But, since July, payment for order flow has become institutionalized in the equity options markets.
Equity options are an important cog in the wheel that makes our capital markets run.
Hindery and Hostetter are each investing about $20 million, although Hindery received more equity options than Hostetter.
Many equity options traders appear less worried by the Federal Reserve's announcement than by Washington's looming debt and budget battles.
It is losing market share in its three main product areas: shares; exchange-traded funds; and equity options.
Mr. Averbuch helped found the International Securities Exchange, which developed the first electronic auction market for listed equity options in the United States.
The Philadelphia Exchange had been charging specialists and market makers a $1 fee for each contract traded in the 120 most active equity options classes.
He declined to comment on the products that the LSE plans to offer, but they are likely to include equity options and derivatives linked to various indices.
While the International Securities Exchange has the largest volume in equity options, the Chicago Board Options Exchange has the largest volume over all if index options are included.
The Nasdaq Stock Market confirmed yesterday that it would acquire the Philadelphia Stock Exchange for $652 million to expand its presence in the fast-growing equity options business.
To do that, the new NYSE Group is likely to start trading more than just stocks, given Archipelago's expertise in trading equity options.
