Options Forum: What Demutualizing Means

Steve,

You've recently written about the Philadelphia Stock Exchange (PHLX) demutualizing. Can you explain what that means in terms of the industry and its effect, if any, on trading?

-- J.B.

Nomenclature aside, the Philadelphia Stock Exchange is basically an options exchange, as nearly 80% of its volume now comes in the form of option contract execution. The exchange was established in 1790, making it the first licensed securities exchange in the U.S. But just as its heyday as a leading stock exchange has long since passed, its stature in the options industry has also declined. ...