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International Securities Exchange Enhances Facilitation Mechanism For Price Improvement

Date 14/12/2004

The International Securities Exchange (ISE) said today that it has received regulatory approval to enhance its facilitation trading mechanism by introducing a Price Improvement Mechanism (PIM) that allows price improvement of certain orders.

The PIM enables members to execute customer orders at a price that is at least one cent better than the National Best Bid or Offer. The PIM order is exposed in the marketplace for three seconds giving other participants the chance to improve the price of the order. After the three second exposure period ends, PIM responses and existing order book entries are matched against the PIM order at the best available price.

The PIM functionality is expected to be available in January. The capability for Electronic Access Members to direct orders is pending regulatory approval by the SEC.

ISE Background
The International Securities Exchange, the world's largest equity options exchange, was founded on the principle that technology fosters and infuses new efficiencies and operational innovations into securities trading. After developing an innovative market structure that integrated auction market principles into an advanced screen-based trading system, ISE launched the first fully electronic US options exchange in May 2000. ISE continually enhances its trading systems to provide investors with the best marketplace to execute their options orders.
For more information about ISE, its products and its technology, visit www.iseoptions.com.