The Philadelphia Stock Exchange Supports SEC Chairman Cox’s Penny Quoting In Options Recommendation - PHLX Chairman Frucher Asks Other Options Exchange Heads To Convene As Soon As Possible In Washington, DC To Discuss

Chairman and CEO Meyer “Sandy” Frucher, upon receipt of a letter from Christopher Cox, Chairman of the SEC, regarding the implementation of a pilot program for quoting options in penny increments, called for an immediate response from the heads of the six U.S. options exchanges.

“I have asked the other exchanges to convene as soon as possible in Washington to discuss the myriad issues that quoting options in pennies will bring to the American derivatives markets,” said Frucher.

Chairman Cox’s letter to all the options exchanges calls for a pilot program in which a limited number of options will be quoted in pennies; such a program would be implemented and launched on January 29, 2007.

“The options exchanges stand ready to address collaboratively affiliated issues like quote mitigation and best execution standards and to ensure that the investing public continues to enjoy the benefits of a growing, liquid marketplace,” added Frucher.

The Philadelphia Stock Exchange was founded in 1790. The PHLX trades 1,943 stocks, more than 2,200 equity options, 19 sectors index options, and currency options and futures. For more information about the PHLX and its products, visit www.phlx.com.