Morgan Stanley Begins Trading Options On Pacific Exchange

The Pacific Exchange (PCX) today announced that Morgan Stanley will act as Lead Market Maker (LMM) in more than 100 issues, including 33 of the 120 most active issues. Morgan Stanley began trading options on Bank One and SBC Communications today, and will supplement additional names in the weeks ahead (a list of the options issues allocated to Morgan Stanley is attached).

This is Morgan Stanley's second options exchange operation. The Firm is a Primary Market Maker in more than 100 names on the International Securities Exchange."We will be the LMM in a number of very active issues, and intend to deliver aggressive, competitive markets in the issues we've been allocated," said Thomas R. Cardello, a Managing Director of Morgan Stanley. "Additionally, this strategically positions us for the launch of PCX Plus."

PCX Chairman and CEO Philip D. DeFeo said, "We are delighted to welcome a firm of Morgan Stanley's stature and experience to our floor. We are confident our customers will benefit from their commitment to tight, deep markets, and that they will attract additional order flow and liquidity to the Pacific Exchange."

PCX Plus is scheduled to be launched early in the fourth quarter of 2003. The Securities and Exchange Commission approved the system on Tuesday, May 13. PCX Plus will allow firms and traders to make markets on the Pacific Exchange from remote locations as well as the existing trading floor.