NASDAQ’S PHLX OPTIONS EXCHANGE LAUNCHES COMPLEX ORDER SYSTEM

Posted September 10, 2008

NEW YORK – The Nasdaq OMX PHLX options exchange, a unit of the Nasdaq OMX Group Inc., has launched its Complex Order System, a fully electronic system for options trading that automates handling and executing of two-sided complex orders priced as a single order.

“This new feature will provide customers with more choice,” says Adam Nunes, Head of Nasdaq OMX US Options. “The launch of the Complex Order System further positions PHLX as a versatile options trading marketplace that combines superior attributes for electronic and floor-based options trading.”

Nasdaq OMX PHLX received SEC approval and completed its rollout supporting various order types including strategies consisting of two options on a single underlying stock, ETF, currency or index.

“With the PHLX Complex Order System, we are providing options customers with a full service experience at Nasdaq OMX PHLX,” says Tom Wittman, President of Nasdaq OMX PHLX. “The system is the most robust platform available for trading complex strategies in the markets today offering innovative technology, best price, speed, protection and customer service.”

The Complex Order System includes a price improvement auction plus National Best Bid and Offer Pricing Protection; Strategy Price Protection; and, Complex Order Opening Auction. The system is offered to every option traded on the exchange, over 2,250 classes and over 250,000 individual options.

Orders in the system may trade in penny increments, even in classes not participating in the Options Penny Pilot program. In 2009, Nasdaq OMX PHLX Complex Order System is expected to offer Complex Strategies with more than two option legs plus options with underlying stock capabilities. Currently, the two-sided order types being offered include spreads, straddles, ratios, combinations, collars and risk reversals.