The Philadelphia Stock Exchange and agency broker-dealer Order Execution Services Holdings are to develop an outbound routing service as part of the new PHLX electronic equities market structure. It is expected to launch in the third quarter of 2006.
Under terms of the agreement, OES will provide the facility broker-dealer with outbound routing technology, technical and operational services, and order audit trail compliance tools to assist the PHLX in meeting Regulation NMS requirements.
OES says it will provide the services for the operation of the PHLX facility as well as provide agency brokerage services to handle equities orders from the PHLX sent to other exchanges and market centers.
As it becomes a fully-automated electronic equities exchange, the PHLX will be better able to compete against other exchanges, market centers and ECNs, while proactively complying with Reg. NMS and other regulations, commented David Scheckel, CEO of OES.