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 ---------------------------------------------------------------------- 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 ---------------------------------------------------------------------- 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.
On October 5, 2006, ISE began trading options on the KBW Bank Index (Ticker: BKX). Timber Hill LLC serves as the Primary Market Maker.