AEX @CCESS 2000 New Electronic Gateway To Amsterdam Exchanges

Easy, full access will be at the heart of Amsterdam Exchanges' strategy in 2000 and beyond. That is why the products the AEX will offer to their clients next year will be presented under the label AEX @CCESS 2000. The AEX have taken a number of step's to achieve this, including selling up a joint initiative with KPNQwest. AEX will create an open system structure that will allow users to gain direct access to AEX's trading and clearing systems via various networks. Amsterdam Exchanges offers an integrated package and easy access to all necessary system components. Seatholders can purchase components separately on the basis of their individual needs. In the near future a number of improvements will be made to the Switch trade support system, part of AEX @CCESS 2000. In the first quarter of 2000 users will be able to place order that improve the market directly in the order bank, so that the market is aware of outstanding orders at an earlier stage. This will make it easier for users to follow the status of their orders and respond. The possibility of placing market-improving orders directly in their order book will result in a smaller spread between bid and ask prices. Market participants on the exchange floor will be able to trade with the order book using small handheld terminals, removing all need for human intervention in the subsequent administrative process. This will prevent errors, and investors will receive information on the execution of their orders in the order book sooner. The small order execution system (SoeX) will remain in force alongside the facility for placing market-improving orders directly in the order book. This system is fully computerised and offers many benefits for small orders, in particular faster times to completion. Handheld terminals will entail great improvements for larger orders. These terminals were implemented in November for AEGON options and will be introduced for other option classes in the course of December and at the start of 2000. Trading in open outcry can then prove its added value: market makers compete and offer better prices. With handheld terminals the subsequent administrative process is fast and efficient, so that parties receive feedback on order execution extremely quickly. A start will be made on further computerising the administration of large off-exchange transactions (professional trades) in the first quarter of 2O00. In mid 2000 Amsterdam Exchanges will introduce a screen-based system for trading options and futures in an electronic segment, and will start trading products on the screen as from that moment to gain experience in this field. The AEX future is expected to go on screen first. If the market so wishes, it should be possible to trade a large proportion of AEX options products on screen by the end of the year. Option classes that qualify are potentially those of which the shares will be traded on the European alliance platform in November 2000. As Amsterdam Exchanges will retain its open outcry system alongside the screen-based system next year, it will be possible for option classes to migrate to screen-based trading in phases. In the context of AEX @CCES 2000 Amsterdam Exchanges will make its option trading platform (Switch) highly accessible. It has developed an open version in which the Switch system can be contacted via a software interface (API). The necessary software can be presided in a customer friendly way, such as on CD-ROM or over the Internet for downloading. Part of AEX @CCESS 2000 involves Trading System Amsterdam (TSA), the securities trading system. In 2000 it will be possible to gain access to TSA via AEX-Access, as well as via the existing methods of CTCI and TSA terminals. AEX-Access will be the electronic gateway to TSA. Following the transition to the new millennium, version 1.0 of AEX-Access will be put into production at the end of January. AEX-Access will be made available to seatholders as soon as the millennium freeze on new software has ended. AEX-Access will be expanded in the second quarter with version 1.1, which will include an extra function for the quick and easy entry of a number of orders simultaneously (baskets). Amsterdam Exchanges will launch AEX-Trader alongside AEX-Access. AEX-Trader is a front-and software application for obtaining access to the stock markets trading system. At the end of 2O00, Amsterdam Exchanges will decide whether the existing TSA terminals should be withdrawn from use. All seatholders would then have to use AEX-Trader or similar software applications for their front-office activities. The trading functionality described in the market model for the European exchange alliance will be mode available in TSA with effect from November 2000. As from the start of 2000, seatholders will be able to exchange information with Amsterdam Exchanges' open systems (TSA, Switch, CTCI and Aurora) in various ways within AEX @CCESS 2000. To achieve this Amsterdam Exchanges has built, in co-operation with KPNQwest, an extensive international network for routing orders, prices, transactions and other exchange information with the utmost speed, safety and reliability. As from the start of 2000, Amsterdam Exchanges will use this network to bring points of presence (POPs) to major European cities. In the first half of the year a start will be made with a POP in London and one in Brussels. Seatholders will then he able to purchase individual services from Amsterdam Exchanges locally (at local or national line charges) and will also be able to link their often international networks directly to Amsterdam exchanges systems via the POP in one of these cities. In 2000, seatholders that do not require a fixed connection with Amsterdam Exchanges' open systems will be offered the possibility of logging on to these systems via ISDN, either directly to Amsterdam or indirectly via an existing POP in another European city. It will of course still be possible for seatholder to have direct connections with Amsterdam Exchanges. Currently these can be provided via the carriers KPN-Telecom, KPNQwest, Worldcom and Colt. In addition, during the course of 2000 it will be possible to access Amsterdam Exchanges' open systems via value-added network supplier (companies that operate their own financial information networks, such as Reuters, Bloomberg and GL). Finally, it is expected that Amsterdam Exchanges' open systems will he accessible via the Internet in the second half of 2000.