Philadelphia Stock Exchange: New Trading Hours For QQQ Options

Please be advised that the Exchange has designated options on Nasdaq-100 Index Tracking Stock ("QQQ Options") for trading until 4:15 P.M. In the past QQQ Options ceased trading at 4:05 P.M. on the last trading day of the month. Effective Monday, December 31, 2001, QQQ Options will return to the normal daily closing time of 4:15 P.M. on the Phlx on the last trading day of the month.

Consistent with the above, the Exchange has filed with the Securities and Exchange Commission (the "Commission") proposed rule change SR-Phlx-2001-119. SR-Phlx-2001-119, filed for immediate effectiveness, amends Exchange Rule 101, Hours of Business, by changing Supplementary Material Section .01 as set forth below:

New language is underlined; deletions are bracketed

Rule 101. - Hours of Business
Supplementary Material:

.01 Options Trading after 4:02 P.M. A trading rotation in any class of option contracts may be effected even though employment of the rotation will result in the transaction on the Exchange after 4:02 P.M. provided such rotation is conducted pursuant to Rule 1047 or Rule 1047A. [The hours of trading for Options on Nasdaq-100 Index Tracking Stock shall commence at 9:30 AM and end at 4:15 PM, each business day, except the last trading day of each calendar month, when trading in Options on Nasdaq-100 Index Tracking Stock will end at 4:05 PM.] Options on any series of Exchange-Traded Fund Shares so designated by the Exchange may be traded on the Exchange until 4:15 P.M. each business day. The Exchange may close trading at an early time to coincide with the close of trading in a related futures contract on the last business day of the month, or any other day when a related futures contract closes earlier than 4:15 P.M.

If you have any questions regarding the proposed rule change, please contact Carla Behnfeldt, Legal Department, at +1 215 496-5208 or Amy Kitzen, Regulatory Services Department, at +1 215 496-5378.