International Securities Exchange

"'Unreferenced|date=July 2007Infobox_Company
company_name = International Securities Exchange
company_
key_people = Gary Katz, CEO
company_type = Exchange
foundation = May 26, 2000
location = New York
products = Options, Stock, Alternative Markets, Market Data
homepage= [http://www.ise.com/ www.ise.com]

International Securities Exchange Holdings, Inc, International Securities Exchange Holdings, Inc., is a wholly owned subsidiary of German derivatives exchange Eurex.

Founded in 2000, the ISE began its inception in 1997 with then-chairman of E-Trade, William A. Porter and his colleague, Marty Averbuch. They approached David Krell and Gary Katz about their concept and the four founded what is today the International Securities Exchange, the world’s largest equity options exchange to date.

Launched as the first fully-electronic US options exchange, ISE developed a unique market structure for advanced screen-based trading and now is among the leading options exchanges in the world.

The exchange currently consists of an options exchange, a stock exchange, an alternative markets platform and market data. ISE offers index options, including a portfolio of proprietary index products, FX options based on foreign currency pairs, and enhanced market data products for sophisticated investors.

ISE Stock Exchange launched in September 2006 with strategic partners. It includes a MidPoint Match platform which offers investors continuous price improvement. MidPoint Match was integrated with a fully-displayed Best Bid Offer (BBO) market in 2006. In August 2008, ISE Stock Exchange announced a partnership with Electronic Communication Network (ECN) DirectEdge. The deal, projected to close in the fourth quarter of 2008, will make the ISE Stock Exchange a wholly owned subsidiary of DirectEdge and will give ISE an ownership stake in DirectEdge. [http://online.wsj.com/article/SB121944684198065119.html ISE Joins Direct Edge to Gain U.S. Share] Wall Street Journal ]

ISE’s alternative markets business currently consists of an events market trading platform known as Longitude. Longitude’s patented and proprietary technology provides a parimutuel structure for derivatives auctions which results in greater trading and pricing flexibility for market participants.

ISE Options Exchange

The ISE Options Exchange currently lists over 1200 equity, index, ETF and quarterly options. Most recently, the exchange also began trading FX options, options based on foreign currency movements. ISE introduced index options in October 2003 and later in 2004 launched ISE Sector Indexes; industry indexes that track the performance of publicly traded companies in various industries. In 2007, ISE announced a partnership with First Trust to launch ETFs based on ISE proprietary indexes. The Exchange also announced a partnership with U.S. Futures Exchange (USFE) to launch several cash-settled futures contracts based on the ISE family of proprietary indexes.

FX Options were launched in April 2007. These options are exchange-listed securities that can be accessed through most major brokerage accounts. All ISE FX Options have U.S. Dollar-based underlying values, which have an underlying value similar to traditional equity or index options and are cash-settled, eliminating the need to hold the actual foreign currency.

ISE Stock Exchange

The ISE Stock Exchange is an electronic marketplace offering two primary capabilities on one platform: "MidPoint Match" is an exchange-based, non-displayed market. Members can use MidPoint Match to trade equities instantaneously at the exact midpoint price of the National Best Bid and Offer (NBBO). "Displayed market" is a fully-electronic displayed market of the Best Bid and Offer trading the common stocks and ETFs listed on the NYSE, Nasdaq and Amex.

ISE Alternative Markets

ISE Alternative Markets provides enhanced risk management tools for investors through the creation of products in economic derivatives, corporate earnings options, property derivatives, catastrophe risk and asset volatility products, all traded on a patented, parimutuel trading platform called Longitude.

Timeline

References

ee also

* Call option
* put option
* moneyness
* option time value
* put-call parity
* strike price
* binomial options model
* volatility smile
* option adjusted spread
* option screener
* option time value
* index options

External links

* [http://www.ise.com www.ise.com]