The American Stock Exchange Announces Suspension Of Payment For Order Flow

The American Stock Exchange® (Amex®), announced that it suspended its exchange-administered payment for order flow in options, effective August 1, 2001. The Exchange instituted the payment program in July 2000 in response to competitive actions. The Amex said its decision would not affect payment for order flow programs conducted by individual specialist firms, and that the Exchange reserved the right to reinstate the program.

"We have consistently maintained that payment for order flow is not in the best interest of investors or the markets in general. As always, we will continue to monitor the competitive landscape and respond accordingly," said Salvatore F. Sodano, Amex chairman and CEO.