ISE Second Market Experiences Rapid Growth in First Month of Trading

  
    
  
  
    
      The International Securities Exchange (NYSE: ISE) said today that 
      average daily trading volume in its Second Market for options has grown 
      to approximately 35,000 contracts since its launch on October 16, 2006. 
      ISE introduced the Second Market to create tight markets and additional 
      liquidity for options classes that have typically experienced lower 
      trading volumes.
    
    
      As a result of increased competition, Second Market symbols currently 
      trade an aggregate of 55% more volume across all exchanges than in the 
      three months prior to ISE listing these names. This volume growth 
      reinforces ISE’s belief that enhanced 
      competition among exchanges improves market quality, which leads to 
      greater trading interest. In the past, similar volume increases also 
      occurred in equity, ETF, and certain index options when greater 
      competition was introduced for these products.
    
    
      David Krell, ISE’s President and Chief 
      Executive Officer, noted, “We are very pleased 
      with the results of the first month of trading in ISE’s 
      Second Market. As we anticipated, overall market quality has improved 
      and volumes have grown as a result of greater competition in these 
      listings. We expect this trend to continue as more names are added to 
      the Second Market in the coming weeks.”
    
    
      Currently, 260 symbols are traded in the Second Market. ISE plans 
      additional listings and expects to include approximately 800 options 
      classes in the Second Market by the end of January 2007. The Second 
      Market offers separate quoting rules and access standards from ISE’s 
      primary market to provide greater flexibility for competitive market 
      making. Citadel Derivatives Group LLC, Merrill Lynch Professional 
      Clearing Corporation, Morgan Stanley & Co. Incorporated, SLK-Hull 
      Derivatives LLC, Timber Hill LLC, and UBS Securities LLC act as Primary 
      Market Makers (PMMs) in the Second Market. Additionally, ten firms 
      currently participate as Competitive Market Makers (CMMs) in these 
      listings.
    
    
      ISE Background
    
    
      International Securities Exchange Holdings, Inc. (NYSE: ISE), through 
      its subsidiaries, operates a family of innovative securities markets. 
      ISE is founded on the principle that technology and competition create 
      better, more efficient markets for investors and consists of an options 
      exchange, a stock exchange and an alternative markets platform. ISE 
      continually enhances its trading systems and develops new products to 
      provide investors with the best marketplace and investment tools to 
      trade smarter.
    
    
      ISE developed a unique market structure for advanced screen-based 
      trading systems and in May 2000 launched the first fully-electronic US 
      options exchange. Currently, ISE operates the largest U.S. equity 
      options exchange and is among the leading options exchanges in the 
      world. ISE offers index options, including a portfolio of proprietary 
      index products, and enhanced market data products for sophisticated 
      investors. ISE FX Options™ are slated to 
      launch in 2007.
    
    
      ISE Stock Exchange, launched in September 2006 with strategic partners, 
      includes an innovative MidPoint Match™ 
      platform which offers investors continuous price improvement. It is 
      expected that MidPoint Match will be integrated with a fully-displayed 
      Best Bid Offer market in the fourth quarter of 2006.
    
    
      ISE’s alternative markets business currently 
      consists of an events market trading platform known as Longitude. 
      Longitude’s patented and proprietary 
      technology provides a unique parimutuel structure for derivatives 
      auctions which results in greater trading and pricing flexibility for 
      market participants.
    
    
      For more information about ISE and its options exchange, visit www.iseoptions.com 
      and for more information about ISE Stock Exchange, visit www.isestock.com. 
      Additionally, to learn more about ISE alternative markets technology, 
      visit www.longitude.com.
    
    
      Forward Looking Statements
    
    
      Certain matters discussed in this press release are “forward 
      looking statements” intended to qualify for 
      the safe harbor from liability established by the Private Securities 
      Litigation Reform Act of 1995. These statements relate to future events 
      or our future financial performance, and involve known and unknown 
      risks, uncertainties and other factors that may cause our actual 
      results, levels of activity, performance or achievements, to be 
      materially different from those contemplated by the forward looking 
      statements. We undertake no ongoing obligation, other than that imposed 
      by law, to update these statements. Factors that could affect our 
      results, levels of activity, performance or achievements and cause them 
      to materially differ from those contained in the forward looking 
      statements can be found in our filings with the Securities and Exchange 
      Commission, including our annual report on Form 10-K, current reports on 
      Form 8-K and quarterly reports on Form 10-Q, as amended.
    
