ISE Launching Quarterly Options - Innovative New Product Responds To Clients' Needs

The International Securities Exchange (NYSE: ISE) said today that it will launch a new options product, Quarterlies, that expires at the end of the calendar quarter. Options currently expire on the Saturday following the third Friday of each month. ISE developed this innovative new product in response to member interest in an alternative expiration structure that allows options to expire at the end of each calendar quarter.

ISE will establish a one year pilot program for the trading of such quarterly options on five Exchange Traded Funds (ETFs) including the Standard & Poor's Depositary Receipts(R) (SPY), Nasdaq-100(R) Shares (QQQQ), Diamonds(R) Trust Series 1 (DIA), iShares Russell 2000(R) Index Fund (IWM), and Select Sector SPDR(R) - Energy (XLE). Trading in Quarterlies is expected to be initiated in the third quarter, pending SEC approval.

"Our members have asked us to develop an alternative expiration structure to line up options expiration to their equity trading practices," said David Krell, President and Chief Executive Officer of ISE. "As a result, we have developed a new options trading product that provides them the flexibility of quarterly expirations. ISE has a customer-centric focus whereby we strive to craft unique products that meet our clients' needs. Our new quarterly options product is in keeping with this tradition."