An Electronic Exchange with a Twist

Ken Liebler's floor-less Boston Options Exchange won't have traditional seats and will be based on the auction model of trading

Ken Liebler knows how to run a bourse. He's a former president of the American Stock Exchange and current chairman of the regional Boston Stock Exchange. Now, Liebler is building a new exchange that will allow investors to trade options -- the right to buy or sell securities or commodities at fixed prices. Included in the technology he'll use for his new Boston Options Exchange is a unique system that mimics the New York Stock Exchange's auction market. Like an increasing number of exchanges, the BOX won't have a trading floor and will have myriad market makers for specific options issues. BusinessWeek Online Senior Reporter Jane Black interviewed Liebler on Sept. 18. Here are edited excerpts from that conversation:

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