News Releases

 
NYSE Arca Options to Introduce Pricing Changes for SEC Options Penny Pilot
-Dynamic New Options Trading Platform Readies for Revolutionary Changes in Trading-

New York, Jan. 11, 2007–NYSE Group, Inc. (NYSE: NYX) today announced that NYSE Arca Options will introduce new options pricing in conjunction with the penny pilot program that begins Jan. 26.  Designed to reward participants that improve market quality and provide liquidity, the new NYSE Arca model offers increased efficiency and economic benefits to the growing options industry.

“The trading of options in penny increments fundamentally changes the options marketplace to the benefit of all investors.  Our new pricing structure in penny pilot stocks is designed to further enhance those benefits by encouraging more competitive and tighter markets,” said NYSE Group President and Co-COO, Jerry Putnam.  “Combined with NYSE Arca’s recently implemented market structure and trading platform, our new pricing model will more effectively meet the evolving needs of options participants.”

The following pricing will be implemented for Penny Pilot Stocks:

Execution Type

Post

Take

Customer

$0.25 credit

$0.50

Broker Dealer

$0.25 credit

$0.50

Market Maker

$0.30 credit

$0.50

For the 13 securities already chosen to trade in .01 and .05 increments, NYSE Arca will not assess any payment for order flow charges.  Additionally, there will be no cancellation or quoting fees, the platform will not have any delay in quote dissemination, and will offer depth of book information for up to 5 levels.

For one issue, the QQQQ, all series will trade in penny increments.  Accordingly, NYSE Arca will eliminate the Lead Market Maker and trade the security in strict time price priority.

NYSE Arca Options offers immediate, cost-effective electronic order execution in nearly 2,000 options issues.  The newly-developed system provides automatic executions for customer and broker dealer orders as well as a low cost venue for both Lead Market Makers and Market Makers to stream quotes from the trading floor or remotely.  Blending speed and price-time priority with Lead Market Maker participation, NYSE Arca Options offers expanded and innovative order types, along with greater transparency, reliability and performance.

For information on the platform, including registered LMMs and MMs, expanded order types, and our competitive pricing, please visit:  http://www.nyse.com/options.

Related Info:
  Making Cents of the Penny Pricing Pilot (pdf)

 

About NYSE Group, Inc
NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange LLC (the “NYSE”) and NYSE Arca, Inc. (formerly known as the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. In 2006, on an average trading day, 2.3 billion shares, valued at $86.8 billion, were traded on the exchanges of the NYSE Group.

The NYSE is the world’s largest and most liquid cash equities exchange. The NYSE provides a reliable, orderly, liquid and efficient marketplace where investors buy and sell listed companies’ common stock and other securities.  On December 31, 2006 , the operating companies listed on the NYSE represented a total global market capitalization of $25.0 trillion.

NYSE Arca, Inc. operates the former ArcaEx®, the first open, all-electronic stock exchange in the United States , which has a leading position in trading exchange-traded funds and exchange-listed securities. NYSE Arca, Inc. is also an exchange for trading equity options.  NYSE Arca, Inc.’s trading platforms provide customers with fast electronic execution and open, direct and anonymous market access.

NYSE Regulation, an independent not-for-profit subsidiary, regulates member organizations through the enforcement of marketplace rules and federal securities laws. NYSE Regulation also ensures that companies listed on the NYSE and NYSE Arca meet their financial and corporate governance listing standards.

For more information on NYSE Group, go to: www.nyse.com.

Cautionary Note Regarding Forward-Looking Statements
Certain statements in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on NYSE Group’s current expectations and involve risks and uncertainties that could cause NYSE Group’s actual results to differ materially from those set forth in the statements. There can be no assurance that such expectations will prove to be correct. Actual results may differ materially from those expressed or implied in the forward-looking statements. Factors that could cause NYSE Group’s results to differ materially from current expectations include, but are not limited to:  NYSE Group’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk and U.S. and global competition, and other factors detailed in NYSE Group’s Annual Report on Form 10-K and other periodic reports filed with the U.S. Securities and Exchange Commission. In addition, these statements are based on a number of assumptions that are subject to change. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by NYSE Group that the projections will prove to be correct. NYSE Group undertakes no obligation to release any revisions to any forward-looking statements.



Contact: Eric Ryan
Phone: 212.656.2411
Email:  eryan@nyse.com