SUPERIOR COURT OF PENNSYLVANIA VACATES JUDGEMENT IN DOONER V. THE PHILADELPHIA STOCK EXCHANGE

For more information, contact Barbara Sorid at 215-496-5200 or by e-mail

PHILADELPHIA- October 18, 2007- On Wednesday, October 17, 2007, the Superior Court of Pennsylvania vacated the judgment in William Dooner and Maureen Dooner v. Ralph DiDonato and Philadelphia Stock Exchange.

The case stemmed from an altercation between two traders on the floor of the Exchange in December 2002. A Philadelphia Court of Common Pleas jury previously awarded the plaintiff nearly $2,000,000 for injuries allegedly sustained during the altercation and inexplicably held the Exchange responsible for 50% of the total damages.

In vacating that award, the Superior Court held that the Securities Exchange Act preempts a floor trader's negligence causes of action against a national securities exchange where those causes of action implicate the exchange's statutory authority to govern itself. Because of this federal preemption, the Exchange is entitled to judgment as a matter of law, stating “floor traders who abuse other floor traders are subject to civil liability and/or criminal liability in an appropriate case. Nothing in this opinion precludes an injured floor trader bringing a state tort action against a fellow trader, but not against the exchange."

The Exchange is gratified by the result, particularly because it found the jury’s award to be outrageous and contrary to the weight of the evidence in light of the nature of the injuries alleged. The Exchange will continue to maintain a safe environment for its members to conduct business, consistent with its self-regulatory responsibilities.

The Philadelphia Stock Exchange was founded in 1790. The PHLX trades more than 7,000 stocks, 2,639 equity options, 19 sectors index options, options on all major currencies, and futures through its subsidiary, The Philadelphia Board of Trade (PBOT). For more information about the PHLX and its products, visit www.phlx.com.

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