[Vms.sig-hu] OpenVMS Pearl - Press Release - ISE Strengthens Leadership(fwd)

[Fodor Zsuzsa]

Dear Folks,

This is ok for external distribution. ISE was the first to exchange in
25 years in NY when they started 3 years ago and they are now the
"world's largest equity options exchange"

To view the ISE OpenVMS Testimonial please visit
http://h71000.www7.hp.com/openvms/brochures/index.html

As you can see from the testimonial they are a great partner.

Warm Regards,
Sue

From: Hummel, Lynne 
Sent: Wednesday, January 07, 2004 3:13 PM
To: 
Subject: FW: Press Release - ISE Strengthens Leadership Position in
2003, Plans to Increase Product Lines in 2004


Some facts about our customer, ISE.  Their testimonial about VMS 
appears
on our website currently.

-----Original Message-----
From: ISE Information Alert [mailto:ISEInfoAlert at iseoptions.com] 
Sent: Wednesday, January 07, 2004 1:41 PM
To: members at iseoptions.com
Subject: Press Release - ISE Strengthens Leadership Position in 2003,
Plans to Increase Product Lines in 2004


ISE Strengthens Leadership Position in 2003, Plans to Increase Product
Lines in 2004 
NEW YORK, January 7, 2004 - The International Securities Exchange 
(ISE),
which completed its third full year of operations in 2003, ended the
trading year as the world's largest equity options exchange. 
ISE secured its 2003 advancements by continuing to enhance its trading
systems to provide members and customers with more flexibility in
executing their orders. Many of the trading system enhancements were
created and introduced in response to requests from ISE's customers 
and
members. 
 "The US options industry benefited from strong growth in 2003 as
options contracts grew in popularity among individual and institutional
investors," said David Krell, ISE's President and Chief Executive
Officer. "ISE's market share increased as a result of its ongoing
efforts to introduce new trading technologies and to attract new firms
to enter the market." 
ISE's average daily trading volume increased 61% to 971,742 contracts,
compared to 604,251 contracts in the year-ago period. In total, ISE
traded 244,879,035 million options contracts in 2003, up 61% from
152,271,279 million contracts in the previous year.
ISE's market share in its listings was 32%, up 33% compared to the 
same
year-ago figure. ISE's total market share, which includes index options,
was 30%, up 10% compared to the same year-ago figure. 
In another important measure of ISE's position within its industry, ISE
executed more customer volume in ISE-listed options in 2003 than any
other US exchange. The spreads available in ISE's listed options classes
are tighter than, or equal to, away markets more than 93% of the time.
Moreover, ISE's PMMs and CMMs are willing to provide an average of 
more
than four times the liquidity than counterparts at competing exchanges.
"In 2003, ISE concentrated on strengthening its core technology and
building the infrastructure to expand its product line into index
options. We enter 2004 committed to provide investors and members 
with
additional products and trading functionality.  As always, ISE will
continue to approach these improvements by consulting its customer 
base
and aligning new functionality and products with customer demand," 
said
Gary Katz, ISE's Chief Operating Officer.
In 2003: 
* ISE implemented a "one size fits all" trading rule in January that
ensures market makers and firms receive the same order execution
privileges long enjoyed by customers. In a "one size market," the
displayed size of ISE's Primary Market Makers (PMMs) and Competitive
Market Makers (CMMs) applies to incoming orders from customers,
broker/dealers, firms, away market makers, and immediate or cancel
orders entered by other market makers. The Securities and Exchange
Commission's approval of this trading rule marked the first time in the
30-year history of the US options market that professional traders have
been able to enjoy the same order-execution benefits as public
customers. 
* ISE introduced ISEspreads, allowing members to automatically 
execute
multiple part trades, such as spreads, straddles, strangles and
butterflies, against the combination order book and against bids and
offers posted in ISE's regular order book and also against incoming bids
and offers. Volume in multiple part trades on ISE has increased 56%
since its introduction on February 7, 2003. 
* ISE launched the ISE Sentiment Index (ISEE) which measures opening
