ISE will establish a one year pilot program for the trading of such quarterly options on five Exchange Traded Funds (ETFs) including the Standard & Poor's Depositary Receipts(R) (SPY), Nasdaq-100(R) Shares (QQQQ), Diamonds(R) Trust Series 1 (DIA), iShares Russell 2000(R) Index Fund (IWM), and Select Sector SPDR(R) - Energy (XLE). Trading in Quarterlies is expected to be initiated in the third quarter, pending SEC approval.
"Our members have asked us to develop an alternative expiration structure to line up options expiration to their equity trading practices," said David Krell, President and Chief Executive Officer of ISE. "As a result, we have developed a new options trading product that provides them the flexibility of quarterly expirations. ISE has a customer-centric focus whereby we strive to craft unique products that meet our clients' needs. Our new quarterly options product is in keeping with this tradition."