The Memorandum of Understanding, approved by both Boards of Directors, will provide that customers and members of each exchange will be able to continue to trade securities listed on that exchange 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 Securities and Exchange Commission.
"The importance of back-up trading capabilities is paramount in today's volatile world," said Meyer "Sandy" Frucher, chairman and CEO of the Philadelphia Stock Exchange. "Therefore, the PHLX is pleased to work with the CBOE and other exchanges in providing a framework for continuous trading."
"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 Philadelphia Stock Exchange (PHLX) was founded in 1790. The PHLX trades more than 2,000 stocks, 1,000 listed equity options, 13 sectors index options and currency pairs. For more information about the PHLX and its products, visit www.phlx.com.
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.
