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"This is an historic moment for the PHLX," said Meyer "Sandy" Frucher, Chairman and CEO of the Exchange. "We are now primed to move aggressively to capitalize on our strengths - our highly regarded proprietary technology that supports our equity, option and regulatory systems and our multiple licenses to trade stocks, options and futures - all are assets that we intend to leverage with potential strategic partners."
The Exchange has experienced strong growth in its core business, particularly in the second half of 2003. Additional accomplishments in 2003 include:
- Five consecutive months of options market share growth
- Multiple options volume and share records in December
- Market innovations, such as the development of PHL XL, the electronic trading initiative, capped fees for upstairs firms and a fixed fee structure for specialists
- Ending the year with approximately $27 million in cash and liquid investments
"Even in these uncertain times in the US markets, PHLX grew," Frucher continued. "We continued to invest in our technology and to manage our finances prudently, positioning ourselves to hit the ground running once our plan was approved by the SEC. With our financial strength, our track record of growth and our key assets, we're looking to ally with strong, innovative third parties."
In November, in separate elections, the seat owners and the members of the Exchange approved the demutualization plan, with greater than 80% of the votes in favor in both elections. The trading community will now access the PHLX by means of a permit issued by the Exchange.
Frucher added, "I would like to thank the SEC for their cooperation and the speed with which they reviewed our plan. We intend to build on our reputation as the marketplace that delivers leading edge technology, multiple trading opportunities and product innovation at the lowest cost in the industry."
