The International Securities Exchange (ISE) said on July 05 it plans to list about 850 additional equity options by launching a second 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, ISE president and chief executive, in a statement.
The largest US equity options exchange said trading is scheduled to begin in the third quarter of 2006, pending approval by the US Securities and Exchange Commission.
ISE said the launch would double the total number of options classes offered at the New York City-based market.
Existing market makers will be eligible to make markets in the second market, which would have access to the ISE's existing technology and infrastructure. Participation will not require buying an additional membership.
Market makers in the second market can choose which options issues 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, ISE said.
New market makers who have not purchased trading rights in the first market will be able to make markets in the second market without buying a trading right.
ISE hopes that this open access structure will attract new market makers for trading in these issues.
ISE's equity options market share last month stood at 31.6 percent just above chief rival, the Chicago Board Options Exchange, at 30.7 percent, according to Options Clearing Corp data.