customer transactions in call and put options, providing investors with
information on the customer buying and selling activity within the
world's largest equity options exchange.  
* ISE filed a petition with the Securities and Exchange Commission 
(SEC)
asking the regulatory agency to use its rule-making authority to amend
its rules to prohibit an exchange from being a party to exclusive or
preferential licensing arrangements with respect to index options
products and options overlaying other instruments. ISE believes that
prohibiting such license arrangements will enhance competition in the
market and will result in significant benefits for the investing public.
Many of the securities industry's largest brokerage firms sent letters
to the SEC in support of ISE's position that all index options should be
listed on more than one exchange.
* ISE implemented the technological and regulatory foundation to trade
index options, which allowed ISE to expand its product base.  The
Standard & Poor's SmallCap 600 Index, which was ISE's first listed index
product, has experienced a 99% increase in average daily volume since 
it
began trading on October 3, 2003. 
* ISE introduced a low cost Virtual Private Network (VPN) connectivity
solution that allows broker/dealers to use ISE trader workstations to
route orders to ISE's market over the Internet. 
* ISE implemented a $1.00 strike price pilot program covering options
classes on stocks priced between $3.00 and $20.00 to offer investors
greater flexibility in managing their investments by more closely
aligning options strike prices with stock prices. 
* ISE increased the liquidity available in the US options market. 
The following firms joined ISE as PMMs in 2003: 
o Citadel Derivatives Group, a subsidiary of Citadel Investors Group 
o Merrill Lynch Professional Clearing Corporation 
The following firms joined ISE as CMMs in 2003: 
o Citadel Derivatives Group, a subsidiary of Citadel Investors Group 
o Merrill Lynch Professional Clearing Corporation 
o Optiver US, LLC 
o UBS Securities LLC 
* ISE's number of Electronic Access Members (EAM) increased to 123,
compared to 94 in 2002 
* ISE traded its 250 millionth contract in February, its 300 millionth
contract in May, and its 400 millionth contract in October.
* ISE listed 590 equity options classes at the end of 2003, up from 519
in the previous year. 
* ISE's Board of Directors voted to add 30 Competitive Market Makers
(CMMs) memberships, bringing the total number of CMMs from 130 to 
160.
The issuance is currently pending SEC approval. 
* ISE elected Dr. Thomas R. Cardello, Managing Director of Morgan
Stanley and Sarah Miller, Director of the Center for Securities, Trust
and Investments at the American Banking Association to its Board of
Directors.  The ISE Board consists of 15 members, seven industry
directors and eight non-industry directors. 
* ISE completed its third annual customer service survey to insure that
ISE's operations are optimally calibrated with the needs and desires of
its members and customers. 
* ISE was named Derivatives Exchange of the Year by Risk Magazine for
the second time in three years. 
Mr. Krell said that ISE remains committed to its founding principles of
market integrity, transparency, and efficiency.  He said ISE plans to
move forward with a number of new products and system 
enhancements next
year.  "We believe that ISE is poised to benefit from the global trends
that continue to impact the options market," Mr. Krell said.  

ISE Background 
The International Securities Exchange, the world's largest equity
options exchange, was founded on the principle that technology fosters
and infuses new efficiencies and operational innovations into securities
trading. After developing an innovative market structure that integrated
auction market principles into an advanced screen-based trading 
system,
ISE launched the first fully electronic US options exchange in May 2000.
ISE continually enhances its trading systems to provide investors and
the trading community with the most efficient, least expensive order
executions possible. 

For more information about ISE, its products and its technology, visit
www.iseoptions.com. 


CONTACT: 
Alicia Curran 
Corporate Affairs Manager 
Research & Corporate Affairs 
International Securities Exchange 
(212) 897-8181 
acurran at iseoptions.com 




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