ISE plans to list options on a variety of full size and mini Russell indexes, including the large-cap Russell 1000® Index and the small-cap Russell 2000® Index. ISE currently trades options on the Russell IWM ETF. Other Russell indexes that have been licensed by ISE include: the broad-market Russell 3000® Index, the Russell Top 200® Index, the Russell Midcap® Index, the Russell 2500T Index and the Russell Small Cap CompletenessT Index. ISE's listing of the Russell indexes will mark the first time that these indicators of the US stock market are available on an all-electronic exchange.
Russell produces a family of 21 US equity indexes. The indexes are market cap-weighted and include only common stocks incorporated in the United States and its territories. All indexes are subsets of the Russell 3000® Index, which represents approximately 98% of the U.S. equity market.
"The Russell family of indexes is a significant addition to ISE's index product portfolio. This extension of the relationship between ISE and Russell demonstrates ISE's commitment to bringing competition to the index options market," said Bruce D. Goldberg, ISE's Senior Vice President, Marketing.
"Our aim is to introduce a growing number of market participants to the benefits of products based on Russell's benchmark stock indexes, which, in turn, will lead to growth in volume and liquidity," said Kelly Haughton, strategic director for Russell indexes. "We are particularly encouraged that ISE has decided to offer electronically traded options products based on Russell's indexes." Haughton added that Russell indexes are now used as benchmarks for more institutional investment products than any other index family; and in addition, more than $2 trillion in assets are now benchmarked against them.
ISE expects to initiate trading on the Russell indexes pending Securities and Exchange Commission (SEC) approval. Subject to filing with the SEC, ISE also plans to charge customer, market maker, and firm orders the standard equity options execution and comparison fees currently charged for market maker and firm orders.
ISE Background
The International Securities Exchange, the world's largest equity options exchange, was founded on the principle that technology fosters and infuses new efficiencies and operational innovations into securities trading. After developing an innovative market structure that integrated auction market principles into an advanced screen-based trading system, ISE launched the first fully electronic US options exchange in May 2000. ISE continually enhances its trading systems to provide investors with the best marketplace to execute their options orders.
For more information about ISE, its products and its technology, visit www.iseoptions.com.
