The International Securities Exchange (NYSE:ISE) today reported that average daily trading volume for equity and index options contracts for August 2006 increased 32.2% to 2.0 million contracts as compared to 1.5 million contracts during the same period in 2005. Total equity and index options volume for the month increased 32.2% to 47.1 million contracts from 35.6 million contracts in the same year-ago period.
On a year-to-date basis, average daily trading volume of equity and index options increased 40.5% to 2.3 million contracts traded as compared to 1.7 million contracts traded in the prior year. Total equity and index volume through August 2006 increased 40.5% to 392.5 million contracts from 279.4 million contracts in the same period last year.
Equity and Index Options Volume Statistics
| Current Month | Year-to-Date | |||||
| (000s) | Aug-06 | Aug-05 | % Change |
Aug-06 | Aug-05 |
% Change |
| ISE Average Daily Volume | 2,048.1 | 1,548.8 | 32.2% | 2,336.5 | 1,663.0 | 40.5% |
| ISE Total Volume | 47,105.6 | 35,622.1 | 32.2% | 392,526.0 | 279,376.8 | 40.5% |
| Industry Average Daily Volume | 6,975.6 | 5,315.0 | 31.2% | 7,872.8 | 5,541.1 | 42.1% |
| Market Share | 29.4% | 29.1% | 0.3 pts | 29.7% | 30.0% | (0.3) pts |
| ISE Market Share: Customer | 29.2% | 29.1% | 0.1 pts | 30.3% | 30.1% | 0.2 pts |
| ISE Market Share: Firm | 25.8% | 22.1% | 3.7 pts | 25.8% | 21.5% | 4.3 pts |
| ISE Market Share: Market Maker | 30.7% | 31.2% | (0.5) pts | 30.4% | 32.3% | (1.9) pts |
Equity Options Volume Statistics
| Current Month | Year-to-Date | |||||
| (000s) | Aug-06 | Aug-05 | % Change |
Aug-06 | Aug-05 |
% Change |
| ISE Average Daily Volume | 2,016.8 | 1,526.2 | 32.2% | 2,304.6 | 1,648.1 | 39.8% |
| ISE Total Volume | 46,387.2 | 35,101.5 |
32.2% | 387,177.0 | 276,886.0 | 39.8% |
| Industry Average Daily Volume | 6,324.7 | 4,770.9 | 32.6% | 7,152.0 | 5,038.8 | 41.9% |
| Market Share | 31.9% | 32.0% | (0.1) pts | 32.2% | 32.7% | (0.5) pts |
| ISE Market Share: Customer | 31.4% | 31.6% | (0.2) pts | 32.6% | 32.4% | (0.2) pts |
| ISE Market Share: Firm | 28.6% | 25.0% | 3.6 pts | 28.7% | 24.2% | 4.5 pts |
| ISE Market Share: Market Maker | 33.4% | 34.4% | (1.0) pts | 33.0% | 35.2% | (2.2) pts |
Index Options Volume Statistics
| Current Month | Year-to-Date | |||||
| (000s) | Aug-06 | Aug-05 | % Change |
Aug-06 | Aug-05 |
% Change |
| ISE Average Daily Volume | 31.2 | 22.6 | 38.0% | 31.8 | 14.8 | 114.8% |
| ISE Total Volume | 718.4 | 520.6 | 38.0% | 5,349.0 | 2,490.8 | 114.8% |
| Industry Average Daily Volume | 651.0 | 544.1 | 19.6% | 720.7 | 502.3 | 43.5% |
| Market Share | 4.8% | 4.2% | 0.6 pts | 4.4% | 3.0% | 1.4 pts |
Dividend Trade Activity
Our market share statistics continue to be negatively impacted by trading activity related to dividend trades among certain options market makers. These trades temporarily inflate and distort trading volume and market share when transacted. If the volume from the largest dividend trades were excluded from the data, our market share of equity options for the month of August would increase to 32.3% from 31.9%, an increase of 0.4 market share points. On a year-to-date basis, our market share would increase to 33.2% from 32.2%, an increase of 1.0 market share points, if the volume from the largest dividend trades were excluded. The exclusion of dividend trades from total industry volume data presents a more relevant measure of the relative trends in our business.
Monthly Highlights
- ISE was the largest U.S. equity options exchange in August.
- On August 17, 2006 ISE announced the successful results of its first MidPoint Match™ trading simulation. Over 34 million shares changed hands during the one-hour session, which took place after the market's close and was open to all approved users of the ISE Stock Exchange. MidPoint Match is the introductory product of the ISE Stock Exchange LLC, slated for launch in September, pending SEC approval.
- ISE traded more volume than any other options exchange in 687 of 943 issues in its listings.
ISE Background
The International Securities Exchange, LLC (ISE) is an innovative securities market, founded on the principle that technology and competition create better, more efficient markets for investors. ISE is the largest equity options exchange and is among the leading options exchanges in the world. ISE developed a unique market structure for advanced screen-based trading systems and in May 2000 launched the first fully electronic US options exchange. The ISE Stock Exchange LLC will launch in the third quarter of 2006 with strategic partners, offering an innovative MidPoint Match platform, followed by a fully integrated displayed Best Bid Offer (BBO) market in the fourth quarter. ISE is also a majority owner of Longitude LLC, an innovative platform for events markets trading, and offers enhanced market data products for sophisticated investors.
ISE continually enhances its trading systems and develops new products, including index options and market data, to provide investors with the best marketplace and investment tools to trade smarter. For more information about ISE, its options products and its technology, visit www.iseoptions.com and for more information about the ISE Stock Exchange LLC, visit www.isestock.com.
International Securities Exchange, LLC is a wholly-owned subsidiary of International Securities Exchange Holdings, Inc.
Certain matters discussed in this press release are “forward looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements, to be materially different from those contemplated by the forward looking statements. We undertake no ongoing obligation, other than that imposed by law, to update these statements. Factors that could affect our results, levels of activity, performance or achievements and cause them to materially differ from those contained in the forward looking statements can be found in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K, current reports on Form 8-K and quarterly reports on Form 10-Q.
