ISE Launches Quarterly Options Products - One Year Pilot Starts Today

The International Securities Exchange (NYSE: ISE) said today that it received SEC approval to launch its new Quarterly options product. Quarterly options will expire at the end of a calendar quarter. For each options class, ISE will offer five expiration dates: four front calendar quarters and the fourth quarter from the following year. The ISE will initially offer Quarterly Options expiring on the last trading days in September and December 2006, plus March, June, and December 2007.

ISE will establish a one year pilot program for the trading of such quarterly options on five Exchange Traded Funds (ETFs) including the Standard & Poor's Depositary Receipts(R) (SPY), Nasdaq-100(R) Shares (QQQQ), Diamonds(R) Trust Series 1 (DIA), iShares Russell 2000(R) Index Fund (IWM), and Select Sector SPDR(R) - Energy (XLE).

"We look forward to offering this alternative Quarterly expiration structure to our customers to allow them to better align options expirations with their equity trading practices," said David Krell, President and Chief Executive Officer of ISE. "We anticipate that this flexible product, developed to meet our clients' needs, will support new investment strategies."

Quarterly options will trade during the ISE's regular trading hours and will expire at the close of business on the last business day of the calendar quarter. The last business day of the calendar quarter will also be the last trading day for Quarterlies. Each Quarterly Options class will have unique OPRA symbols, distinct from those used for the standard monthly, LEAPs(R) or WRAP symbols.