The Exchanges recognize the importance of having arrangements in place that would allow their members and customers to continue to trade in the event of a disabling event or occurrence. The Memorandum of Understanding contemplates that customers and members of each exchange will be able to continue to trade through the facilities of the back-up exchange. Both exchanges will work collaboratively to develop the logistics of the back-up arrangement. Final implementation will be subject to approval by the Commission.
Earlier this year the Amex completed its own disaster recovery site that replicates its trading facilities, enabling the Amex to relocate and continue trading operations in the event of an emergency.
"It is in the best interests of investors and the markets as a whole for the exchanges to be working together to ensure that trading can function effectively in light of any disabling event," said Salvatore F. Sodano, American Stock Exchange chairman and chief executive officer. "The Amex is pleased to be in a position to assist our fellow exchanges as well as to be working with the CBOE and others in formalizing an understanding that fully supports each of us."
"CBOE is pleased to formalize the understanding that we believe has existed, but has taken on heightened importance in light of recent events," said CBOE Chairman and CEO William Brodsky. "We appreciate the spirit of cooperation that has been demonstrated during this process, allowing CBOE to forge contingency plans with all three floor based exchanges."
The American Stock Exchange (Amex) is the only primary exchange that offers trading across a full range of equities, options and exchange traded funds (ETFs), including structured products and HOLDRS. In addition to its role as a national equities market, the Amex is the pioneer of the ETF, responsible for bringing the first domestic product to market in 1993. Leading the industry in ETF listings, the Amex lists 123 ETFs. The Amex is also one of the largest options exchanges in the U.S., trading options on broad-based and sector indexes as well as domestic and foreign stocks.
CBOE, the world's largest options marketplace and the creator of listed options, is regulated by the Securities and Exchange Commission (SEC). For additional information about the CBOE and its products, access the CBOE website at www.cboe.com.
