OES to develop outbound routing service to Philadelphia Stock Exchange
27 June 2006 | 1950 views | 0
Source: Philadelphia Stock Exchange
The Philadelphia Stock Exchange (PHLX) and Order Execution Services Holdings, Inc. (OES), announced today they have reached an agreement in principle to develop an outbound routing service as an essential part of the new PHLX electronic equities market structure that is expected to be launched in the third quarter of this year.
Under the terms of the agreement, OES will provide the facility broker-dealer with the outbound routing technology, technical and operational services, and order audit trail compliance tools to the PHLX to meet Regulation NMS requirements.
PHLX will assist OES in the establishment of the NASD registered broker-dealer to operate as a single-purpose facility of the PHLX designed to deliver orders to OES, or other qualified access brokers, for execution in other marketplaces.
"The Philadelphia Stock Exchange sees this as a significant opportunity to allow the Exchange to electronically access all the other markets in a Reg NMS environment," said Bob Miller, senior advisor to the PHLX.
David M. Scheckel, CEO of OES, said his company will provide the services for the operation of the PHLX facility, including its outbound router broker-dealer, routing technology, Reg NMS audit tools, as well as provide agency brokerage services to handle equities orders from the PHLX sent to other exchanges and market centers.
"As it becomes a fully-automated electronic equities exchange, the PHLX will be better able to compete against other exchanges, market centers and ECNs, while proactively complying with Reg NMS and other regulations," he said.