MM's can bid and offer for pennies to improve the market. This is not the same thing as what NYSE/Arca is doing. So if you are getting filled inbetween the market, it's because you are routing to BOX.
mav, do you really think we will start seeing 1.32/1.33 spreads as you said earlier? Or isnt something like 1.33/1.38 more likely for a while anyway.
I understand that, but i was wondering whether mav thought it was likely that the spreads tighten to the penny level when they start ticking in cents.