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The International Securities Exchange (ISE) today reported that in January 2008, its options exchange traded a record average daily volume of 4.8 million contracts. The ISE Stock Exchange traded a record average daily volume of 90.7 million shares in the same period.
Average daily trading volume for equity and index options contracts increased 73.5% to a record 4.8 million contracts in January as compared to 2.8 million contracts during the same period in 2007. Total equity and index options volume for the month increased 82.2% to 101.6 million contracts from 55.8 million contracts in the same year-ago period.
| Equity and Index Options Volume Statistics | |||
| (000s) | Jan-08 | Jan-07 | % Change |
| ISE Average Daily Volume | 4,837.6 | 2,787.9 | 73.5% |
| ISE Total Volume | 101,589.0 | 55,758.9 | 82.2% |
| Industry Average Daily Volume | 17,007.8 | 9,878.9 | 72.2% |
| Market Share | 28.4% | 28.2% | 0.2 pts |
| Market Share: Customer | 30.4% | 29.8% | 0.6 pts |
| Market Share: Firm | 28.9% | 23.7% | 5.2 pts |
| Market Share: Market Maker | 26.8% | 28.5% | (1.7) pts |
| Equity Options Volume Statistics | |||
| (000s) | Jan-08 | Jan-07 | % Change |
| ISE Average Daily Volume | 4,750.8 | 2,749.7 | 72.8% |
| ISE Total Volume | 99,766.7 | 54,994.2 | 81.4% |
| Industry Average Daily Volume | 15,666.9 | 9,100.2 | 72.2% |
| Market Share | 30.3% | 30.2% | 0.1 pts |
| Market Share: Customer | 32.4% | 31.9% | 0.5 pts |
| Market Share: Firm | 31.2% | 25.4% | 5.8 pts |
| Market Share: Market Maker | 28.5% | 30.5% | (2.0) pts |
| Index Options Volume Statistics | |||
| (000s) | Jan-08 | Jan-07 | % Change |
| ISE Average Daily Volume | 86.8 | 38.2 | 126.9% |
| ISE Total Volume | 1,822.3 | 764.7 | 138.3% |
| Industry Average Daily Volume | 1,308.6 | 777.7 | 68.3% |
| Market Share | 6.6% | 4.9% | 1.7 pts |
ISE's market share statistics continue to be negatively impacted by trading strategies that are permitted based on a non-economic rationale. These strategies include dividend trades and synthetic short interest trades. These trades temporarily inflate and distort trading volume and market share when transacted.
Monthly Highlights
Options Exchange
- ISE was the largest U.S. equity options exchange in January.
- On January 2, 2008, ISE began quoting and trading ISE FX OptionsSM in penny increments. Open interest in ISE FX Options reached 405,590 contracts on January 31, 2008 and average daily trading volume was a record 10,505 contracts for the month.
- On January 11, 2008, ISE began trading options on the following FocusShares exchange traded funds (ETFs) that track the performance of four of ISE's unique proprietary indexes: FocusShares ISE-CCM Homeland Security Index Fund (Ticker: MYP), FocusShares ISE SINdex Fund (Ticker: PUF), FocusShares ISE Homebuilders Index Fund (Ticker: SAW) and FocusShares ISE-Revere Wal-Mart Supplier Index Fund (Ticker: WSI). Timber Hill LLC serves as the Primary Market Maker for all four of these new options.
- On January 30, 2008, ISE and Eurex announced that they will jointly develop a new Options Trading System for ISE. Eurex and ISE are currently finalizing plans for the joint development effort and expect the new platform to launch in early 2011. While the new system is under development, ISE's options exchange will continue to operate on the OMX CLICK technology platform.
- ISE traded more volume than any other options exchange in 1,098 of 1,884 issues in its listings.
ISE Stock Exchange
- A record average daily volume of 90.7 million shares traded on the ISE Stock Exchange in January.
- On January 23, 2008, the ISE Stock Exchange set a new daily trading volume record of 162.3 million shares, surpassing the previous record of 145.1 million shares set on January 22, 2008.
- The ISE Stock Exchange offers opportunities for price improvement through its non-displayed liquidity pool, MidPoint MatchSM. Total price improvement in January 2008 was $6.7 million, and price improvement for all displayed market taker orders that interacted with MidPoint Match was greater than $0.01 per share.
ISE Background
The International Securities Exchange operates a family of fully electronic trading platforms, creating efficient markets through innovative technology and market structure. ISE's markets portfolio consists of an options exchange and a stock exchange. As the world's largest equity options trading venue, ISE offers equity, ETF, index, and FX options. The ISE Stock Exchange trades approximately 6,000 products, and is the only fully electronic equities platform that provides the opportunity for continuous price improvement through the interaction of its non-displayed liquidity pool, MidPoint Match, and its displayed stock market. ISE Alternative Markets is scheduled to launch in 2008 and will offer an events market trading platform for derivatives auctions. To complement its markets and enable investors to trade smarter, ISE creates innovative new products including a portfolio of proprietary indexes and enhanced market data products for sophisticated investors.
ISE is a wholly owned subsidiary of Eurex, a leading global derivatives exchange. Eurex itself is jointly owned and operated by Deutsche Börse AG (Ticker: DB1) and SWX Swiss Exchange. Together, Eurex and ISE are the global market leader in individual equity and equity index derivatives.
For more information, please visit www.ise.com.
