FOR IMMEDIATE RELEASE                                     2000-17
                                
  SEC Approves International Securities Exchange's Application
            to Become First New Exchange in 27 Years
                                
      Washington, DC, February 24, 2000 -- The Securities and
Exchange Commission today approved the International Securities
Exchange's application to become a registered exchange.  The ISE
is the first exchange to register with the Commission, since the
Chicago Board Options Exchange in 1973 -- 27 years ago.

      The ISE is a fully electronic exchange for trading options
on U.S. equity securities, combining screen-based trading with
auction market principles.  It will not have a physical trading
floor like the other options exchanges.  Ultimately, the ISE
intends to trade 600 of the most active options classes.

     Although it has yet to begin operating, ISE has already had
a positive impact on the options market.  Since ISE filed its
application with the Commission on February 2, 1999, the U.S.
options exchanges have begun to multiply list the most active
options classes, reducing spreads by between 15 and 42 percent.
Moreover, transaction fees on the options exchanges have been
reduced during the past year.

     Options Linkage -- The ISE will participate in the options
market linkage.  Today, the Commission also published a notice
requesting public comment on three intermarket linkage plans
filed by the options exchanges.  The ISE submitted a plan
identical to that filed by Amex and CBOE.

      Self-Regulation -- In registering as an exchange, the ISE
becomes a self-regulatory organization and must enforce
compliance by its members with both its rules and with the
federal securities laws.  The ISE intends to fulfill this
obligation in the following ways:

  *  First, the ISE intends to conduct its own surveillance of
     trading on its market.
  
  *  In addition, the ISE intends to enter into regulatory
     allocation agreements with NASD Regulation and with the
     other options exchanges.  Under these allocation agreements,
     another SRO will take responsibility for ensuring that firms
     that are members of both that SRO and the ISE comply with
     common rules.  All options markets participate in these
     allocation agreements in order to eliminate duplicative and
     overlapping supervision by more than one SRO.
  
  *  The ISE will contract on a payment for services basis with
     NASD Regulation to perform certain regulatory functions that
     are not covered by the above agreement.  Under this
     contract, although NASD Regulation will perform regulatory
     functions, the ISE will remain ultimately responsible for
     ensuring that the responsibility is fulfilled.

     To Be Done Before ISE Begins Trading -- Although ISE is now
a registered exchange, before it can begin trading it must become
a member of the Options Clearing Corporation and join the
organization responsible for consolidation and dissemination of
options market quotations -- OPRA.

     In addition, ISE intends to file further rules specifying
its fees and its procedures for allocating trades among its
market makers.  Market participants will have an opportunity to
comment on these proposals before the Commission approves them.
                                
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