  
The International Securities Exchange (NYSE: ISE) said today that
average daily trading volume in its Second Market for options has
grown to approximately 35,000 contracts since its launch on October
16, 2006. ISE introduced the Second Market to create tight markets and
additional liquidity for options classes that have typically
experienced lower trading volumes.

   As a result of increased competition, Second Market symbols
currently trade an aggregate of 55% more volume across all exchanges
than in the three months prior to ISE listing these names. This volume
growth reinforces ISE's belief that enhanced competition among
exchanges improves market quality, which leads to greater trading
interest. In the past, similar volume increases also occurred in
equity, ETF, and certain index options when greater competition was
introduced for these products.

   David Krell, ISE's President and Chief Executive Officer, noted,
"We are very pleased with the results of the first month of trading in
ISE's Second Market. As we anticipated, overall market quality has
improved and volumes have grown as a result of greater competition in
these listings. We expect this trend to continue as more names are
added to the Second Market in the coming weeks."

   Currently, 260 symbols are traded in the Second Market. ISE plans
additional listings and expects to include approximately 800 options
classes in the Second Market by the end of January 2007. The Second
Market offers separate quoting rules and access standards from ISE's
primary market to provide greater flexibility for competitive market
making. Citadel Derivatives Group LLC, Merrill Lynch Professional
Clearing Corporation, Morgan Stanley & Co. Incorporated, SLK-Hull
Derivatives LLC, Timber Hill LLC, and UBS Securities LLC act as
Primary Market Makers (PMMs) in the Second Market. Additionally, ten
firms currently participate as Competitive Market Makers (CMMs) in
these listings.

   ISE Background

   International Securities Exchange Holdings, Inc. (NYSE: ISE),
through its subsidiaries, operates a family of innovative securities
markets. ISE is founded on the principle that technology and
competition create better, more efficient markets for investors and
consists of an options exchange, a stock exchange and an alternative
markets platform. ISE continually enhances its trading systems and
develops new products to provide investors with the best marketplace
and investment tools to trade smarter.

   ISE developed a unique market structure for advanced screen-based
trading systems and in May 2000 launched the first fully-electronic US
options exchange. Currently, ISE operates the largest U.S. equity
options exchange and is among the leading options exchanges in the
world. ISE offers index options, including a portfolio of proprietary
index products, and enhanced market data products for sophisticated
investors. ISE FX Options(TM) are slated to launch in 2007.

   ISE Stock Exchange, launched in September 2006 with strategic
partners, includes an innovative MidPoint Match(TM) platform which
offers investors continuous price improvement. It is expected that
MidPoint Match will be integrated with a fully-displayed Best Bid
Offer market in the fourth quarter of 2006.

   ISE's alternative markets business currently consists of an events
market trading platform known as Longitude. Longitude's patented and
proprietary technology provides a unique parimutuel structure for
derivatives auctions which results in greater trading and pricing
flexibility for market participants.

   For more information about ISE and its options exchange, visit
www.iseoptions.com and for more information about ISE Stock Exchange,
visit www.isestock.com. Additionally, to learn more about ISE
alternative markets technology, visit www.longitude.com.

   Forward Looking Statements

   Certain matters discussed in this press release are "forward
looking statements" intended to qualify for the safe harbor from
liability established by the Private Securities Litigation Reform Act
of 1995. These statements relate to future events or our future
financial performance, and involve known and unknown risks,
uncertainties and other factors that may cause our actual results,
levels of activity, performance or achievements, to be materially
different from those contemplated by the forward looking statements.
We undertake no ongoing obligation, other than that imposed by law, to
update these statements. Factors that could affect our results, levels
of activity, performance or achievements and cause them to materially
differ from those contained in the forward looking statements can be
found in our filings with the Securities and Exchange Commission,
including our annual report on Form 10-K, current reports on Form 8-K
and quarterly reports on Form 10-Q, as amended.