Mondo Visione Worldwide Financial Markets Intelligence

FTSE Mondo Visione Exchanges Index:

ISE Reports Business Activity For July 2011

Date 01/08/2011

  • Dividend trades made up 4.2% of industry volume in July 2011.
  • ISE is the third largest equity options exchange in July with market share of 18.4%, excluding dividend trades.

The International Securities Exchange (ISE) today reported average daily volume of 2.9 million contracts in July 2011. This represents an increase of 13.6% compared to July 2010. Total options volume for the month was 57.3 million contracts. ISE was the third-largest U.S. equity options exchange in July with market share of 18.4%*. Business highlights for the month of July include:

  • On July 6, 2011, ISE announced that First Trust Advisors L.P. launched the First Trust ISE Cloud Computing Index Fund (Ticker: SKYY), based on the ISE Cloud ComputingTM Index (Ticker: CPQ). This new benchmark includes companies that are direct service providers for the "cloud," firms that provide goods and services in support of the cloud computing space, and technology conglomerates whose business model uses or supports cloud computing technology.

  • On July 15, 2011, ISE enhanced its Price Improvement Mechanism (PIM) to accept multi-legged option orders. This feature represents one of the first value-added attributes of the new OptimiseTM technology that will directly benefit options customers.

  • On July 25, 2011, ISE successfully completed the rollout of its new trading system based on Deutsche Börse Group's Optimise trading architecture, concluding ISE's three-month migration to the new system.

  • Aggregate assets under management for the ETFs based on ISE's proprietary indexes was $1.2 billion as of July 29, 2011.

Detailed volume statistics are found in the tables below:

 

Total Options Volume (Equity, ETF, Index and FX Options)

 

Current Month

Year-to-Date

(000s)

Jul-11

Jul-10

% Change

Jul-11

Jul-10

% Change

ISE Average Daily Volume

2,866.3

2,523.1

13.6%

2,998.0

3,162.5

-5.2%

ISE Total Volume

57,326.3

52,985.0

8.2%

434,707.0

458,568.4

-5.2%

 

Equity and ETF Options Volume Statistics

Current Month

Year-to-Date

(000s)

Jul-11

Jul-10

% Change

Jul-11

Jul-10

% Change

ISE Average Daily Volume

2,827.3

2,478.4

14.1%

2,960.0

3,108.5

-4.8%

ISE Total Volume

56,545.1

52,046.6

8.6%

429,202.3

450,727.4

-4.8%

Market Share*

18.4%

20.6%

(2.2 pts)

18.9%

22.4%

(3.5) pts

 

Index Options Volume Statistics

 

Current Month

Year-to-Date

(000s)

Jul-11

Jul-10

% Change

Jul-11

Jul-10

% Change

ISE Average Daily Volume

38.6

43.1

-10.5%

37.5

52.6

-28.7%

ISE Total Volume

771.0

905.0

-14.8%

5,442.1

7,634.0

-28.7%

 

ISE FX Options® Volume Statistics

 

Current Month

Year-to-Date

(000s)

Jul-11

Jul-10

% Change

Jul-11

Jul-10

% Change

ISE Average Daily Volume

0.5

1.6

-68.8%

0.4

1.4

-71.4%

ISE Total Volume

10.1

33.4

-69.8%

62.6

206.9

-69.7%

*ISE does not include dividend trade volume in market share statistics. ISE's market share statistics continue to be negatively impacted by dividend trade strategies that are permitted based on a non-economic rationale, and inflate and distort trading volume and market share when transacted. Exclusion of dividend trades from total industry volume data presents a more relevant measure of the relative trends in our business. For ISE's whitepaper on dividend trades and their impact on the options industry, please visit www.ise.com/dividendtrades.

Dividend Trade Impact on Industry Market Share**

Jul 2011
(000s)

Equity Options Volume Excluding Dividend Trades

Dividend Trade Volume

Total Reported Equity Options Volume

True Market Share

Market Share With Dividend Trades

Market Share Difference

Dividend Trades as % of Equity Options Volume

PHLX

66,771.2

10,394.6

77,165.8

21.7%

24.1%

(2.4 pts)

13.5%

CBOE

60,890.2

147.8

61,038.0

19.8%

19.0%

0.8 pts

0.2%

ISE

56,545.1

0.0

56,545.1

18.4%

17.6%

0.8 pts

0.0%

AMEX

46,168.8

129.1

46,297.9

15.0%

14.4%

0.6 pts

0.3%

ARCA

33,808.3

2,707.8

36,516.1

11.0%

11.4%

(0.4 pts)

7.4%

BATS

14,455.7

0.0

14,455.7

4.7%

4.5%

0.2 pts

0.0%

NSDQ

12,626.3

0.0

12,626.3

4.1%

3.9%

0.2 pts

0.0%

BOX

11,740.4

0.0

11,740.4

3.8%

3.7%

0.1 pts

0.0%

C2

4,402.3

0.0

4,402.3

1.4%

1.4%

0.0 pts

0.0%

**This calculation is based on in-the-money call options with a premium of $0.50 or more, and with trades greater than 1,000 contracts. Only trades with the closest expiration are considered. Exchanges without fee caps are excluded. This dividend trade volume information is presented for informational purposes only. It is provided on an "as is" basis, without warranty of any kind. ISE does not guarantee its accuracy or completeness, and ISE accepts no responsibility for any errors or omissions in, or the consequence of relying or acting upon, this information. 2010 YTD data only is only available from June 2010 onwards.