WealthManagement Magazine

CBOE has launched CBOEdirect HyTS, the Hybrid Trading System. CBOE's revolutionary hybrid trading platform incorporates the speed and efficiencies of a screen-based trading system with the liquidity and price discovery of a competitive, open outcry marketplace. CBOEdirect HyTS effectively provides a unique best of both worlds trading environment, unprecedented in the options industry. direct HyTS

CBOE has launched CBOEdirect HyTS, the Hybrid Trading System. CBOE's revolutionary hybrid trading platform incorporates the speed and efficiencies of a screen-based trading system with the liquidity and price discovery of a competitive, open outcry marketplace. CBOEdirect HyTS effectively provides a unique "best of both worlds" trading environment, unprecedented in the options industry.


CBOE<i>direct</i> HyTS Features
CBOEdirect HyTS offers powerful new features to maximize market speed and efficiency, including:

Individual Streaming Quotes
CBOEdirect HyTS allows in-crowd market makers to input real-time, streaming quotes reflecting their individualized trading interest. CBOE will disseminate the best bid and offer from all market participants, resulting in tighter, deeper markets that can be accessed electronically by customers.

Point & Click Execution
Along with our partner, Belzberg Technologies, CBOE offers the HyTS Terminal - a universal, multifunctional trading solution workstation. Through this terminal, or other point and click technology available in the marketplace, customer, firm and non-market maker Broker-Dealer orders will be afforded automatic execution against displayed quotes and size.

Open Order Book
CBOEdirect HyTS for the first time allows for the "opening of the book" to certain types of B/D orders. Accordingly, these firm and non-market maker B/D orders will be eligible for placement into the electronic book against which they may be executed electronically.

Unique Matching Algorithm
The CBOEdirect HyTS unique matching algorithm retains public customer priority. Additionally, market participants are rewarded based on a formula that balances the concepts of quoting the best price with providing larger size markets at the best price.

Potential for Price Improvement
CBOE believes that there is value in the face-to-face, open outcry marketplace, particularly superior price discovery that allows for price improvement. With CBOEdirect HyTS, trading crowds will continue to offer price improvement to orders of size, complex orders, and other orders that are exposed to the open outcry, auction market. This is a significant advantage not available in an exclusively screen-based environment.

HyTS Terminal
For trading desks, CBOE offers the HyTS terminal, a multi-functional universal access trading solution. Powered by Belzberg Technologies, Inc., CBOE's workstation technology partner, the HyTS terminal provides trading desks with point & click electronic access to CBOE markets, as well as order routing capabilities to other options, stock, and futures exchanges. In the HyTS terminal, CBOE offers the trading community the most sophisticated order submission, routing, and management technology available today.

What is the HyTS Terminal
The HyTS Terminal provides CBOE customers with electronic access and order routing to U.S. options, futures, and stock exchanges, as well as complete access to market data, streaming quotes and order management-all on a single screen.
--Free "Point & click" electronic access to all CBOE equity and index option products
--Order routing to, and real-time quotes from, other U.S. options, futures and stock exchanges
--Order management tool with position monitoring, order status and maintenance and trade-monitoring capabilities
--Real-time market data, including CBOE "quotes with size" and book-depth
--Easy access through any existing internet connection
--Installation on existing end user desk tops
--Keyboard or mouse driven and customizable Hot Keys

Features
NBBO Options Montage
--NBBO in real time- color coded by Exchange
--Point and click order entry
--Fully configurable display
----Theoretical option pricing

Option Order Ticket
--Click on a bid or offer in the NBBO Montage to bring up a pre-populated order ticket
--Easily modify the order ticket
--Contingency orders supported
--Easy to read confirmation ticket protects against order entry error

Order Log
--Keep track of all your orders in one easy to read, completely configurable screen
--Right-click Cancel and Cancel Replace capabilities

More information about CBOEdirect HyTS is available on CBOE's website at http://www.cboe.com/AboutCBOE/Spotlight/CBOEdirectHTS/index.asp.

Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies of this document are available from your broker or The Options Clearing Corporation, 400 S. LaSalle Street, Chicago, IL 60605. CBOE and Chicago Board Options Exchange are registered trademarks of the Chicago Board Options Exchange, Incorporated. 2003 Chicago Board Options Exchange, Incorporated, All Rights Reserved.

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