CBOE Reaches Half-Way Mark In Implementing New Hybrid Trading System, CBOEdirect HyTS

The Chicago Board Options Exchange (CBOE), the world's largest options exchange, today announced a milestone in the roll-out of its Hybrid Trading System, CBOEdirect HyTS. There are now 141 active options classes available for trading via CBOEdirect HyTS, representing approximately 50% of U.S. equity options trading volume. By November 30, 2003, CBOE expects to have more than 300 option classes available on the system, and more than 500 classes, representing 90% of U.S. equity options volume, available by year-end.

"The Hybrid Trading System so far has met our expectations in every way. Preliminary results show that disseminated bid-ask spreads have tightened, displayed sizes have increased, while customers continue to benefit from the advantage of open outcry price discovery," commented William J. Brodsky, Chairman and CEO, Chicago Board Options Exchange. "Our data shows that in CBOE classes trading via HyTS, the average displayed size available for trading has more than tripled."

CBOE developed the Hybrid Trading System, CBOEdirect HyTS, in an effort to further blend the speed and efficiency of electronic trading with the benefits of a floor-based, auction market. Many customers prefer the deep liquidity and opportunity for price improvement available in an open outcry environment. Answering the demand for the best of both worlds, CBOE launched CBOEdirect HyTS on June 12, 2003, creating a unique trading model unlike that of any other options exchange.

CBOE also offers customers a universal access trading workstation, the CBOE HyTS Terminal, to interface with this revolutionary trading environment. The HyTS Terminal, developed in conjunction with Belzberg Technologies, provides customers with point-and-click electronic access and order routing to CBOE, as well as other options, futures, and stock exchanges--all on a single screen.

"The CBOE HyTS Terminal represents a quantum leap in customer service and is a main portal to CBOE's next generation trading platform," said CBOE Executive Vice PresidentEdward Provost. "Demand for this state-of-the-art trading solution has been overwhelming as customers look to take advantage of a new level of access to the U.S. financial markets."

More information about CBOEdirect HyTS, including the roll-out schedule, can be found on a special section of CBOE's website at: www.cboe.com/AboutCBOE/Spotlight/asp.

CBOE, regulated by the Securities and Exchange Commission (SEC), is the creator of listed options, and the world's largest options marketplace. For additional information about the CBOE and its products, visit the CBOE website at www.cboe.com.