The charter of the linkage, according to The Options Clearing Corporation (OCC), is to further increase market efficiency, enhance competition, facilitate the offsetting of investor orders, and contribute to best execution of those orders. Linkage is governed by the Options Linkage Authority (OLA) under the conditions set forth by "the Plan" approved by the U.S. Securities and Exchange Commission (SEC).
OLA consists of:
- American Stock Exchange (AMEX)
- Boston Options Exchange, Inc. (BOX)
- Chicago Board Options Exchange (CBOE)
- International Securities Exchange (ISE)
- NYSE Arca, formerly Pacific Exchange, Inc.
- Philadelphia Stock Exchange (PHLX)
The new routing setup, set to begin in summer of 2009, incorporates Regulation NMS-type rules and aims to improve execution quality for large lot orders. It is also expected to reduce costs for market makers and introduce various efficiencies to options trading.
- Options Linkage Plan. The Options Clearing Corporation.
- Options Exchanges Target Summer for New Linkage Plan. Traders Magazine.