"This is a significant step forward for us," said PCX Chairman and CEO Philip D. DeFeo. "PCX Plus is a key element of our business strategy. It will strengthen our competitiveness, providing more robust markets for all market participants, as well as new opportunities for firms that trade electronically. The SEC's review of the proposal was thorough and diligent, and we are pleased to receive its approval."
PCX Plus is both a new technology platform and a new market structure for the Pacific Exchange and the options industry. It is designed to better serve existing participants, attract market makers, and provide additional liquidity to the Exchange's customers. PCX Plus expands the options marketplace, providing firms and traders the ability to make markets on the floor or from remote locations.
Remote market makers will have the flexibility to choose the issues they trade on PCX Plus, and to easily change those issues, a unique feature in the options markets. Trade allocation models will reward both floor and remote market makers who make aggressive, liquid markets, thus encouraging price improvement on all orders. Order flow firms' connectivity to the PCX will not be affected, however, their customers will benefit from deeper markets created by the additional liquidity from multiple market makers on and off the floor.
"PCX Plus is ambitious and progressive," said DeFeo. "Our members are keenly interested in adding advanced trading technology to their operations. They worked with us to design a flexible system offering market participants substantial value and opportunity, regardless of their physical locations. It expands our reach and opens our markets to the entire financial community. We are very encouraged by the interest PCX Plus is generating in the marketplace."
PCX Plus is scheduled to launch early in the fourth quarter of this year.
