Volume of 326 million contracts, CBOE now Chicago's largest exchange
In the year 2000, CBOE established several new volume records. Total exchange-wide volume soared to 326,359,531 contracts (208,792,580 calls and 117,566,951 puts) in 2000, accounting for a record year at CBOE that represents a 28% increase over the previous record of 254,331,851 contracts traded, set in 1999, and, for the first time, making CBOE Chicago's largest derivatives exchange. Average daily volume rose to 1,295,078 contracts in 2000, compared to 1999's record total of 1,009,253 contracts. Exchange wide open interest reached an all-time year-end high, standing at 53,264,239 contracts, marking a 12% increase at the close of 2000 and breaking the previous record of 47,546,389 contracts which was set at the close of 1999.
278 million stock option contracts traded in 2000
The unprecedented growth in stock option trading continued to lead gains this year at CBOE as stock option volume reached a record high of 278,920,392 contracts (187,906,726 calls and 91,013,666 puts), an increase of 41% over last year's record level of 198,086,825 contracts (138,620,308 calls and 59,466,517 puts). Open interest in stock options stood at a year-end record 49,944,375 contracts -- the equivalent of 4.99 billion shares of stock -- and an increase of 14% over last year's record setting level of 43,836,224 contracts.
In 2000 CBOE listed 447 new option classes, bringing the total number of stock option classes listed at CBOE to 1,858. The ten most active classes in 2000 based on average daily volume were: Cisco Systems, Inc. (CSCO), Microsoft Corp. (MSFT), America Online, Inc. (AOL), Qualcomm, Inc. (QCOM), Dell Computer Corp. (DELL), International Business Machines Corp. (IBM), Yahoo! Inc. (YHOO), Oracle Corp. (ORCL), AT&T Corp. (T) and General Electric Company (GE).
Chairman and CEO William J. Brodsky comments
CBOE Chairman and CEO William J. Brodsky comments: "2000 was a year of tremendous change in the options industry. Yet, in the face of a variety of competitive challenges and an industry that is changing its very structure, CBOE experienced record volume.
"We continued to enhance our electronic trading systems, which have made CBOE one of the world's most technologically advanced trading environments. Additionally, we responded to meet investor demand by introducing more retail-friendly products such as our MNXsm index options, a 1/10th version of our Nasdaq 100 Index® options and our exchange-traded fund, iSharessm S&P 100 Index® Fund. This combination of enhancing the productivity of our trading floor through new systems and providing investors with attractive new products has strengthened CBOE's position as the world's preeminent options marketplace."
Record volume in equity LEAPS® and equity FLEX®
Reflecting continuing customer demand for longer-term option investment strategies, new records were established in CBOE equity LEAPS® products. Trading volume in equity LEAPS surged to a record 18,320,847 contracts (12,913,284 calls and 5,407,563 puts), an increase of 47% over the previous annual high of 12,495,220 contracts set in 1999, while average daily volume was 72,702, compared to the 1999 level of 49,584 contracts. Open interest in equity LEAPS stood at a year-end record 9,220,251 contracts (5,859,826 calls and 3,360,425 puts) at the close of 2000, up 46% from the previous year-end record set at the close of 1999 when open interest stood at 6,331,538 contracts.
CBOE also saw an increase in equity FLEX® options trading. FLEX (FLexible EXchange®) options are customized options products traded at the CBOE which offer the ability to customize key contract terms such as strike prices, exercise dates and style, and contract size. FLEX options are an alternative to the OTC market with the virtual elimination of counterparty risk. Trading volume in equity FLEX options reached 1,211,927 contracts (346,636 calls and 865,291 puts) for the year, a 39% increase over the 1999 total of 871,794 contracts, while average daily volume was 4,809 contracts, versus the 1999 level of 3,460 contracts
CBOE, the world's largest options marketplace and the creator of listed options is regulated by the Securities and Exchange Commission (SEC). For additional information about the CBOE and its products, access the CBOE site on the World Wide Web at http://www.cboe.com.
