International Securities Exchange Adopts New Trading Platform

The International Securities Exchange, the third-largest U.S. options exchange last month, began trading contracts today on a new technology platform jointly developed with Deutsche Boerse AG. (DB1)

The system, called Optimise, is designed for high-volume, fast electronic trading. ISE, based in New York, had used a system licensed from Nasdaq OMX Group Inc. (NDAQ), which runs the Nasdaq OMX PHLX exchange that was the second-biggest U.S. options platform in March. ISE is owned by Eurex, whose parents are Frankfurt-based Deutsche Boerse and Zurich-based SIX Swiss Exchange AG.

“The new system achieves the ideal blend of speed, capacity and rich functionality that are three critical differentiators in the highly competitive U.S. options industry,” Daniel Friel, ISE’s chief information officer, said in a statement.

ISE handled 17 percent of U.S. equity derivatives volume in March. The largest was the Chicago Board Options Exchange at 26 percent followed by PHLX at 22 percent. Deutsche Boerse has agreed to purchase New York-based NYSE Euronext, which owns two U.S. options markets: NYSE Amex, which handled 14 percent of trading, and NYSE Arca, with 10 percent.

Ten options began trading on the system today, the ISE statement said. All options will be moved over in stages by the end of July.

“With the launch of Optimise at ISE, we have taken an extremely important first step in establishing a new foundation for the technology infrastructure at Deutsche Boerse,” Jurg Spillman, Optimise program manager, said in the statement.

To contact the reporter on this story: Nina Mehta in New York at nmehta24@bloomberg.net.

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net.

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