ISE Reports Monthly Volume For October 2006 - Average Daily Volume Of 2.6 Million Contracts, Up 10.0% From October 2005

The International Securities Exchange (NYSE:ISE) today reported that average daily trading volume for equity and index options contracts for October 2006 increased 10.0% to 2.6 million contracts as compared to 2.3 million contracts during the same period in 2005. Total equity and index options volume for the month increased 15.3% to 56.3 million contracts from 48.8 million contracts in the same year-ago period.

On a year-to-date basis, average daily trading volume of equity and index options increased 34.9% to 2.4 million contracts traded as compared to 1.8 million contracts traded in the prior year. Total equity and index volume through October 2006 increased 34.9% to 496.1 million contracts from 367.8 million contracts in the same period last year.

Equity and Index Options Volume Statistics

                 Current Month                   Year-to-Date
(000s)     Oct-06   Oct-05   % Change     Oct-06    Oct-05   % Change
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ISE
 Average
 Daily
 Volume    2,558.6  2,325.7      10.0%    2,362.3   1,751.6      34.9%
ISE Total
 Volume   56,288.6 48,839.7      15.3%  496,079.0 367,835.6      34.9%
Industry
 Average
 Daily
 Volume    8,697.1  7,370.7      18.0%    7,966.3   5,797.9      37.4%
Market
 Share        29.4%    31.6% (2.2) pts       29.7%     30.2% (0.5) pts
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Market
 Share:
 Customer     29.1%    31.0% (1.9) pts       30.1%     30.3% (0.2) pts
Market
 Share:
 Firm         26.2%    26.7% (0.5) pts       25.8%     22.4%   3.4 pts
Market
 Share:
 Market
 Maker        30.8%    33.3% (2.5) pts       30.5%     32.3% (1.8) pts
----------------------------------------------------------------------

Equity Options Volume Statistics

                Current Month                   Year-to-Date
(000s)     Oct-06   Oct-05  % Change      Oct-06     Oct-05  % Change
----------------------------------------------------------------------
ISE
 Average
 Daily
 Volume   2,521.5  2,299.3       9.7%    2,329.5    1,734.9      34.3%
ISE Total
 Volume  55,472.2 48,284.7      14.9%  489,196.5  364,336.6      34.3%
Industry
 Average
 Daily
 Volume   7,943.3  6,678.0      18.9%    7,240.9    5,270.9      37.4%
Market
 Share       31.7%    34.4% (2.7) pts       32.2%      32.9% (0.7) pts
----------------------------------------------------------------------
Market
 Share:
 Customer    31.2%    33.5% (2.3) pts       32.4%      32.6% (0.2) pts
Market
 Share:
 Firm        28.7%    29.9% (1.2) pts       28.6%      25.1%   3.5 pts
Market
 Share:
 Market
 Maker       33.3%    36.4% (3.1) pts       33.1%      35.2% (2.1) pts
----------------------------------------------------------------------

Index Options Volume Statistics

                       Current Month              Year-to-Date
(000s)            Oct-06  Oct-05 % Change    Oct-06   Oct-05 % Change
----------------------------------------------------------------------
ISE Average Daily
 Volume            37.1    26.4      40.4%    32.8     16.7      96.7%
ISE Total Volume  816.4   555.0      47.1% 6,882.5  3,499.0      96.7%
Industry Average
 Daily Volume     753.8   692.7       8.8%   725.4    527.0      37.6%
Market Share        4.9%    3.8%   1.1 pts     4.5%     3.2%   1.3 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 October would increase to 32.4% from 31.7%, an increase of 0.7 market share points. On a year-to-date basis, our market share would increase to 33.1% from 32.2%, an increase of 0.9 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 October.

On October 10, 2006, ISE launched the ISE-REVERE Natural Gas Index(TM) (Ticker: FUM), a new sector benchmark for this growing industry. Timber Hill LLC serves as the Primary Market Maker

On October 16, 2006, ISE launched trading in its Second Market. When fully rolled-out, the Second Market will list approximately 850 additional equity options, thereby doubling the total number of options classes traded at ISE and giving members access to equity options that represent approximately 99% of industry volume through the ISE platform.

On October 18, 2006, ISE launched ISEE Select(TM), its customized sentiment data offering. Through an intuitive browser application, ISEE Select enables subscribers to identify investor sentiment for individual securities or select industry sectors based on a unique calculation methodology that uses proprietary ISE opening customer trade data.

ISE traded more volume than any other options exchange in 694 of 1101 issues in its listings.