.jpg)
The International Securities Exchange (NYSE:ISE) today reported that in October 2007, its options exchange traded a record average daily volume of 3.7 million contracts. The ISE Stock Exchange traded an average daily volume of 62.8 million shares in the same period.
Average daily trading volume for equity and index options contracts increased 43.5% to a record 3.7 million contracts in October as compared to 2.6 million contracts during the same period in 2006. Average daily trading volume in equity options reached a record 3.6 million contracts, an increase of 42.9% over last year, while average daily volume in index options increased 87.7% to 0.1 million contracts. Total equity and index options volume for the month increased 50.1% to 84.5 million contracts from 56.3 million contracts in the same year-ago period.
On a year-to-date basis, average daily trading volume of equity and index options increased 31.3% to 3.1 million contracts traded as compared to 2.4 million contracts traded in the prior year. Total year-to-date equity and index volume through October 2007 increased 31.3% to 651.5 million contracts from 496.1 million contracts in the same period last year.
| Equity and Index Options Volume Statistics | ||||||
| Current Month | Year-to-Date | |||||
| (000s) | Oct-07 | Oct-06 | % Change | Oct-07 | Oct-06 | % Change |
| ISE Average Daily Volume | 3,672.3 | 2,558.6 | 43.5% | 3,102.6 | 2,362.3 | 31.3% |
| ISE Total Volume | 84,463.9 | 56,288.6 | 50.1% | 651,539.3 | 496,079.0 | 31.3% |
| Industry Average Daily Volume | 12,695.4 | 8,697.5 | 46.0% | 11,022.8 | 7,966.8 | 38.4% |
| Market Share | 28.9% | 29.4% | (0.5) pts | 28.2% | 29.7% | (1.5) pts |
| Market Share: Customer | 28.5% | 29.1% | (0.6) pts | 29.0% | 30.1% | (1.1) pts |
| Market Share: Firm | 28.2% | 26.2% | 2.0 pts | 26.4% | 25.8% | 0.6 pts |
| Market Share: Market Maker | 29.5% | 30.8% | (1.3) pts | 28.0% | 30.5% | (2.5) pts |
| Equity Options Volume Statistics | ||||||
| Current Month | Year-to-Date | |||||
| (000s) | Oct-07 | Oct-06 | % Change | Oct-07 | Oct-06 | % Change |
| ISE Average Daily Volume | 3,602.7 | 2,521.5 | 42.9% | 3,042.3 | 2,329.5 | 30.6% |
| ISE Total Volume | 82,862.0 | 55,472.2 | 49.4% | 638,885.9 | 489,196.5 | 30.6% |
| Industry Average Daily Volume | 11,669.5 | 7,943.3 | 46.9% | 9,957.7 | 7,240.9 | 37.5% |
| Market Share | 30.9% | 31.7% | (0.8) pts | 30.6% | 32.2% | (1.6) pts |
| Market Share: Customer | 30.3% | 31.2% | (0.9) pts | 31.4% | 32.4% | (1.0) pts |
| Market Share: Firm | 30.4% | 28.7% | 1.7 pts | 29.1% | 28.6% | 0.5 pts |
| Market Share: Market Maker | 31.5% | 33.3% | (1.8) pts | 30.3% | 33.1% | (2.8) pts |
| Index Options Volume Statistics | ||||||
| Current Month | Year-to-Date | |||||
| (000s) | Oct-07 | Oct-06 | % Change | Oct-07 | Oct-06 | % Change |
| ISE Average Daily Volume | 69.6 | 37.1 | 87.7% | 60.3 | 32.8 | 83.8% |
| ISE Total Volume | 1,601.9 | 816.4 | 96.2% | 12,653.4 | 6,882.5 | 83.8% |
| Industry Average Daily Volume | 1,007.4 | 753.8 | 33.6% | 1,060.1 | 725.4 | 46.1% |
| Market Share | 6.9% | 4.9% | 2.0 pts | 5.7% | 4.5% | 1.2 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 31.2% from 30.9%, an increase of 0.3 market share points.
On a year-to-date basis, our market share would increase to 31.2% from 30.6%, an increase of 0.6 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
Options Exchange
- ISE was the largest U.S. equity options exchange in October.
- On October 2, 2007, OMX announced that it will expand upon its technology partnership with ISE to deliver and maintain the new derivatives trading system for DEX(TM) - Derivatives Canada. DEX is jointly owned by TSX Group Inc. and ISE and is scheduled to begin operations in March 2009.
- On October 10, 2007, ISE launched its Depth of Market Feed, a real-time data feed that provides the aggregated volume of all quotes and orders available at each of the top five price levels for options that trade on ISE. The ISE Depth of Market Feed is designed to improve trading efficiency by providing transparency beyond the Best Bid and Offer (BBO).
- Open interest in ISE FX Options continues to grow and reached 217,295 contracts on October 31, 2007, surpassing open interest of 169,578 contracts at the end of September.
- ISE traded more volume than any other options exchange in 965 of 1,838 issues in its listings.
ISE Stock Exchange
- An average daily volume of 62.8 million shares traded on the ISE Stock Exchange in October.
- Under Regulation NMS, market data revenues are allocated to the individual equities exchanges for their pro-rata share of both trades and quotes by security. The ISE Stock Exchange was the first exchange to file with the SEC to share quote revenues with its members and currently rebates 50% of these revenues to ISE members responsible for generating these markets. The ISE Stock Exchange also rebates 50% of its trade reporting revenues to members.
