Options exchange ISE to enter equities market
Wed Apr 19, 2006 8:11 AM ET
Printer Friendly | Email Article | Reprints | RSS
NEW YORK (Reuters) - International Securities Exchange Inc. (ISE.N: Quote, Profile, Research) said on Wednesday it was entering the equities market, pitting the largest U.S. equity options exchange against the industry stalwarts New York Stock Exchange and Nasdaq.
The ISE Stock Exchange is controlled by ISE, with minority stakes held by a number of broker-dealers and members such as Bear Stearns Cos. Inc. (BSC.N: Quote, Profile, Research), Citadel Derivatives Group, Deutsche Bank AG (DBKGn.DE: Quote, Profile, Research), Interactive Brokers Group LLC, J.P. Morgan Chase & Co. (JPM.N: Quote, Profile, Research), Knight Capital Group Inc. (NITE.O: Quote, Profile, Research) and Sun Trading LLC.
The exchange said ISE Stock Exchange will introduce its first product, MidPoint Match, early in the third quarter. This fully-automated platform for trading stocks will execute orders at the midpoint price of the national best bid and offer during the trading day.
The market will be open to ISE members as well as broker-dealers who become members of the exchange and can be accessed through ISE's existing trading platforms, the company said.
ISE said that the benefits of the exchange include anonymity and the elimination of spread and market impact.
The ISE already competes with the NYSE in the options market through the NYSE's Pacific Exchange. Nasdaq, meanwhile, on Tuesday introduced an options routing system to its customers that will allow them to connect to the existing six options markets, including ISE.
ISE enters the equities trading business at a time when both Nasdaq and the NYSE are interested in making acquisitions, particularly overseas. The NYSE became a publicly traded company earlier this year after it purchased U.S. electronic trader Archipelago Holdings.
ISE shares last traded on Tuesday at $41.73 on the New York Stock Exchange. |
