For Options Exchanges, Multiple Listings Create Collective Obstacle -- Fierce Competition

Tradition dictates that an options exchange will steal a listing from a rival when that rival poaches one of its listings, but there's a sentiment developing that the best offense might be a good defense.

Experts had expected the coming attempt to multiply list grandfathered options, which trade on just a single exchange, to provoke competitors into a listings war. For example, if the American Stock Exchange were to list the Pacific Exchange-traded Microsoft (MSFT Quote) options, the P-Coast would list Intel (INTC Quote), an Amex exclusive.

In 1991, the Securities and Exchange Commission changed the way options listings were allocated from a lottery that gave the rights to one exchange to a system by which all exchanges could list any option. But about 60% of today's listings were grandfathered, protecting their exclusive listings. ...