Definition of Boston Stock Exchange (BSE)

established in 1834, the BSE is the first American exchange to open its membership to foreign brokers. It is the first U.S. exchange with a foreign linkage-to the Montreal Exchange (1984), and the first with an off-site, backup trading floor. The BSE trades listed equities and, through its facility, the Boston Options Exchange (BOX), began trading equity options in an all-electronic format in February 2004. The BSE competes with other national stock exchanges, with more than 200 members and approximately 50 of its own primary listed companies. In 1994, the exchange introduced the Competing Specialists Initiative (CSI) in an auction market environment. The BSE operates the BEACON automated trading system. In 2001, BEACON Remote was launched, the first all-inclusive remote access trading system offered by a U.S. stock exchange; it allows primary and competing specialists with the exchange to trade from remote sites across the United States. In 1998, the exchange introduced Exchange Traded Funds (ETFs), a hybrid version of mutual funds. In 1999, the exchange moved to a state-of-the-art facility in downtown Boston. In 2002, the exchange began trading NASDAQ-listed stocks, and launched derivatives trading on its facility BOX in 2004. BOX currently trades the top 400 OCC listed options and is averaging more than 7% of the market in which it trades (6% overall). Trading hours are Monday through Friday, 9:30 A.M. to 4 P.M., with a limited crossing network at 5 P.M., matching the New York Stock Exchange's Session No. 1. www.bostonstock.com and www.bostonoptions.com.