ISE Plans Second Market Launch - Will Double The Number Of Listed Options Classes

The International Securities Exchange (NYSE: ISE) announced today the introduction of a Second Market that will list approximately 850 additional equity options. The "Second Market" will leverage ISE's existing highly flexible technology and scalable infrastructure. The listing of these equity options classes will double the total number of options classes traded at ISE. Trading is scheduled to begin in the third quarter of 2006, pending SEC approval.

"We originally launched ISE with a focus on those equity options that represented 90% of the volume to bring competition to this market. In response to our members' request that we provide competitive, deep markets in these options, we have decided to expand our trading into additional, less liquid issues," said David Krell, President and Chief Executive Officer of ISE. "This will provide our customers with all the advantages they have come to associate with trading on the ISE in our "First Market" and the benefits of a truly competitive marketplace."

Options classes traded in the Second Market will comply with existing listing requirements and trade under existing ISE trading rules. Existing market makers will be eligible to make markets in the Second Market, and participation will not require purchasing an additional membership. Market Makers in the Second Market will be given the freedom to choose which options classes they wish to trade and a single monthly access fee will allow them to make markets in all of the options classes in the Second Market. New market makers who have not purchased trading rights in the First Market (CMM Memberships) will be able to make markets in the Second Market without purchasing a trading right. ISE anticipates that this open access structure will attract new market makers for trading in these issues.