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NASDAQ, CBOE ANNOUNCE AGREEMENT FOR OPTIONS TRADING ON THE NASDAQ-100(R)

 CHICAGO, Sept. 20 /PRNewswire/ -- The Chicago Board Options Exchange (CBOE) and the Nasdaq Stock Market, Inc. today announced an agreement which would allow the CBOE to list options on the Nasdaq-100(R), a benchmark index for large growth stocks traded on the Nasdaq Stock Market(sm).
 CBOE will soon file with the Securities and Exchange Commission (SEC) to trade options and LEAPS(R) (Long-term Equity AnticiPation Securities) on the Nasdaq-100.
 "Retail investors view the Nasdaq-100 as a proxy for some of the most highly traded issues on the Nasdaq Stock Market, the fastest growing equities market in the U.S.," said Joseph R. Hardiman, president, the Nasdaq Stock Market. "Nasdaq 100 options will give investors a new tool for market timing and hedging in Nasdaq(R) stocks, allowing more flexibility in managing their portfolios."
 CBOE Chairman Duke Chapman said, "Options on the Nasdaq-100 are likely to appeal to retail investors, as well as those who invest primarily in active Nasdaq-listed stocks. Nasdaq-100 options will add a new and valuable dimension to CBOE's index options complex, which currently includes the two most actively traded index options in the world -- the S&P 100 and S&P 500 stock indices; nine domestic CBOE and S&P sector indices; the FT-SE 100, the benchmark of the U.K. stock market; and the Russell 2000 Index(R), the most widely followed U.S. small-cap equity measure."
 The Nasdaq-100 is a capitalization-weighted index comprising many of the 100 largest non-financial stocks in the Nasdaq National Market. Since 1991, the Nasdaq-100 index increased 85.8 percent, while the S&P 500 rose 40.4 percent.
 The cash-settled Nasdaq-100 options will be based on half of the current Nasdaq-100 index level, times $100; feature European exercise; and be morning-settled (i.e., settlement value will be calculated using the opening prices of the component securities on the business day prior to expiration). The Nasdaq-100 index (ticker symbol: IXONE) is calculated and disseminated by the NASD every 15 seconds throughout the trading day.
 Nasdaq-100 LEAPS will be based on 1/10th of the value of the standard options.
 Trading hours will be 8:30 a.m. to 3:15 p.m. Chicago time.
 The Nasdaq Stock Market is the second largest stock market in the world as measured by dollar trading volume. Nasdaq is home to many of America's growth and high-tech companies. More than 4,300 companies trade on Nasdaq, which has a market capitalization of approximately $735.9 billion.
 During the first nine months of 1993, Nasdaq set net records in its composite (to 749.71) and average daily share (248 million versus 190.8 million in 1992) and average daily dollar volume ($5.1 billion versus $3.5 billion in 1992).
 The Nasdaq Stock Market is the fastest growing equity market in the U.S. During the last 10 years, dollar volume of trading on Nasdaq climbed 958 percent (from $84.2 billion to $890.8 billion), while share volume soared 478 percent (from 8.4 billion to 48.5 billion shares).
 CBOE, regulated the SEC, is the pioneer of listed options and the world's largest options marketplace, accounting for approximately 93 percent of the U.S. index options market share in 1993.
 -0- 9/20/93
 /CONTACT: Robert Ferri, 202-728-8955, or James D. Spellman, 202-728-8197, both of Nasdaq; or Stan Lata, 312-786-7392, or Bonnie Greenberg, 312-786-7393, both of CBOE/


CO: Nasdaq; Chicago Board of Exchange ST: Illinois IN: FIN SU:

SM -- NY079 -- 3750 09/20/93 14:36 EDT
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Publication:PR Newswire
Date:Sep 20, 1993
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