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The International Securities Exchange (NYSE:ISE) today reported that average daily trading volume for equity and index options contracts for December 2006 increased 20.1% to 2.2 million contracts as compared to 1.8 million contracts during the same period in 2005. Total equity and index options volume for the month increased 14.4% to 43.2 million contracts from 37.7 million contracts in the same year-ago period.
For the full year 2006, average daily trading volume of equity and index options increased 32.5% to 2.4 million contracts traded as compared to 1.8 million contracts traded in 2005. Total equity and index volume for 2006 increased 31.9% to 592.0 million contracts from 448.7 million contracts in 2005.
Equity and Index Options Volume Statistics
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Current Month Year-to-Date
(000s) Dec-06 Dec-05 % Change Dec-06 Dec-05 % Change
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ISE
Average
Daily
Volume 2,158.4 1,796.7 20.1% 2,358.4 1,780.5 32.5%
ISE Total
Volume 43,168.0 37,730.8 14.4% 591,961.5 448,695.7 31.9%
Industry
Average
Daily
Volume 8,494.1 6,539.7 29.9% 8,078.5 5,968.9 35.3%
Market
Share 25.4% 27.5% (2.1) pts 29.2% 29.8% (0.6) pts
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Market
Share:
Customer 29.4% 30.7% (1.3) pts 30.0% 30.3% (0.3) pts
Market
Share:
Firm 19.6% 18.7% 0.9 pts 25.0% 22.0% 3.0 pts
Market
Share:
Market
Maker 24.5% 27.4% (2.9) pts 29.8% 31.5% (1.7) pts
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Equity Options Volume Statistics
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Current Month Year-to-Date
(000s) Dec-06 Dec-05 % Change Dec-06 Dec-05 % Change
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ISE
Average
Daily
Volume 2,128.5 1,775.2 19.9% 2,325.7 1,762.8 31.9%
ISE Total
Volume 42,569.8 37,278.8 14.2% 583,749.1 444,231.1 31.4%
Industry
Average
Daily
Volume 7,757.9 5,998.1 29.3% 7,347.3 5,432.7 35.2%
Market
Share 27.4% 29.6% (2.2) pts 31.7% 32.5% (0.8) pts
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Market
Share:
Customer 31.9% 33.1% (1.2) pts 32.4% 32.7% (0.3) pts
Market
Share:
Firm 21.3% 20.8% 0.5 pts 27.7% 24.7% 3.0 pts
Market
Share:
Market
Maker 26.2% 29.3% (3.1) pts 32.3% 34.3% (2.0) pts
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Index Options Volume Statistics
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Current Month Year-to-Date
(000s) Dec-06 Dec-05 % Change Dec-06 Dec-05 % Change
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ISE Average Daily
Volume 29.9 21.5 39.0% 32.7 17.7 84.7%
ISE Total Volume 598.3 452.0 32.3% 8,212.4 4,464.6 83.9%
Industry Average
Daily Volume 736.2 541.6 35.9% 731.2 536.1 36.4%
Market Share 4.1% 4.0% 0.1 pts 4.5% 3.3% 1.2 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 December would increase to 31.2% from 27.4%, an increase of 3.8 market share points.
For the full year 2006, our market share would increase to 32.9% from 31.7%, an increase of 1.2 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 December.
- On December 8, 2006, ISE Stock Exchange successfully launched its fully-displayed stock market. With the launch of the fully-displayed market, the ISE Stock Exchange now offers the only fully-electronic dual structure that provides integrated access to both displayed and non-displayed liquidity pools.
- On December 19, 2006, ISE announced the development and launch of the ISE-Revere Wal-Mart Supplier Index (Ticker: WMX) in collaboration with Revere Data LLC. This unique, relationship-based index allows investors to track the overall price performance of companies that derive a significant portion of their revenues from supplying Wal-Mart Stores Inc., the world's leading retailer.
- ISE traded more volume than any other options exchange in 737 of 1,489 issues in its listings.
