The Philadelphia Stock Exchange Statement On Short-Selling

– In response to inquiries, Meyer “Sandy” Frucher, Chairman and CEO of the Philadelphia Stock Exchange (PHLX), has the following statement on the issue of short-selling:

"We understand that in this economic climate, there is increased focus on short-selling. In terms of the effect on the options markets, we believe options market liquidity will diminish if options market makers are not exempt from the SEC's order. Options market makers use short selling in stocks to hedge their options positions, and the new "pre-borrow" requirement will be burdensome and expensive to comply with. We are working, as others are, to ask the SEC for exemptive relief from the "pre-borrow" requirement."

The Philadelphia Stock Exchange was founded in 1790. The PHLX trades more than 7,000 stocks, 2,600 equity options, 15 sectors index options, options on all major currencies, and futures through its subsidiary, The Philadelphia Board of Trade (PBOT). For more information about the PHLX and its products, visit www.phlx.com