Record Daily Volume For SFE Options

On April 22, 2005, Sydney Futures Exchange experienced record trading volumes for the Options based on its four major benchmark futures contracts. A total of 41,241 options were traded on both the day and night sessions, exceeding the previous record of 39,084 set on the 10th of June 1998. In addition to the record ‘total’ volume, a new record was also set in the Options over the Three Year Bond Futures with 24,500 options traded, up from 13,945 set on the 14 th January 2004. These represent the first new records for SFE options since electronic trading was introduced in 1999.

“The record levels we’re now experiencing in our option markets,” said Peter Hiom, General Manager, Exchange Business Development, “are a product of both the increased volatility in the underlying interest rate and equity markets over recent months, and a program of initiatives carried out by SFE to facilitate the electronic trading of options.”

These initiatives, designed to improve price discovery, market transparency and to facilitate easier trading access include:

• The introduction of rules allowing the pre-negotiation of trades prior to execution on the market
• The addition of more Market Makers in the Interest Rate and Equity Options
• An increased minimum price increment to ½ tick in SFE SPI 200 Options

“Later this year,” continued Mr Hiom, “we will be introducing an educational program directed at existing and potential options users to improve individual expertise and market awareness of the benefits in using exchange traded options.”