The SEC approved a tripling in the size of trading position limits at the Chicago Board Options Exchange, said William J. Brodsky, the CBOE's chairman and chief executive, speaking today to reporters in Chicago.
The increase could lead to eventual removal of all position limits, which would benefit institutional investors, Mr. Brodsky said.
Separately, the CBOE is developing a screen-based trading network for use next year. Already, the CBOE's use of electronic trade entry systems climbed above 80% in the fourth quarter of 1998, up from 66% in the same period in 1997, said Mr. Brodsky.
Also, the CBOE's planned merger with the Pacific Exchange is bogged down by a lengthy request for information from the Justice Department, said Mr. Brodsky.