CHICAGO, November 12, 2004 – Archipelago Holdings, Inc. (PCX: AX) today announced its October 2004 market transaction volume data for the Archipelago Exchange (“ArcaEx”).  ArcaEx's total trading market share showed continued growth in both AMEX and NYSE- listed equity securities. Specifically, ArcaEx total trading market share grew from 14.7% in October 2003 to 27.0% in October 2004 in AMEX-listed stocks, and from 1.2% in October 2003 to 2.3% in October 2004 in NYSE- listed stocks.  ArcaEx's ETF total monthly share volume also showed continued growth with 1,659.0 (millions of shares) having traded in October 2004 compared to 759.1 (millions of shares) traded in October 2003, resulting in a 118.2% gain.

 ArcaEx's total Nasdaq-listed equity security trading market share was down slightly from 26.4% in October 2003 to 25.1% in October 2004. ArcaEx believes this decrease was largely attributable to an overall increase in market trading volume in stocks priced under $5 which are traded in sub-penny increments on other market places.     

 


  


  
 

  

  


  
October

  
 2003

  

  


  
September 2004 

  

  


  
October 

  
2004

  

 

 


  


  
Total

  monthly volume of Nasdaq-listed equity securities (millions of shares) 

  

  


  
42,022.6

  

  


  
31,725.0

  

  


  
36,697.4

  

 

 


  


  
ArcaEx monthly volume of

  Nasdaq-listed  equity securities (millions

  of shares) (1)

  

  


  
11,104.6

  

  


  
8,271.7

  

  


  
9,198.3

  

 

 


  


  
ArcaEx share of total

  monthly volume of Nasdaq-listed  equity securities (%)(2)

  

  


  
26.4%

  

  


  
26.1%

  

  


  
25.1%

  

 

 


  


  
Total  monthly volume of

  NYSE-listed equity securities (millions

  of shares) 

  

  


  
41,238.6

  

  


  
34,459.9

  

  


  
40,286.5

  

 

 


  


  
ArcaEx monthly volume of

  NYSE-listed equity securities (millions

  of shares)(1)

  

  


  
481.0

  

  


  
687.6

  

  


  
933.5

  

 

 


  


  
ArcaEx share of total

  monthly volume of NYSE-listed  equity securities (%)(2)

  

  


  
1.2%

  

  


  
2.0%

  

  


  
2.3%

  

 

 


  


  
Total  monthly volume of

  AMEX-listed  equity securities (millions

  of shares)

  

  


  
5,877.5

  

  


  
5,589.3

  

  


  
6,629.2

  

 

 


  


  
ArcaEx monthly volume of

  AMEX-listed equity  securities (millions

  of shares) (1)

  

  


  
866.6

  

  


  
1,512.8

  

  


  
1,790.7

  

 

 


  


  
 

  
 

  
ArcaEx share of total

  monthly volume of AMEX-listed equity securities (%)(2)

  

  


  
 

  
 

  
 

  
14.7%

  

  


  
 

  
 

  
 

  
27.1%

  

  


  
 

  
 

  
 

  
27.0%

  

 

 


  


  
ArcaEx ETF total monthly

  share volume (millions of shares)

  

  


  
759.1

  

  


  
1,408.5

  

  


  
1,659.0

  

 

 


  


  
ArcaEx monthly customer

  order volume matched internally (%)(3)

  

  


  
 

  
83.2%

  

  


  
 

  
87.2%

  

  


  
 

  
87.0%

  

 

 


  


  
ArcaEx monthly customer

  order volume routed out  (%)(3)

  

  


  
16.8%

  

  


  
12.8%

  

  


  
13.0%

  

 

 


  


  
Number of trading days

  in period

  

  


  
23

  

  


  
21

  

  


  
21

  

 

 


  


  
 

  

  
 

 

 


  


  
 

  
 

  
ArcaEx Most Active October 2004

  

  
 

 

 


  


  
Symbol

  

  


  
Share Volume

  

  


  
Market Share

  

  
 

 

 


  


  
Nasdaq-100

  Index®                     (QQQ)

  

  


  
755,139,597

  

  


  
33.4%

  

  
 

 

 


  


  
Intel®

  (INTC)

  

  


  
432,441,132

  

  


  
28.4%

  

  
 

 

 


  


  
Microsoft®

  (MSFT)

  

  


  
350,597,157

  

  


  
26.9%

  

  
 

