International Securities Exchange Reports Business Activity For December And Full Year 2013

ISE and ISE Gemini™ combined represented 18.3% of equity options market share, excluding dividend trades, for the month of December.
ISE was the second largest equity options exchange for the full year 2013.
Since launch on August 5, 2013, ISE Gemini reported an equity options market share of 2.2%, excluding dividend trades, with an ADV of 308,000 contracts.
Dividend trades made up 2.7% of industry volume in 2013.

The International Securities Exchange (ISE) today reported a combined average daily volume (ADV) of 2.4 million contracts in December 2013 for its two exchanges, ISE and ISE Gemini. This represents 18.3% of U.S. equity options market share.

Average daily volume for full year 2013 for ISE was 2.4 million contracts, making it the second largest U.S. equity options exchange with market share of 16.6%*. Since launching on August 5, 2013, ISE Gemini reported an ADV of 308,000, with steady month-over-month increases in ADV and market share. Total combined volume for both exchanges was 638.8 million contracts for the full year.

Business highlights for the full year 2013 include:

Options
- ISE launched Mini Options on March 18, 2013. Mini Options represent a deliverable of 10 shares of an underlying security, whereas standard contracts represent a deliverable of 100 shares.
- On October 15, ISE surpassed 20 million contracts traded with Implied Order (IO) functionality. Implied Orders significantly enhanced ISE's industry-leading complex order book by enabling greater interaction of multi-legged orders with the regular order book. In 2013, Implied Order functionality accounted for 6.7% of all non-crossing, multi-legged contract volume executed on ISE.
- In August, ISE successfully launched its second options exchange, ISE Gemini. Highlights of the ISE Gemini rollout include:
  - August 26, 2013: Became fastest new exchange to surpass two percent market share.
  - October 23, 2013: Surpassed 500k contracts traded and three percent market share in a single trading day.
  - November 19, 2013: Surpassed 20 million total contracts traded.
  - November 25, 2013: Fourth product rollout completed with 1,000 total products listed.
  - As of year end, ISE Gemini has over 75 member firms and market share of 2.2%, excluding dividend trades.
ISE ETF Ventures
- ISE strengthened focus on the ETF and index development area with the introduction of the ISE ETF Ventures brand. The new name reflects the group's evolving focus and expanded capabilities in the ETF area.
- ISE ETF Ventures grew its network through several new partnerships in 2013:
  - Licensed the ISE Water Index (ticker: HHO) to KSM, the largest ETF issuer in Israel, for the KSM Water fund (KSMDJWA:IT).
  - Partnered with YieldShares to develop and launch the ISE High Income IndexTM as the basis for the Yield Shares High Income ETF (NYSEArca: YYY).
  - Partnered with BlueStar Indexes to develop a family of indexes and use them as a basis for exchange traded products (ETPs). The BlueStar Israel Global Index (ticker: BLS) was the first index developed through the partnership and serves as the basis for the Market Vectors® Israel ETF (NYSEArca: ISRA®).
  - Partnered with SecuredGrowth Quantitative Research, Inc. (SGQR) to develop and promote indexes that combine the performance of popular ETPs to enhance the return of ay benchmark index or portfolio in a fully transparent, low-risk and liquid manner.
  - Assets under management tied to ISE indexes exceeded $1.3 billion.

Industry Awards
- ISE received the "Most Innovative Exchange Technology" award at the Wall Street Letter 2013 Institutional Trading Awards. Winners were determined by a panel of independent judges and based on the level of innovation and client satisfaction demonstrated by the nominees.
- ISE received the award for "Most Proactive Exchange for ETF Options/Derivatives" at the 9th Annual Global ETF Awards®.
- ISE won "Best Risk Management Initiative" at the 2013 American Financial Technology Awards, hosted by Waters Technology. Winners were determined by a panel of independent industry judges and Waters editorial staff.
- The ISE Water Index (HHO) was recognized by Morgan Stanley Smith Barney's Global Investment Committee as one of its top investment ideas for 2013.

