2004 Mid-Year Highlights
- Amex lists 50 new companies in the first half of 2004, surpassing the number of new listings on the New York Stock Exchange and the Nasdaq Small Cap Market.
- Exchange traded fund listings increase to 138 with the launch of 14 new VIPERs from Vanguard and the iShares S&P 1500 Index Fund.
- Assets invested in Amex-listed exchange traded funds grow to $181 billion, up 50% compared to June 30, 2003.
- Amex lists ING Clarion Global Real Estate Income Fund, the largest closed-end real estate fund in the U.S., which raised $1.35 billion in its initial public offering.
- Amex enhances its automation with the launch of Amex New Trading Environment (ANTE), its new electronic options trading platform.
Equities, Closed-end Funds & Structured Products
The American Stock Exchange ended the first half of 2004 with 50 new company listings, a 61% increase over the first half of 2003. In addition, consolidated average daily volume of the new listings was 12% higher and the average market capitalization of new listings was 70% higher in the first half of 2004 than in 2003.
The American Stock Exchange Composite Index (XAX) finished the first half of 2004 at 1249.82, a 29% increase over the same time last year. The XAX was up 36% over the past three years and up 57% over the past five years, outperforming the Nasdaq Composite Index, the New York Stock Exchange Composite Index, the Russell 2000 Index, the Standard & Poor's 500 Index and the Wilshire 5000 Index during the same periods.
The Amex continues its growth in closed-end fund listings, adding nine new closed-end funds in the first half of 2004, compared to eight in the first half of last year. In February, the Amex listed ING Clarion Global Real Estate Income Fund, the largest closed-end real estate fund in the U.S. ING Clarion Global Real Estate Income Fund, which is the second ING fund to be listed on the Amex, raised $1.35 billion in its IPO. In addition to ING, Amex earned significant repeat business as five issuers, BlackRock, Neuberger Berman, First Trust Advisors, Evergreen Investments and RMR Advisors, returned to list new funds.
The Amex also welcomed two new issuers: ALPS Mutual Funds Services, Inc., and Gabelli Funds. ALPS Mutual Funds Services, Inc., which the Amex has a longstanding relationship in the ETF marketplace, sponsored Reaves Utility Income Fund, its first closed-end fund, while Gabelli Funds listed Gabelli Global Utility & Income Trust.
The Amex continues to be the recognized leader in structured products and experienced additional growth within its capital markets group. There were 61 new products listed in the first half of 2004, a 20% increase from the same time frame for 2003. The Amex traded 323 structured products at June 30, 2004.
"The first half of 2004 was an exceptionally robust one for equities, closed-end funds and structured products at the Amex, and we will continue to build on this momentum," said Peter Quick, Amex president. "The strong performance is a wonderful recognition of the Amex as a premier listing venue that offers companies attractive cost structures and value-added services."
Exchange Traded Funds
The American Stock Exchange continued its dominance as the global leader and pioneer in exchange traded funds, setting several new milestones and launching innovative new ETF products in the first half of the year.
The Amex's collaboration with Vanguard kicked off a strong start to the year for the ETF marketplace, with the launch of 14 new Vanguard VIPERs on the Exchange. The launch of Vanguard's new class of VIPERs brings Vanguard's total number of ETFs to 16, all of which are listed on the Amex. That number will grow with Vanguard's expected launch of six additional VIPERs later this year that will all list on the Amex. With the addition of Vanguard's 14 VIPERs and the iShares S&P 1500 Index Fund, new ETF listings rose to a total of 138, or 92% of the domestic ETF marketplace, at June 30, 2004. Total ETF assets increased to $181 billion, up 50% over the same period a year ago.
Cliff Weber, senior vice president of the ETF Marketplace, said, "We are thrilled to have collaborated with Vanguard to list 14 new VIPERs on the Amex. Vanguard's decision to bring its new products to the Amex is a testament to the quality, strength and liquidity of our marketplace."
The Amex has made significant progress in new product development, continuing to take a leadership role in the ETF marketplace and building on its reputation for product diversity and innovation. The Amex is currently collaborating with several partners to develop the first actively managed ETF.
Options
The Amex options marketplace continued to perform competitively within the industry during the first six months of 2004. Amex equity options market share was 18.5%, compared to 23% during the same period in 2003. Although market share declined, Amex options volume was 830,723 contracts per day versus 717,766 during the first half of 2003, an increase of 16%.
During the second quarter, the Amex enhanced its trading and quoting automation with the launch of Amex New Trading Environment (ANTE), its new electronic options trading platform. The launch of ANTE is a significant milestone for the Amex as the new system combines superior price discovery of an auction market with the increase in speed and efficiency of an electronic trading platform. With plans for an aggressive ANTE rollout schedule, the Amex will trade its 300 most active options on ANTE this year.
"Amid the increasingly competitive environment within the options industry, the Amex has taken a bold step to remain aggressive and achieve future growth. We are confident that ANTE will enhance the outstanding liquidity on our floor while providing our customers with tighter markets and the speed and efficiency of electronic trading," said Michael T. Bickford, senior vice president of Options.
Members Approve Transfer of Control of Amex to The Amex Membership Corporation
In March, The Amex Membership Corporation announced that members overwhelmingly approved the transaction to transfer control of the Amex from NASD to The Amex Membership Corporation. Amex Seat Owner approval of the transaction was a very important step in advancing the strategic direction of the Exchange and sets the stage for the Exchange to better manage the challenges and opportunities to compete more aggressively in the marketplace. Closing of the transaction is pending approval by the Securities and Exchange Commission.
