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Chicago Exchange Move For Price Improvement

Traders Magazine, December 2000

Peter Chapman

In a bid to stay competitive in the evolv ing world of decimal trading the Chicago Stock Exchange (CHX) is revamping its price improvement services. The move follows similar changes made by third market rivals Bernard L. Madoff Investment Securities and the Knight Capital Markets division of Knight Trading Group.

The CHX, pending approval by the Securities and Exchange Commission, plans to launch its SuperMAX 2000 platform. That platform gives automatic one-cent price improvement to all eligible 100-share orders, but allows the 19 individual specialists to set their own rates for larger orders on a stock-by-stock basis. Currently, specialists must conform to a four-tier SuperMAX program that boxes them into pre-determined price improvement parameters.

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