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Amex Chairman And CEO Salvatore Sodano's Response To PHLX's Proposal To Reinstate Payment for Order Flow

Date 25/10/2002

We vehemently oppose the spread of payment for order flow. As we have repeatedly stated, payment for order flow is not in the best interests of investors and flies in the face of best execution requirements.

At a time when all of our efforts should be oriented toward restoring investor confidence in the public markets and encouraging capital investment, the very last thing we need is the further erosion of investors' confidence that they are receiving the best possible price.

As a business, we have no alternative but to measure the effects of the actions of our competitors and to act accordingly. But, I strongly urge immediate action by regulators to put a stop to this process once and for all."