Microwave atomic clocks have been the de facto standards for precision time
and frequency metrology over the past 50 years, finding widespread use in
basic scientific studies, communications, and navigation. However, with its
higher operating frequency, an atomic clock based on an optical transition
can be much more stable. We demonstrate an all-optical atomic clock refere
nced to the 1.064-petahertz transition of a single trapped Hg-199(+) ion. A
clock-work based on a mode-locked femtosecond laser provides output pulses
at a 1-gigahertz rate that are phase-coherently locked to the optical freq
uency. By comparison to a laser-cooled calcium optical standard, an upper l
imit for the fractional frequency instability of 7 x 10(-15) is measured in
1 second of averaging-a value substantially better than that of the world'
s best microwave atomic clocks.