The Chicago Board Options Exchange (CBOE) today reported that daily volume in August averaged 3.5 million contracts, a nine-percent decline from July 2010 average daily volume (ADV) of 3.9 million contracts and down 21 percent from August 2009 ADV of 4.4 million contracts.
August 2010 trading volume at CBOE totaled 77.0 million contracts, versus 80.9 million contracts in July 2010 and 92.9 million contracts in August 2009.
Year-to-date ADV of 4.6 million contracts through August was up one percent compared with the same period in 2009.
Product-by-product comparisons - Year to date through August, average daily volume in index options and ETF options was up 31 percent and six percent, respectively, and equity option ADV declined ten percent against the first eight months of 2009.
August 2010 ADV for index options rose eight percent against August 2009, while ETF and equity options ADV declined 13 percent and 33 percent, respectively. When compared to average daily volume during July 2010, August 2010 ADV in index options rose one percent, and equity options and ETF options each dropped 12 percent for the same period.
|
Current Month |
Year-To-Date |
|||||||
|
(trades in thousands) |
August 2010 |
August 2009 |
% Chg |
July 2010 |
% Chg |
August 2010 |
August 2009 |
% Chg |
|
Trading Days |
22 |
21 |
21 |
167 |
167 |
|||
|
Total Exchange |
77,033.9 |
92,891.3 |
-17% |
80,923.4 |
-5% |
768,622.0 |
757,978.6 |
1% |
|
Total Exchange ADV |
3,501.5 |
4,423.4 |
-21% |
3,853.5 |
-9% |
4,602.5 |
4,538.8 |
1% |
|
Equity Options |
38,454.4 |
54,718.1 |
-30% |
41,928.3 |
-8% |
389,020.7 |
432,625.3 |
-10% |
|
Equity Options ADV |
1,747.9 |
2,605.6 |
-33% |
1,996.6 |
-12% |
2,329.5 |
2,590.6 |
-10% |
|
Index Options |
19,953.2 |
17,630.1 |
13% |
18,782.5 |
6% |
185,912.2 |
141,821.0 |
31% |
|
Index Options ADV |
907.0 |
839.5 |
8% |
894.4 |
1% |
1,113.2 |
849.2 |
31% |
|
ETF Options |
18,626.2 |
20,543.0 |
-9% |
20,212.6 |
-8% |
193,687.0 |
183,526.9 |
6% |
|
ETF Options ADV |
846.6 |
978.2 |
-13% |
962.5 |
-12% |
1,159.8 |
1,099.0 |
6% |
Expanded August volume information for index and ETF options is available at: www.cboe.com/data/monthlyvolume.aspx.
CBOE Overall Market Share:
CBOE's market share of total U.S. options industry volume in August was 27.2 percent, a 2.0-percentage-point decline from July 2010 and down 5.2 percentage points from August 2009. If the volume from dividend trades was excluded from CBOE's data for August 2010, the Exchange's total market share would increase to 28.7 percent from 27.2 percent, an increase of 1.5 market share points. Exclusion of dividend trades from total industry volume data presents a more relevant measure of the relative trends in the options business.
- CBOE August market share by product:
- Index options - CBOE's market share was 94.1 percent, up 1.3 percentage points from July 2010 and up 2.6 percentage points from August 2009.
- Equity options - CBOE's market share was 22.7 percent, a decrease of 2.6 percentage points from July 2010 and a decline of 6.2 percentage points from August 2009.
- ETF options - CBOE's market share was 20.1 percent, down 2.0 percentage points from July 2010 and a decline of 6.3 percentage points from August 2009.
|
Current Month |
Year-To-Date |
|||||||
|
|
August 2010 |
August 2009 |
% pt. Chg |
July 2010 |
% pt. Chg |
August 2010 |
August 2009 |
% pt. Chg |
|
Total Exchange |
27.2% |
32.4% |
-5.2% |
29.2% |
-2.0% |
30.0% |
31.5% |
-1.5% |
|
Total Exchange (excluding dividend trades) |
28.7% |
33.4% |
-4.7% |
29.6% |
-0.9% |
31.0% |
32.3% |
-1.3% |
|
Equity Options |
22.7% |
28.9% |
-6.2% |
25.3% |
-2.6% |
25.3% |
28.1% |
-2.8% |
|
Index Options |
94.1% |
91.5% |
2.6% |
92.8% |
1.3% |
93.5% |
90.7% |
2.8% |
|
ETF Options |
20.1% |
26.4% |
-6.3% |
22.1% |
-2.0% |
23.5% |
25.8% |
-2.3% |
Average Transaction Fee Per Contract:
The following represents average transaction fee per contract based on a three-month rolling average, reported on a one-month lag. The average transaction fee per contract represents total transaction fees recognized for the period divided by total contracts traded during the period. Average transaction fees per contract can be affected by various factors, including exchange fee rates, volume-based discounts and transaction mix by contract type and product type.
