The Electronic Trade Match Feature enables the system to automatically match incoming customer and broker dealer orders with orders resting on the specialists' books.
The Automated Sweep Function automatically sweeps the specialists' books based on movement in the market.
"Our customers are seeing much faster executions now that there is less manual specialist intervention for order management and execution," said William H. Morgan, executive vice president and CIO. The PHLX expects to roll out these new features across the entire options floor over the next month.
Kevin Fischer, a specialist with Timber Hill LLC said: "PHLX's new auto book match system is a boon for all order flow providers using an electronic format for their trades, as turn around times will be eliminated via an instant, automatic report. Also, firm quote rules will now be automated, even for off-floor firm orders interacting with resting customer orders."
The new features are part of Phl XL, a new electronic options trading system that will enhance PHLX's position as the most versatile marketplace, combining the best attributes of electronic and floor-based trading. When fully implemented, Phl XL will enable market makers to electronically deliver streaming quotes producing tighter, deeper markets. It will enable the PHLX to improve electronic access for customers, broker dealers and market makers while leveraging the advantages of a floor-based environment.
Meyer "Sandy" Frucher, PHLX chairman and CEO said, "The investing public and the trading community will reap the benefits of deeper markets and speed of execution as we continue to strengthen Philadelphia's electronic and floor-based trading opportunities."
One of the features of the new system will include electronic access to market makers on and off the floor. The new trading tool will produce tighter and deeper markets by providing low-cost electronic access to market makers delivering quotes electronically.
The Philadelphia Stock Exchange was founded in 1790. The PHLX trades 2,000 stocks, nearly 1,000 equity options, 13 sectors index options, and currency options. For more information about the PHLX and its products, visit www.phlx.com.
