Archipelago Holdings Inc. has announced plans for a new options trading platform by early next year.

The firm, which owns and operates the Archipelago Exchange, unveiled the initial plans for the development of a next generation options trading platform today. The new platform, which will replace the PCX Plus trading system, is designed to offer significant improvements in trading system performance, functionality and reliability. The announcement comes on the back of the Archipelago’s completion of its acquisition of the Pacific Exchange.

The new trading system, which is being developed internally, is being created using components and processes currently in use by ArcaEx’s equity trading system and will integrate relevant functionality of the existing PCX Plus system.

“As we develop this new platform, it is critical for us to get feedback from our clients,” said, Matt Gelber, executive managing director of derivative products. “We are focused on having a differentiated and valuable product offering for options traders and the best way to accomplish this is by being responsive to the needs of the marketplace.”

The company plans to file any required rule filings with the SEC in the coming weeks and pending all necessary approvals, expects to begin the transition to the new trading platform in the second quarter of 2006. It is expecting to merger with the NYSE in early 2006 too.

“By creating a new technology platform for options trading, we will be better positioned to implement our vision of a multi-product single platform exchange,” said Jerry Putnam, CEO of Archipelago. “Options are a dynamic product class where we see significant opportunity, and building this new system is evidence of our commitment to, and the opportunities we see in this market.”