The International Securities Exchange (NYSE:ISE) today reported that average daily trading volume for equity and index options contracts for June 2007 increased 34.9% to 3.0 million contracts as compared to 2.2 million contracts during the same period in 2006. Total equity and index options volume for the month increased 28.7% to 62.6 million contracts from 48.6 million contracts in the same year-ago period.
On a year-to-date basis, average daily trading volume of equity and index options increased 18.6% to 2.8 million contracts traded as compared to 2.4 million contracts traded in the prior year. Total year-to-date equity and index volume through June 2007 increased 17.7% to 352.4 million contracts from 299.5 million contracts in the same period last year.
Equity and Index Options Volume Statistics
Current Month Year-to-Date
(000s) Jun-07 Jun-06 % Change Jun-07 Jun-06 % Change
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ISE Average
Daily
Volume 2,978.8 2,208.5 34.9% 2,842.2 2,396.2 18.6%
ISE Total
Volume 62,555.7 48,587.8 28.7% 352,435.1 299,520.3 17.7%
Industry
Average
Daily
Volume 10,655.8 7,761.3 37.3% 10,155.7 8,061.2 26.0%
Market Share 28.0% 28.5% (0.5) pts 28.0% 29.7% (1.7) pts
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Market
Share:
Customer 29.0% 28.3% 0.7 pts 29.4% 30.6% (1.2) pts
Market
Share: Firm 27.0% 25.3% 1.7 pts 25.2% 25.7% (0.5) pts
Market
Share:
Market
Maker 27.4% 29.7% (2.3) pts 27.7% 30.2% (2.5) pts
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Equity Options Volume Statistics
Current Month Year-to-Date
(000s) Jun-07 Jun-06 % Change Jun-07 Jun-06 % Change
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ISE Average
Daily
Volume 2,918.9 2,170.1 34.5% 2,795.0 2,364.2 18.2%
ISE Total
Volume 61,297.2 47,742.0 28.4% 346,575.2 295,526.5 17.3%
Industry
Average
Daily
Volume 9,597.7 6,876.0 39.6% 9,175.0 7,331.9 25.1%
Market Share 30.4% 31.6% (1.2) pts 30.5% 32.3% (1.8) pts
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Market
Share:
Customer 31.5% 31.1% 0.4 pts 32.0% 32.9% (0.9) pts
Market
Share: Firm 29.8% 28.7% 1.1 pts 27.7% 28.6% (0.9) pts
Market
Share:
Market
Maker 29.7% 32.9% (3.2) pts 30.1% 32.7% (2.6) pts
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Index Options Volume Statistics
Current Month Year-to-Date
(000s) Jun-07 Jun-06 % Change Jun-07 Jun-06 % Change
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ISE Average Daily
Volume 59.9 38.4 55.9% 47.3 32.0 47.9%
ISE Total Volume 1,258.4 845.8 48.8% 5,860.0 3,993.8 46.7%
Industry Average
Daily Volume 1,057.9 884.9 19.6% 980.3 728.8 34.5%
Market Share 5.7% 4.3% 1.4 pts 4.8% 4.4% 0.4 pts
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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 June would increase to 31.4% from 30.4%, an increase of 1.0 market share point.
On a year-to-date basis, our market share would increase to 31.5% from 30.5%, an increase of 1.0 market share point, 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 June.
- On June 25, 2007, ISE launched the ISE Electronic Trading Index(TM), which established a unique benchmark of the marketplaces deemed to be most closely associated with electronic trading in the United States. Additionally, ISE listed cash-settled options based on this new index under the symbol DMA. Timber Hill LLC serves as the Primary Market Maker.
- On June 26, 2007, ISE introduced enhancements to PrecISE Trade(R), its front-end trading application for broker-dealers to access ISE's options market. PrecISE now offers Away Market Routing that enables traders to access the entire options market through one workstation.
- ISE traded more volume than any other options exchange in 954 of 1,761 issues in its listings.
