-NYSE Arca is the First Exchange to File for the Pilot-
NYSE Arca Options to Begin Penny Quoting Pilot in 2007
NEW YORK, Oct. 12, 2006 – NYSE Group, Inc. (NYSE: NYX) today announced that it has filed a proposal with the Securities and Exchange Commission (SEC) to begin a six-month pilot program quoting options issues listed for trading on the NYSE Arca Options platform in $0.01 increments as opposed to the current industry standard $0.05 for option series quoted under $3.00. Additionally, current pricing increments for options quoted at $3.00 per contract or greater is $0.10, which under the proposed plan would be reduced to $0.05 for issues in the pilot program.
“NYSE Arca applauds the SEC’s introduction of options penny quoting in a measured process as a means of studying its effects on options trading and determining the benefits to the investing public,” said Jon Werts, NYSE Group Vice President. “Consistent with our commitment to providing the public with the best, most robust menu of products and services, we have filed a comprehensive plan to analyze penny quoting and mitigate quote traffic.”
Importantly, the proposed quote mitigation plan willsignificantly reduce overall quote traffic in all of NYSE Arca’s options issues, not just those selected for the pilot program. As described in more detail in the filing, the Exchange proposes to disseminate quotes only in “active” options series.
The proposed penny pilot will begin Jan. 26, 2007 with the following 13 issues:
QQQQ Nasdaq-100 Index Tracking Stock
IWM iShares Russell 2000 Index Fund
SMH Semiconductor Holdrs Trust
GE General Electric Company
AMD Advanced Micro Devices, Inc.
MSFT Microsoft Corporation
INTC Intel Corporation
CAT Caterpillar Inc.
WFMI Whole Foods Market, Inc.
TXN Texas Instruments Incorporated
GLG Glamis Gold Ltd.
FLEX Flextronics International Ltd.
SUNW Sun Microsystems, Inc.
For more information please visit http://www.nyse.com/options .
About NYSE Group, Inc.
NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Pacific Exchange and the Archipelago Exchange, or ArcaEx). NYSE Group is a leading provider of securities listing, trading and market data products and services. The NYSE is the world’s largest and most liquid cash equities exchange. The NYSE provides a reliable, orderly, liquid and efficient marketplace where investors buy and sell listed companies’ common stock and other securities. On Sept. 30, 2006 , our listed operating companies represent a total global market capitalization of over $ 22.6 trillion. In the third quarter 2006, on an average trading day, almost 1.6 billion shares, valued at over $57.3 billion, were traded on the NYSE.
NYSE Arca operates the first open, all-electronic stock exchange in the United States and has a leading position in trading exchange-traded funds and exchange-listed securities. NYSE Arca is also an exchange for trading equity options. NYSE Arca’s trading platform provides customers with fast electronic execution and open, direct and anonymous market access.
NYSE Regulation, an independent not-for-profit subsidiary, regulates member organizations through the enforcement of marketplace rules and federal securities laws. NYSE Regulation also ensures that companies listed on the NYSE and NYSE Arca meet their financial and corporate governance listing standards.
For more information on NYSE Group, go to: www.nyse.com. Information contained on our website does not constitute a part of the prospectus relating to the proposed offering.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this article may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on NYSE Group’s current expectations and involve risks and uncertainties that could cause NYSE Group’s actual results to differ materially from those set forth in the statements. There can be no assurance that such expectations will prove to be correct. Actual results may differ materially from those expressed or implied in the forward-looking statements. Factors that could cause NYSE Group’s results to differ materially from current expectations include, but are not limited to: NYSE Group’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk and U.S. and global competition, and other factors detailed in NYSE Group’s Annual Report on Form 10-K and other periodic reports filed with the U.S. Securities and Exchange Commission. In addition, these statements are based on a number of assumptions that are subject to change. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by NYSE Group that the projections will prove to be correct. We undertake no obligation to release any revisions to any forward-looking statements.