Exchanges Prepare for Penny Options Pilot Expansion

US regulator the Securities and Exchange Commission has recommended a multi-phase expansion that would extend the pilot until March 2009. Exchange officials say the quote mitigation strategies implemented this year during the pilot's first phase should mostly offset the increase in options data traffic resulting from the expansion, though some systems upgrades and regulatory guidance may be needed.

The initial pilot in 13 options classes was scheduled to expire on July 26, but at the request