 

 


  


  
Sirius Satellite

  Radio                     (SIRI)

  

  


  
295,092,841

  

  


  
16.1%

  

  
 

 

 


  


  
Semiconductor Holdrs (SM)            (SMH)

  

  


  
292,379,600

  

  


  
50.6%

  

  
 

 

 


  


  
SPDR®                                          (SPY)

  

  


  
271,213,736

  

  


  
25.9%

  

  
 

 

 


  


  
Cisco Systems®                          (CSCO)

  

  


  
249,008,701

  

  


  
24.7%

  

  
 

 

 


  


  
Oracle®

     (ORCL)

  

  


  
218,897,283

  

  


  
25.6%

  

  
 

 

 


  


  
Sun® Microsystems                  (SUNW)

  

  


  
203,245,746

  

  


  
26.9%

  

  
 

 

 


  


  
Applied Materials®

           (AMAT)

  

  


  
196,863,094

  

  


  
            26.6%

  

  
 

 

 


  


  


  


  


  


  


  


 

Additional information on ArcaEx daily, weekly and monthly trading transaction volumes is publicly available in real time through the ArcaVision website accessible via ww.archipelago.com.  Additional data and enhanced functionality can be obtained through a free subscription to ArcaVision. Investors and ArcaEx clients can subscribe to ArcaVision at www.arca-vision.com.

For purposes of calculating monthly transaction volume on ArcaEx, we include all shares that are “handled” on ArcaEx for the month.  Handled shares include both shares that are bought and sold during the month within our internal liquidity pool and shares that are routed to external market centers for execution.

(2)  ArcaEx monthly market share is calculated based on the number of shares handled on the ArcaEx system during the month as a percentage of total monthly volume. Total monthly volume is based on the number of shares of equity securities traded during the month on Nasdaq, AMEX or the NYSE, including if applicable exchange-traded funds, in each case as reported to the consolidated tape.  The “consolidated tape” is the system that continuously provides the last sale price and volume of securities transactions in listed securities to the public.

(3)  In computing the percentage of monthly customer order volume matched internally and the monthly percentage of customer order volume routed out, we calculate the percentage based on the volume of individual customer orders, not the volume of matched trades (i.e., only counting one side of a matched transaction). For example, we calculate two customer orders matched internally on our system as two customer orders matched internally, and we include the volume of both the buy order and the sell order in computing our percentages of monthly customer order volume matched internally and routed out. We calculate one customer order routed to an external market center (which will be matched with an order at that other market center) as one outbound trade or one customer order. We calculate one customer order routed to us from an external market center and matched with an order on our system as one inbound trade or one customer order.

About Archipelago Holdings

Archipelago Holdings (PCX: AX) operates The Archipelago Exchange® (ArcaEx®) the first totally open all- electronic stock exchange in the United States to trade Nasdaq-listed equity securities and exchange listed equity securities, including those listed on the New York Stock Exchange®, American Stock Exchange®, and Pacific Exchange®.  In addition to offering core execution services, ArcaEx provides corporate clients with listing services and innovative data products.  In 2004, Archipelago launched ArcaVision to provide corporate and trading clients with more transparent market data, analytical tools and access to market-wide and ArcaEx specific trading information.  Archipelago Holdings completed its initial public offering in August 2004. For more information please visit www.archipelago.com.

ArcaEx's, past transaction performance is not necessarily indicative of its future results. Periodically, ArcaEX's transaction performance will experience fluctuations due to unforeseen factors effecting trading activity, including seasonality, general economic, political and market conditions, unforeseen market closures or other disruptions in trading.  A description of the factors that may influence ArcaEx's volume of securities transactions are identified in Archipelago's Prospectus, dated August 12, 2004.

Certain statements in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on Archipelago's current expectations and involve risks and uncertainties that could cause Archipelago's actual results to differ materially from those set forth in the statements. There can be no assurance that such expectations will prove to be correct. Factors that could cause Archipelago's results to differ materially from current expectations include: general economic and business conditions, industry trends, competitive conditions, regulatory developments as well as other risks or factors identified in Archipelago's Prospectus, dated August 12, 2004, and form 10-Q dated November 9, 2004, each of which are filed with the Securities and Exchange Commission, and available on Archipelago's website:  www.archipelago.com.

Archipelago Contacts

Margaret Nagle- Press
312-442-7083

Patrick Murphy – Investor Relations
312-442-7005