BOSTON STOCK EXCHANGE, BOURSE MONTRÉAL INC. AND INTERACTIVE BROKERS FORM PARTNERSHIP TO DEVELOP NEW ELECTRONIC OPTIONS EXCHANGE
February 19, 2002 (Boston, MA) — The Boston Stock Exchange, Inc. (BSE), the Bourse Montréal Inc., and Interactive Brokers Group LLC today announced the formation of Boston Options Exchange Group LLC (BOX) to jointly establish an electronic exchange for United States securities options.
BOX will operate as a fully automated equity options market that will conduct trading in options on individual U.S. equities, equity indicies, exchange-traded funds, and single stock futures. The Boston Stock Exchange will serve as the regulatory services provider, with oversight by the U.S. Securities and Exchange Commission. Bourse Montréal Inc., through its trading platform, will provide technical and operational services for BOX and will license and customize electronic exchange software for derivatives trading. Interactive Brokers will provide options market design and marketing assets and will participate as a financial investor in BOX.
During its first six months of operation, BOX intends to trade options contracts (calls and puts) on the 100 most actively traded U.S. equity issues with other classes to follow. Participation in BOX, which must be approved by the BSE, will generally be available to any dealer/broker in U.S. equities already subject to oversight by a self-regulating organization under the securities laws of the United States. All equity options traded on BOX will be cleared by the Options Clearing Corporation.
At present, BOX is developing its trading rules which will be submitted to the SEC for approval. Subject to such approval, the target for the commencement of trading on BOX is the last quarter of 2002.
Bourse Montréal Inc.
Renowned as the Canadian Derivatives Exchange®, Bourse Montréal Inc. was founded in 1874. It is Canada's oldest exchange and the first Canadian exchange to list options and to establish a major futures market. Today, the Bourse offers both individual and institutional investors a wide range of derivative products on equity, equity index and interest rates. It also offers clearing services through its subsidiary corporation, the Canadian Derivatives Clearing Corporation (CDCC). Additional information can be found at www.boursedemontreal.com.
Interactive Brokers Group LLC
The Interactive Brokers Group is a group of electronic brokerage and market making firms at the forefront of the electronic brokerage industry. Interactive Brokers Group, based in Greenwich, CT, has revolutionized the securities and derivatives markets by providing investors with high-speed, direct access to stock, options and futures products worldwide. Interactive Brokers Group specializes in providing investors with technology that offers efficient, fast access to the world's markets at the lowest possible cost.
Boston Stock Exchange, Inc.
Founded in 1834 as the third oldest exchange in the U.S., the Boston Stock Exchange (BSE) has, from its beginnings, played a vital role as a leading regional exchange within the strongest capital market system in the world. Today, the BSE offers exceptional market quality, specialized trading services, innovative technology and outstanding customer service to broker-dealers, investment institutions, and listed public companies. The BSE trades more than 6 billion shares of listed and over-the-counter securities on an annual basis. Additional information can be found at www.bostonstock.com. |
