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The International Securities Exchange (ISE) today reported that in December 2007, its options exchange traded an average daily volume of 3.1 million contracts. The ISE Stock Exchange traded an average daily volume of 39.7million shares in the same period.
Average daily trading volume for equity and index options contracts increased 45.4% to 3.1 million contracts in December as compared to 2.2 million contracts during the same period in 2006. Total equity and index options volume for the month increased 45.4% to 62.8 million contracts from 43.2 million contracts in the same year-ago period.
For the full year 2007, average daily trading volume of equity and index options increased 35.9% to an annual record of 3.2 million contracts traded as compared to 2.4 million contracts traded in 2006. Total equity and index volume for 2007 increased 35.9% to 804.4 million contracts from 592.0 million contracts in 2006.
Equity and Index Options Volume Statistics
| Current Month | Year-to-Date | |||||
| (000s) | Dec-07 | Dec-06 | % Change | Dec-07 | Dec-06 | % Change |
| ISE Average Daily Volume | 3,138.4 | 2,158.4 | 45.4% | 3,204.6 | 2,358.4 | 35.9% |
| ISE Total Volume | 62,767.2 | 43,168.0 | 45.4% | 804,359.1 | 591,961.5 | 35.9% |
| Industry Average Daily Volume | 11,861.8 | 8,494.6 | 39.6% | 11,405.7 | 8,079.1 | 41.2% |
| Market Share | 26.5% | 25.4% | 1.1 pts | 28.1% | 29.2% | (1.1) pts |
| Market Share: Customer | 29.3% | 29.4% | (0.1) pts | 29.0% | 30.0% | (1.0) pts |
| Market Share: Firm | 24.8% | 19.6% | 5.2 pts | 26.3% | 25.0% | 1.3 pts |
| Market Share: Market Maker | 24.9% | 24.5% | 0.4 pts | 27.9% | 29.8% | (1.9) pts |
Equity Options Volume Statistics
| Current Month | Year-to-Date | |||||
| (000s) | Dec-07 | Dec-06 | % Change | Dec-07 | Dec-06 | % Change |
| ISE Average Daily Volume | 3,078.3 | 2,128.5 | 44.6% | 3,142.0 | 2,325.7 | 35.1% |
| ISE Total Volume | 61,566.2 | 42,569.8 | 44.6% | 788,639.9 | 583,749.1 | 35.1% |
| Industry Average Daily Volume | 10,935.9 | 7,757.9 | 41.0% | 10,330.0 | 7,347.3 | 40.6% |
| Market Share | 28.2% | 27.4% | 0.8 pts | 30.4% | 31.7% | (1.3) pts |
| Market Share: Customer | 31.2% | 31.9% | (0.7) pts | 31.3% | 32.4% | (1.1) pts |
| Market Share: Firm | 27.0% | 21.3% | 5.7 pts | 28.9% | 27.7% | 1.2 pts |
| Market Share: Market Maker | 26.3% | 26.2% | 0.1 pts | 30.1% | 32.3% | (2.2) pts |
Index Options Volume Statistics
| Current Month | Year-to-Date | |||||
| (000s) | Dec-07 | Dec-06 | % Change | Dec-07 | Dec-06 | % Change |
| ISE Average Daily Volume | 60.0 | 29.9 | 100.7% | 62.6 | 32.7 | 91.4% |
| ISE Total Volume | 1,200.9 | 598.3 | 100.7% | 15,719.2 | 8,212.4 | 91.4% |
| Industry Average Daily Volume | 901.6 | 736.2 | 22.5% | 1,067.3 | 731.2 | 46.0% |
| Market Share | 6.7% | 4.1% | 2.6 pts | 5.9% | 4.5% | 1.4 pts |
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 29.6% from 28.2%, an increase of 1.4 market share points.
For the full year 2007, our market share would increase to 31.2% from 30.4%, an increase of 0.8 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
Options Exchange
- ISE was the largest U.S. equity options exchange in December.
- On December 17, 2007, ISE announced the launch of a colocation service offered by Quality Technology Services, the facilities management firm at ISE's data center. Providing ultra low-latency connectivity to ISE's options and stock exchanges, ISE member firms will be able to place their trading hardware in the same building as ISE's data center which will facilitate network transit times of less than 200 microseconds.
- On December 20, 2007, ISE and Eurex announced that Eurex completed the acquisition of ISE. On a combined basis, Eurex and ISE are now the market leader in individual equity and equity index derivatives worldwide.
- Open interest in ISE FX Options reached 292,780 contracts on December 31, 2007 and average daily trading volume was 6,482 contracts for the month.
- ISE traded more volume than any other options exchange in 1,037 of 1,863 issues in its listings.
ISE Stock Exchange
- An average daily volume of 39.7 million shares traded on the ISE Stock Exchange in December.
- The ISE Stock Exchange offers opportunities for price improvement through its non-displayed liquidity pool, MidPoint MatchSM. Total price improvement in December 2007 was $3.6 million, and price improvement for all displayed market taker orders that interacted with MidPoint Match was greater than $0.01 per share.
- On December 21, 2007, ISE announced that pricing changes for the ISE Stock Exchange will result in $0.0032/$0.0030 maker/taker pricing per share for orders executed on the ISE Stock Exchange's displayed market. The pricing changes are effective on January 2, 2008.
