As Deadline for Reg. NMS' Order Protection Rule Looms, OES Remains 'On or Ahead of Schedule' With Solutions

Business Wire, May 11, 2006

PRINCETON, N.J. -- As the implementation dates for the Order Protection Rule of Reg. NMS draw closer, Order Execution Services Holdings, Inc. (OES) reports that it is "on or ahead of schedule" to help its clients meet many of the considerable requirements of the regulatory mandate from the SEC.

The parent company of Order Execution Services, LLC, and ABS Brokerage Services, LLC -- both leading independent introducing and agency broker-dealers -- OES "is working under the assumption that the SEC will adhere to the schedule and time lines it has set, meaning implementation by at least the end of the SEC's fiscal year on September 30, 2006," said David M. Scheckel, the company's CEO.

"It's clear that Reg. NMS is still a very hot topic in the financial services industry ... as it has been from the time that the SEC first announced the sweeping regulatory changes," said Mr. Scheckel. "From board rooms to water coolers, everyone, it seems, has an opinion and a guess as to whether or not the SEC intends to implement the Order Protection Rule of Reg. NMS ... and when it plans to do so.

"Any change in the way an industry works is disruptive, at least at first," he said. "At OES, we are well aware of the significant challenges created by this new set of rules and regulations. But we also believe that the SEC is very serious about Reg NMS and its current schedules, and that the implementation of Reg. NMS will positively enhance the market's structure."

Mr. Scheckel said that "from the time Reg. NMS was announced, OES immediately began working with market centers and broker-dealers to develop comprehensive technological solutions to meet their needs for the two most important components of Reg. NMS -- trade-through and order protection and fair and open access to market centers. Today, with weeks -- or perhaps a few months -- to go, OES is on or ahead of schedule to help our clients conduct business -- and have our client companies conduct business while satisfying many of their regulatory requirements -- when Reg. NMS takes effect," Mr. Scheckel said.

Impact of Reg. NMS

Michael Barth, OES's senior vice president - Exchanges and Market Centers, said OES believes the most significant change relating to stock execution as a result of Reg. NMS is protection and enforcement of an industry-wide prohibition of trading-through. This rule, he said, protects the top-of-file quote on all market centers, whether it is an exchange, ECN, or other trading facility.

"The practical effect will be to require each market center to fill orders at the very best available price, which, in turn, will require market centers and broker-dealers to be able to quickly access all market centers to get that best possible price," Mr. Barth said. "This is where OES comes in, providing connectivity to all exchanges and the smart-routing capability to reach each exchange and immediately capture the very best price.

"The necessity of firms to achieve the best available price for its customers, will in turn, require those firms to verify to various regulators and the SEC on an ongoing basis that they are compliant with Reg. NMS," he said. "OES has developed a comprehensive recall reporting tool to allow our customers to adhere to the stringent compliance requirements brought on by Reg. NMS."

Timing of Reg. NMS

The debate in the financial services industry as to actually when Reg. NMS is fully implemented, "somewhat misses the point," Mr. Scheckel said.

"Regardless of whether the SEC postpones the start of Reg. NMS or sticks to its original timetable, the fact is that once Reg. NMS does take effect, it will change the trading practices of all market participants," he said. "To that end, OES stands ready to deploy the technology we feel will be the industry standard in smart order-routing capability and trade reporting compliance. OES believes it has the right solutions to respond to the needs of the industry for many of the obligations created by Reg NMS."

About Order Execution Services (OES)

Order Execution Services Holdings, Inc. (OES), through its wholly-owned technology and broker-dealer subsidiaries, provides seamless electronic market connectivity, liquidity access and rapid executions by linking broker-dealers, trading systems, exchanges and market centers. As an innovative securities industry leader, OES specializes in smart-order routing, Reg. NMS compliance tools, sponsored market access, agency execution and private inter-market linkages. OES was formed in 2002 by the management buyout of the Herzog-listed trading division from Merrill Lynch. Closely-held, OES is headquartered in Princeton N.J., with offices in Chicago, Los Angeles, San Francisco, Boston and Philadelphia. For information, visit www.tradeoes.com.

This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. With the exception of historical information contained herein, the matters discussed in this press release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward-looking statement.