The International Securities Exchange (NYSE:ISE) today reported that average daily trading volume for equity and index options contracts for August 2007 increased 74.3% to 3.6 million contracts as compared to 2.0 million contracts during the same period in 2006. Average daily trading volume in index options contracts reached a record 0.1 million contracts per day. Total equity and index options volume for the month increased 74.3% to a record 82.1 million contracts from 47.1 million contracts in the same year-ago period.
On a year-to-date basis, average daily trading volume of equity and index options increased 29.8% to 3.0 million contracts traded as compared to 2.3 million contracts traded in the prior year. Total year-to-date equity and index volume through August 2007 increased 29.8% to 509.6 million contracts from 392.5 million contracts in the same period last year.
Equity and Index Options Volume Statistics
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Current Month Year-to-Date
(000s) Aug-07 Aug-06 % Change Aug-07 Aug-06 % Change
-------------------- -------- --------- --------- --------- ---------
ISE Average
Daily
Volume 3,570.4 2,048.1 74.3% 3,033.6 2,336.5 29.8%
ISE Total
Volume 82,119.7 47,105.6 74.3% 509,644.0 392,526.0 29.8%
Industry
Average
Daily
Volume 12,791.8 6,976.1 83.4% 10,829.7 7,873.3 37.5%
Market Share 27.9% 29.4% (1.5) pts 28.0% 29.7% (1.7) pts
-------------------- -------- --------- --------- --------- ---------
Market
Share:
Customer 27.9% 29.2% (1.3) pts 29.1% 30.3% (1.2) pts
Market
Share: Firm 27.7% 25.8% 1.9 pts 26.0% 25.8% 0.2 pts
Market
Share:
Market
Maker 28.0% 30.7% (2.7) pts 27.7% 30.4% (2.7) pts
-------------------- -------- --------- --------- --------- ---------
Equity Options Volume Statistics
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Current Month Year-to-Date
(000s) Aug-07 Aug-06 % Change Aug-07 Aug-06 % Change
-------------------- -------- --------- --------- --------- ---------
ISE Average
Daily
Volume 3,471.5 2,016.8 72.1% 2,975.0 2,304.6 29.1%
ISE Total
Volume 79,845.0 46,387.2 72.1% 499,804.2 387,177.0 29.1%
Industry
Average
Daily
Volume 11,373.9 6,324.7 79.8% 9,760.9 7,152.0 36.5%
Market Share 30.5% 31.9% (1.4) pts 30.5% 32.2% (1.7) pts
-------------------- -------- --------- --------- --------- ---------
Market
Share:
Customer 30.4% 31.4% (1.0) pts 31.6% 32.6% (1.0) pts
Market
Share: Firm 31.1% 28.6% 2.5 pts 28.7% 28.7% 0 pts
Market
Share:
Market
Maker 30.5% 33.4% (2.9) pts 30.1% 33.0% (2.9) pts
-------------------- -------- --------- --------- --------- ---------
Index Options Volume Statistics
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Current Month Year-to-Date
(000s) Aug-07 Aug-06 % Change Aug-07 Aug-06 % Change
---------------------------- ------ -------- ------- ------- --------
ISE Average Daily
Volume 98.9 31.2 216.6% 58.6 31.8 84.0%
ISE Total Volume 2,274.7 718.4 216.6% 9,839.7 5,349.0 84.0%
Industry Average
Daily Volume 1,410.8 651.0 116.7% 1,066.4 720.7 48.0%
Market Share 7.0% 4.8% 2.2 pts 5.5% 4.4% 1.1 pts
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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 August would increase to 30.6% from 30.5%, an increase of 0.1 market share points.
On a year-to-date basis, our market share would increase to 31.2% from 30.5%, an increase of 0.7 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 August.
- On August 16, 2007 ISE set the following daily trading volume records:
- 6,532,403 equity, index and FX options contracts traded on ISE's options exchange, surpassing the previous record of 6,226,821 contracts set on July 27, 2007.
- 243,572 index options contracts traded as compared to the previous record of 212,447 contracts established on August 8, 2007.
- 77,439,600 shares traded on the ISE Stock Exchange, exceeding the previous record of 53,233,000 set on August 9, 2007.
- Open interest in ISE FX Options continues to grow and reached 151,480 contracts on August 31, 2007, surpassing open interest of 103,910 contracts at the end of July.
- ISE traded more volume than any other options exchange in 982 of 1,784 issues in its listings.
