NYSE, NYFE MOVE INDEX FUTURES/OPTIONS EXPIRATION
The New York Stock Exchange said it
and its New York Futures Exchange affiliate will move the
expiration of their respective index options and index futures
contracts to the opening of trading in the underlying stock on
each expiration Friday from the close of trading.
    The exchange said it has submitted the changes to the
Securities and Exchange Commission and the Commodity Futures
Trading Commission for approval.
    The exchange said, "The NYSE has long advocated settlement
in the morning rather than at the close of trading as a
practical way to deal with order imbalances and price
volatility which historically occur on so-called "triple
witching days."
    The triple witching hour falls four times a year when
individual stock options, stock index futures and options on
stock indexes all expire on the third Friday of the month,
which has led to volatile last-hour market swings.
    On the last triple witching Friday, December 19, the NYSE
traded almost 85 mln shares at the close of the market. The
next triple witching hour will take place Friday, March 20.
    The exchange said, "Morning settlement would expose order
imbalances to the full sunlight of public disclosure, ensure
the broadest dissemination of market information, and
facilitate the participation of all interested investors."
 Reuter
