Trading Edge will work with the CBOE to build a highly customized web-based system for trading CBOE's FLEX options, which allow institutional markets/participants, such as pension funds, money managers and insurance companies, to meet their investment objectives by customizing certain terms of an option contract. The joint venture will be funded by Trading Edge and co-marketed by the CBOE.
"Since their inception, CBOE's FLEX options have traded $420 billion and have quickly become a viable alternative to the over-the-counter market," said William J. Brodsky, Chairman and CEO of the Chicago Board Options Exchange. "To ensure the continued success of FLEX options trading, the CBOE has aligned with Trading Edge to provide investors with a leading system for online trading. This alliance reinforces our commitment to empowering investors through cutting-edge trading capabilities."
"We are very proud to have been chosen as the online trading technology partner of the Chicago Board Options Exchange," said Murray Finebaum, Chairman and CEO of Trading Edge. "Just as our success with BondLink has given institutional investors total anonymity, security and price-transparency in real-time, our approach will be as successful in impacting CBOE's FLEX options."
Launched in April 1999, BondLink currently offers secure trading of high-yield, emerging market and convertible notes and will introduce municipal bond trading in the second quarter of 2000. Hedged convertible note trading will be implemented in the third quarter of 2000, with investment grade bonds added shortly thereafter. BondLink is currently installed on more than 770 workstations, representing nearly 300 institutions.
CBOE, the world's largest options marketplace and the creator of listed options, is regulated by the Securities and Exchange Commission (SEC). For additional information about the CBOE and its products, access the CBOE site on the World Wide Web at http://www.cboe.com or call 1-800-OPTIONS.
Created in 1993 by the CBOE, and initially listed on the S&P 100®, S&P 500® and the Russell 2000® indices, FLexible EXchange Options, known as FLEX® Options, offer an alternative to over-the-counter options, enabling institutional market users to customize certain terms of the option contract. Designed for initial transactions of at least $10,000,000 of national principal, FLEX options enable competition in price discovery, liquidity and transparency. Today, the CBOE offers FLEX Options on more than 700 equities, including America Online, Inc. (ticker symbol AOL); Cisco Systems (CYQ); Citigroup, Inc. (ZZU); CMGI, Inc. (GCB); Dell Computers (DLQ); International Business Machines (IBM); Lucent Technologies (LU); Microsoft (MSQ); Qualcomm (AAF) and Yahoo! Inc. (YHO).
Trading Edge, Inc. is a fixed-income securities broker with offices located in New York City, Washington, D.C. and Santa Monica, California. In addition to marketing and developing BondLink and BondLink News Service, the Company is a member of the National Association of Securities Dealers (NASD) and the Securities Investor Protection Corporation (SIPC). Founded in 1997, Trading Edge previously received funding from Brentwood Venture Capital, Media Technology Ventures, Technology Crossover Ventures, three of the nation's foremost strategic partners specializing in early-stage and emerging technology and information companies. Credit Suisse First Boston also invested in Trading Edge and acquired an equity position in December 1999.
