NASDAQ Announces Options Strategy - Stock Market Will Route Options Orders With Equities

The Nasdaq Stock Market, Inc. (NASDAQ: NDAQ) today announced that it will begin to offer customers connectivity and routing to options exchanges in the first quarter of 2006. NASDAQ is already a member of the following exchanges through its Brut broker-dealer: American Stock Exchange (AMEX), Boston Stock Exchange (BOX), International Securities Exchange (ISE), Pacific Stock Exchange, and The Philadelphia Stock Exchange (PHLX). Additionally, NASDAQ plans to obtain access to the Chicago Board Options Exchange (CBOE).

"Over the past year, NASDAQ has rolled out strategic product developments and offered customers linkage solutions focused on the changing regulatory landscape," said Chris Concannon, Executive Vice President of NASDAQ Transaction Services. "With the shift in options trading to electronic platforms, options volumes have grown 20% year over year. As the options industry continues to evolve, we are poised to become an attractive options smart-routing provider for market participants," added Mr. Concannon.

In an effort to continue offering market participants a suite of connectivity solutions, NASDAQ is adding options routing to its already robust routing network that includes smart-order routing in NASDAQ and exchange-listed securities as well as high-speed, direct connectivity to the NYSE. NASDAQ will not match option orders, but will offer the ability to route the orders to exchanges, making it easier for customers to leverage NASDAQ's high-speed, low-cost linkage system in equities and options all on the same platform.

"Traders are increasingly looking for ways to trade more efficiently across all asset classes. By leveraging its distribution network for options trading, NASDAQ is positioning itself as a one-stop platform offering customers a fast, reliable, and anonymous connectivity solution for both equities and options trading at a low-cost," added, Mr. Concannon.