Detailed volume statistics are found in the tables below:

ISE Total Options Volume (Equity, ETF, Index and FX Options - 000s)

	Current Month			Year-to-Date
(000s)	Dec. 2013	Dec. 2012	% Change	Dec. 2013	Dec. 2012	% Change
ISE ADV	1,981.9	2,415.0	-17.9%	2,407.8	2,527.3	-4.7%
ISE Total Volume	41,620.9	48,299.0	-13.8%	606,765.2	631,827.8	-4.0%

ISE Gemini Options Volume (Equity, ETF, and Index - Total)

	Month-to-Month Comparison
(Total)	Dec. 2013	Nov. 2013	% Change
ISE Gemini ADV	435,999	406,579	7.2%
ISE Gemini Total	9,155,974	8,131,576	12.6%

ISE Equity and ETF Options Volume Statistics (000s)

	Current Month			Year-to-Date
(000s)	Dec. 2013	Dec. 2012	% Change	Dec. 2013	Dec. 2012	% Change
ISE ADV	1,978.0	2,391.4	-17.3%	2,391.0	2,505.2	-4.6%
ISE Total Volume	41,538.0	47,828.1	-13.2%	602,528.9	626,290.0	-3.8%
Market Share*	15.0%	18.6%	(3.6) pts	16.6%	18.1%	(1.5) pts

ISE Gemini Equity and ETF Options Volume Statistics (Total)

	Month-to-Month Comparison
(Total)	Dec. 2013	Nov. 2013	% Change
ISE Gemini ADV	435,723	406,309	7.2%
ISE Gemini Total	9,150,175	8,126,176	12.6%
Market Share*	3.3%	2.9%	0.4 pts

*ISE does not include dividend trade volume in market share statistics. ISE's market share statistics continue to be negatively impacted by dividend trade strategies that are permitted based on a non-economic rationale, and inflate and distort trading volume and market share when transacted. Exclusion of dividend trades from total industry volume data presents a more relevant measure of the relative trends in our business. For ISE's whitepaper on dividend trades and their impact on the options industry, please visit www.ise.com/dividendtrades.

Dividend Trade Impact on Industry Market Share**

December 2013
(000s) Equity Options Volume Excluding Dividend Trades Dividend Trade Volume Total Reported Equity Options Volume True Market Share Market Share With Dividend Trades Market Share Difference Dividend Trades as % of Equity Options Volume

CBOE 56,388.1 0.0    56,388.1 20.3% 19.4% 0.9 pts 0.0%

PHLX 41,659.6 12,431.6    54,091.2 15.0% 18.7% (3.6) pts 23.0%

ISE 41,538.0 0.0    41,538.0 15.0% 14.3% 0.7 pts 0.0%

AMEX 40,501.7 0.0    40,501.7 14.6% 14.0% 0.6 pts 0.0%

ARCA 30,406.9 0.0    30,406.9 11.0% 10.5% 0.5 pts 0.0%

NSDQ 29,032.2 0.0    29,032.2 10.5% 10.0% 0.5 pts 0.0%

ISE Gemini 9,150.2 0.0      9,150.2 3.3% 3.2% 0.1 pts 0.0%

MIAX 8,126.9 0.0      8,126.9 2.9% 2.8% 0.1 pts 0.0%

BATS 7,310.6 0.0      7,310.6 2.6% 2.5% 0.1 pts 0.0%

BOX 5,876.1 0.0      5,876.1 2.1% 2.0% 0.1 pts 0.0%

C2 5,708.9 0.0      5,708.9 2.1% 2.0% 0.1 pts 0.0%

BXOptions 1,864.5 0.0      1,864.5 0.7% 0.6% 0.1 pts 0.0%

**This calculation is based on in-the-money call options with a premium of $0.50 or more, and with trades greater than 1,000 contracts. Only trades with the closest expiration are considered. Exchanges without fee caps are excluded. This dividend trade volume information is presented for informational purposes only. It is provided on an "as is" basis, without warranty of any kind. ISE does not guarantee its accuracy or completeness, and ISE accepts no responsibility for any errors or omissions in, or the consequence of relying or acting upon, this information.