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|
BOX Newsletter 7, June 8,
2004 |
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QQQs
Start Trading on BOX June 14, 2004
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BOX will launch trading of options on
Nasdaq 100 Trusts ("QQQs") at
the market opening on June 14, 2004, completing
the roll out of BOX's initial list of
options classes. All of the options series
for the QQQs will be listed, excepting
the June 2004 calls and puts, with a total
of eleven market makers.
The
PIP functionality will be available as
it is for all other options classes listed
on BOX. BOX
plans to list additional options classes
later this summer.
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| First
Advertising by BOX |
BOX's first advertising campaign began in
the June 5, 2004 issue of Barron's. A reproduction
of the text is provided below.
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| BOX
Market Share for May, 2004 |
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The table below provides the national
market share for BOX for the ten most
active classes on BOX during the last
week of May, 2004, together with the average
daily volume (ADV) for each.
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|
Class |
ADV |
OCC
% |
|
Class |
ADV |
OCC
% |
| EBAY |
3,875
|
9.3%
|
|
WM
|
1,366
|
3.1%
|
|
AMZN
|
2,005
|
6.4%
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|
MO
|
1,328
|
2.9%
|
| YHOO |
1,904
|
3.9%
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BAC
|
1,197
|
6.2%
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MSFT
|
1,732
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4.9%
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|
SMH |
1,176
|
2.1%
|
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CSCO
|
1,487
|
2.5%
|
|
AMR
|
1,080
|
4.5%
|
BOX
market
share Information for each trading session
is provided on the BOX website. The BOX website
also provides daily
statistics for overall trading volume and
price improvement results.
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| Boston
Options Exchange
Highlights & Advantages |
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Fully
Automated - Fully electronic equity options
exchange. |
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Low
Entry Costs - No seats to buy or rent. |
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Price
and Time Priority - orders will be handled
on a strict price/time priority without a specialist
controlling the price. There is no wheel for "allocating"
trades that disincents competition.
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Price
Improvement Auctions – BOX includes a
unique electronic mini-auction that will attract,
subject to price improvement, orders that would
otherwise be printed elsewhere at the NBBO.
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Multiple,
Competing Market Makers - BOX places no limits
on the number of market makers who may continuously
quote on a given options class. They compete equally
on a price and time basis.
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Anonymous
- BOX does not provide information on broker
identification when an order is displayed in the
order book. Furthermore, BOX does not provide
counterparty identification for trade executions.
This anonymity encourages competition, rather
than the "herd mentality" which discourages
price competition at some exchanges.
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Simple
Cost Structure - traders only pay when they
trade, there are no annual fees. No trade execution
fees for public customer orders.
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Transparent
- Order book broadcasting five best price limits
allows traders to see market depth.
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Open
Architecture – Each trader may connect
whatever trading system he wishes.
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Equal
Treatment of Orders - BOX does not discriminate
order priority on the basis of the type of account.
All orders on the BOX book are available to all
traders on a first come, first served basis with
no limitation on professional order executions.
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