In remarks published by the U.S. Securities and Exchange Commission, the Director of the Division of Trading and Markets, speaking in his official capacity and not necessarily for the Commission, said the April 16 options market structure roundtable pointed to three main areas for possible improvement: execution quality disclosure, containment of strike proliferation, and more efficient cross-market clearly erroneous trade policies. He also said the event was not intended as a precursor to immediate rulemaking, echoing Chairman Paul Atkins’s remarks, and that staff will review submissions to public comment file 4-887. The speech said the roundtable included a staff data presentation and three panels with 28 industry participants covering competition in a quote-driven market, the customer experience, and growth opportunities and challenges. It highlighted sharp market expansion between 2012 and 2025, including 144% growth in unique underliers, 719% growth in options series, a median OPRA message count of 131 billion in December 2025, 0DTE volume rising from nearly 20% of activity at the start of 2022 to 28% in 2025, and a decline in options market makers from 98 to 51. Other ideas noted were periodic competitive selection of specialists instead of lifetime appointments, review of auction processes, expansion of penny classes, and stronger risk management to support clearing capacity. The remarks also referenced recent related steps, including SEC approval of FINRA’s rescission of the Pattern Day Trading rule on April 14 and industry-led reform of the Options Regulatory Fee due to take effect on July 1.
U.S. Securities & Exchange Commission 2026-05-05
U.S. Securities and Exchange Commission Trading and Markets Director outlines options market structure priorities after April roundtable
The SEC’s Trading and Markets Director, following the April 16 roundtable, highlighted three potential options market structure improvements: better execution quality disclosure, limiting strike proliferation, and more efficient cross-market clearly erroneous trade policies, while stressing no immediate rulemaking is planned. He cited rapid options growth, rising 0DTE volumes, fewer market makers, and additional ideas including periodic specialist selection, auction review, expanded penny classes, stronger risk management for clearing capacity, and recent actions such as rescinding FINRA’s Pattern Day Trading rule and industry-led Options Regulatory Fee reform.