Archipelago outlines options trading platform plans

Source: Archipelago Holdings

Archipelago Holdings Inc., owner and operator of the Archipelago Exchange (ArcaEx), the nation's first totally open, all-electronic stock exchange, today unveiled the initial plans for the development of a next generation options trading platform at the Archipelago Options Advisory Meeting.

The new platform, which will replace the PCX Plus trading system, is designed to offer significant improvements in trading system performance, functionality and reliability. The announcement comes on the back of the Archipelago's completion of its acquisition of the Pacific Exchange.

"By creating a new technology platform for options trading, we will be better positioned to implement our vision of a multi-product single platform exchange," said Jerry Putnam, CEO of Archipelago. "Options are a dynamic product class where we see significant opportunity, and building this new system is evidence of our commitment to, and the opportunities we see in this market."

The new trading system, which is being developed internally, is being created using components and processes currently in use by ArcaEx's equity trading system and will integrate relevant functionality of the existing PCX Plus system.

"As we develop this new platform, it is critical for us to get feedback from our clients," said, Matt Gelber, Executive Managing Director of Derivative Products. "We are focused on having a differentiated and valuable product offering for options traders and the best way to accomplish this is by being responsive to the needs of the marketplace."

The company plans to file any required rule filings with the SEC in the coming weeks and pending all necessary approvals, expects to begin the transition to the new trading platform in the second quarter of 2006.

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