Chicago Stock Exchange Board Approves Extended Trading Hours Session - Target Start Date of October 1, 1999

The Chicago Stock Exchange (CHX) announced today that its Board of Governors approved a plan to bring the benefits of a registered securities exchange to retail investors who want to trade during non-traditional hours. Pending the effectiveness of a Securities and Exchange Commission (SEC) filing, the CHX is targeting a start date of October 1. "Over the last three years, the Chicago Stock Exchange has more than doubled its volume, making it the second most active floor-based stock exchange, by successfully integrating electronic trading technology with the benefits of a regulated auction market environment. This model will translate well to the extended hours environment, and the competition we bring to the market will benefit investors," CHX president and CEO Bob Forney said. The CHX Board of Governors, at a meeting yesterday, approved a plan for the Exchange to trade all S&P 100 and Nasdaq 100 issues as well as 50-100 of the most active non-S&P 100 and non-Nasdaq 100 issues between 3 p.m.and 5:30 p.m. Central Time. One key difference between the regular trading hours session and the new extended hours session is that investors will only be able to enter limit orders in the extended hours session. A limit-orders-only rule will protect investors while this market matures and gains liquidity. Unlike the extended hours session from 3 p.m. to 3:30 p.m. Central Time the CHX already offers, which is primarily for institutional investors, the additional session will be structured more to serve the needs of retail investors. "The CHX fully supports the SEC's efforts to protect the integrity of the National Market System," said Forney. "For that very reason it is important to have registered securities exchanges present in this extended hours market that is now populated by a fragmented assortment of alternative trading systems. Extending trading hours only to 5:30 p.m. Central Time eliminates the operational issues that are now being addressed by the SEC and industry working groups studying extended hours trading." "Our goal is to gradually extend our hours, while continuing to offer the services of the CHX's tried and true model, in order to meet the changing needs of investors," explained Andrew A. Davis, CHX vice chairman and CEO of the Rock Island Company, one of the largest CHX specialist firms. The CHX extended hours session will be largely based on the same technological and regulatory infrastructure as the Exchange's regular trading session. Orders will be routed and executed via a version of its automated trading system that currently processes more than 90 percent of the CHX's trade volume electronically. CHX specialists will maintain continuous two-sided markets in the stocks they trade. "It's not quite as simple as just keeping the computers on for an extra two hours, but because the CHX is the most technologically advanced stock exchange, our existing infrastructure is easily adaptable to extended trading hours," Forney said. "Because we are highly automated, the Exchange can offer extended hours with minimal increases in staff and costs. As a result, the CHX will promote competition in extended trading hours by maintaining our current fee structure, which is among the lowest in the industry. We will also continue to provide a very broad selection of both listed and OTC stocks." The Chicago Stock Exchange was founded May 15, 1882 and is the second most active stock exchange in terms of share and trade volume. The CHX is also the fastest growing exchange providing the strongest force for competition to all U.S. markets. The CHX trades more than 4000 NYSE, AMEX, Nasdaq and CHX-exclusive issues, more than any other stock exchange in the world.