The new enhancement to PHLX XL will increase the Exchange's capacity to improve electronic access for customers, broker dealers and market makers while maintaining the advantages of a floor-based environment. Adding the ability of market makers to stream quotes electronically follows the earlier debut in 2003 of the Book Match and the Book Sweep features.

"The PHLX continues to be at the forefront of offering the options marketplace the benefits of floor-based and electronic trading innovations," said PHLX Chairman and CEO Meyer 'Sandy' Frucher. "We intend to file soon for further enhancements to our electronic model that will include remote competing specialist capabilities."

Added Frucher: "We chose to implement PHLX XL in phases to ensure that our model would be compelling – on technology, access and cost – to all segments of the trading community."

"This expansion will boost PHLX's position as the most cost-effective marketplace to do business," said PHLX Executive Vice President and Chief Information Officer William H. Morgan. "The system is designed to produce competitive pricing and deep liquid markets while focusing on speed of execution. It allows for significant capacity and expansion capabilities as well as for ease of access that will enable member firms, liquidity providers and quoting vendors to quickly and easily connect to the front-end."

The PHLX's proprietary technology system has an outstanding track record of maintaining near-perfect operational uptime and has demonstrated its ability to handle extreme market volumes.