SOURCE: Pacific Exchange Inc.

September 02, 2005 14:00 ET

Pacific Exchange to Trade Diamonds Options

SAN FRANCISCO, CA -- (MARKET WIRE) -- September 2, 2005 -- The Pacific Exchange (PCX) announced that on Tuesday, September 6, 2005, it will begin trading options on Diamonds Trust (PCX: DIA).

Diamonds options will trade on the March expiration cycle with exercise limits set at 30,000,000 shares. The issue will be traded by lead market maker Catherine Clay of Timber Hill, LLC.

Diamonds options are eligible for listing by multiple exchanges without licensing agreements, pursuant to a court decision issued yesterday, in a case involving McGraw-Hill, Dow Jones, and the International Securities Exchange (ISE). They had previously traded exclusively on a single options exchange.

"This is a very positive development for public customers," said Philip D. DeFeo, PCX Chairman and CEO. "As we've seen consistently, the competition of multiple trading narrows spreads, reduces transaction fees, and improves market quality, and those improvements generate higher trading volumes for everyone. We look forward to the day when all options products are traded competitively."

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