OES said that PRO, a single-purpose broker dealer that provides agency order routing services, is carrying out instructions and directions from the PHLX's XLE trading system by transmitting orders to all other required trading centers. OES is also providing the PHLX with other services, including sponsoring an agency broker-dealer that accesses all trading centers on a sponsoring agent basis. In addition, PRO's routing functionality provides technical, operational and compliance services to help the PHLX comply with Reg NMS.
"The ability of PRO to provide the PHLX and its members an excellent NMS-compliant routing service to complement the new PHLX XLE equity platform has enhanced the PHLX's ability to effectively compete in the Reg NMS electronic marketplace," said Meyer S. Frucher, chairman and CEO of the PHLX.
David M. Scheckel, the chief executive officer of OES, said the services provided by PRO represent a piece of the overall critical business initiatives executed by OES "to significantly contribute to the Reg NMS readiness of several trading centers and large broker dealers." Mr. Scheckel said PRO-provided services "contribute to the PHLX being compliant with Reg NMS and enable its XLE trading system to compete against other exchanges, market centers and ECNs." He said that OES is continuing to work with the PHLX to improve the technology used by PRO "and to assist in keeping the PHLX on the cutting edge of exchange innovation." The PHLX, OES said, provided assistance in establishing PRO as a NASD-registered broker-dealer and exchange facility.