|
(in dollars) |
Three-Month Period Ended |
|||
|
Product: |
July 2010 |
June 2010 |
May 2010 |
April 2010 |
|
Equities |
$0.170 |
$0.162 |
$0.163 |
$0.172 |
|
Indexes |
0.590 |
0.580 |
0.578 |
$0.584 |
|
Exchange Traded Funds |
0.222 |
0.217 |
0.215 |
$0.225 |
|
Total Options Average Transaction Fee Per Contract |
0.288 |
0.277 |
0.274 |
$0.282 |
|
Futures |
1.694 |
1.717 |
1.832 |
$1.879 |
|
Total Average Transaction Fee Per Contract |
$0.293 |
$0.281 |
$0.279 |
$0.286 |
August Highlights:
- On August 31, CBOE Holdings, Inc. (NASDAQ: CBOE) announced plans to launch the C2 Options Exchange, Inc. (C2) in late October, including the anticipated schedule for rollout of products on C2 and trading permit fees. For more information, see http://www.cboe.com/AboutCBOE/PressReleases.aspx.
- On August 4, CBOE Holdings, Inc. announced that its Board of Directors had declared a quarterly cash dividend of $0.10 per share of common stock payable on September 24, 2010 to stockholders of record at the close of business on September 3, 2010.
- At CBOE Futures Exchange (CFE): August 2010 trading volume totaled 291,533 contracts (ADV 13,250 contracts), compared to 105,506 contracts for August 2009 (ADV 5,025 contracts). August marked the eleventh consecutive month in which total CFE volume registered an increase compared with year-over-year trading activity.
- At CBOE Stock Exchange (CBSX): For the first time in its history, CBSX volume exceeded one billion shares traded in a single month. August volume notched an all-time monthly record with 1,077,548,251 shares changing hands, surpassing the previous record of 598.0 million shares traded in July 2010. By comparison, in August 2009, just under 255 million shares were traded. Also during the month, daily trading volume exceeded 100 million for the first time on August 24 (118.8 million shares) eclipsing two other daily records: August 20 (90.8 million shares) and August 12 (63.7 million shares).
- On August 16, CBSX instituted new pricing in 24 of the most-active, lower-priced securities traded on CBSX. The pricing pays "takers" a substantial rebate to remove liquidity when the security's price is above one dollar, creating an incentive for customers to route their orders to CBSX. On August 26, the Exchange announced that 51 more stocks would be added under the new pricing program, effective September 1, 2010. For more information, see https://www.cboe.org/publish/InfoCir/IC10-148.pdf.
- The top five most actively traded index and ETF options at CBOE were the S&P 500 Index (SPX), Standard and Poor's Depositary Receipts (SPY), CBOE Volatility Index (VIX), PowerShares QQQ Trust (QQQQ), and iShares Russell 2000 Index Fund (IWM).
- The top five most actively traded equity options at CBOE were Citigroup (C), Apple (AAPL), Bank of America (BAC), Cisco Systems, Inc. (CSCO), and Potash Corporation of Saskatchewan, Inc. (POT).
Chicago Board Options Exchange (CBOE), the largest U.S. options exchange and creator of listed options, continues to set the bar for options trading through product innovation, trading technology and investor education. CBOE offers equity, index and ETF options, including proprietary products, such as S&P 500 options (SPX), the most active U.S. index option, and options on the CBOE Volatility Index (VIX). Other products engineered by CBOE include equity options, security index options, LEAPS options, FLEX options, and benchmark products such as the CBOE S&P 500 BuyWrite Index (BXM). CBOE's Hybrid Trading System incorporates electronic and open-outcry trading and is powered by CBOEdirect, a proprietary, state-of-the-art electronic platform that also supports the CBOE Futures Exchange (CFE), CBOE Stock Exchange (CBSX) and OneChicago. CBOE is home to the world-renowned Options Institute and www.cboe.com, named “Best of the Web” for options information and education.
CBOE, a wholly-owned subsidiary of CBOE Holdings, Inc. (NASDAQ: CBOE), is regulated by the Securities and Exchange Commission (SEC), with all trades cleared by the AAA-rated Options Clearing Corporation (OCC).
