Pacific Exchange Seat Surpasses American’s

A seat on the Pacific Exchange is now worth 10% more than a seat on the bigger American Stock Exchange.

A seat on the San Francisco-based regional exchange recently sold for a record $275,000, while a seat on the American Stock Exchange, the third biggest U.S. stock market, cost $250,000, according to spokespeople for the two exchanges.

That’s surprising because seats on exchanges with higher trading volume are usually more expensive. An average of 21.4 million shares changed hands daily on the New York-based American exchange in the first quarter of this year, well above the 13.25 million at the Pacific.

The jump in seat price on the Pacific comes as option trading volume soars. Though volume in equity option contracts at the Pacific also lags that at the American, the West Coast exchange has some top technology options that attract traders including those who focus on Microsoft Corp., Micron Technology Inc. and Compaq Computer Corp. shares. Its future prospects as a leader in options trading are good.

“The Pacific Stock Exchange has such a high concentration of technology stock options, which have had significant volume and volatility over the last couple of years,” said Joseph Dattolo, a senior vice president a Donaldson, Lufkin & Jenrette Inc.’s Pershing unit. “More and more market makers want to start trading those products, so they are going to the Pacific.”

Dattolo sits on the board of the Pacific Exchange, which dropped ‘Stock’ from its name last month to reflect the growing importance of its options business.

The Pacific is the world’s third-largest options exchange, behind the American Stock Exchange and the Chicago Board Options Exchange.

The CBOE recently sold a seat for a record $635,000.