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FLEX OPTIONS TO BEGIN TRADING AT CBOE ON FRIDAY, FEB. 26

 CHICAGO, Feb. 23 /PRNewswire/ -- The Chicago Board Options Exchange (CBOE) will launch its FLexible EXchange Options ( FLEX Options'') on Friday, Feb. 26. FLEX Options are an exchange-traded alternative for institutional users of the over-the-counter (OTC) options market. The Securities and Exchange Commission (SEC) approved the CBOE's proposed rules for FLEX Options this week. CBOE initially will offer FLEX Options on the S&P 100 (OEX) and S&P 500 (SPX) stock indexes.
 CBOE Chairman and CEO Duke Chapman said, Over-the-counter index options have grown into a multibillion-dollar market. FLEX Options provide institutional asset managers with an alternative to OTC options with the benefits of an exchange setting, including competition in price discovery, liquidity, transparency, secondary market fungibility and the elimination of trading counter-party credit risk by having The Options Clearing Corp. (OCC) issue and clear the options.''
 Reflecting institutional investor need to establish large positions, transactions in which a FLEX series is created must represent at least $10 million in underlying value. FLEX Options will allow these institutional market participants, such as pension funds, money managers and trust funds, to select various terms of an option contract -- length of time, strike price, exercise style and expiry value -- to precisely meet their investment objectives.
 At the same time, they will be provided the benefits of an exchange- listed product. All trades will be cleared, settled and counter-party performance guaranteed through The OCC.
 Using FLEX Options, market participants may select any strike price (initially to one decimal place), any expiration date up to five years (certain blackout dates apply at traditional third-Friday-of-the-month expirations) and exercise style (European, American, Capped).
 CBOE market makers will compete for orders in an open outcry format. Eight have signed up to be appointed market makers to provide the primary line of liquidity. They are Archelon Partners, CRT, G-BAR Corp., Hull Trading, KC-CO, John Stafford, Swiss Bank Corporation/O'Connor, and Susquehanna Investments.
 Quote and last sale information for FLEX Options will be made available to quote vendors through the Options Price Reporting Authority (OPRA) via a special format.
 CBOE, regulated by the Securities and Exchange Commission, is the pioneer of listed options and the world's largest options marketplace. In addition to options on more than 380 stocks, the exchange lists options on the Standard & Poor's 100 and 500 stock indexes, options on the Russell 2000 Index, the CBOE BioTech Index, the FT-SE 100 Index and options on short-term and long-term interest rates.
 -0- 2/23/93
 /CONTACT: Patricia Campbell, 312-786-7927, or Bonnie Greenberg, 312-786-7393, both of CBOE/


CO: Chicago Board Options Exchange ST: Illinois IN: FIN SU:

TM -- NY085 -- 9549 02/23/93 15:56 EST
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Date:Feb 23, 1993
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