ISE Reports Monthly Volume For October 2010

The International Securities Exchange (ISE) today reported average daily volume of 2.9 million contracts in October 2010.

Average daily trading volume for all options contracts decreased 26.0% to 2.9 million contracts in October as compared to 4.0 million contracts during the same period in 2009. Total options volume for the month decreased 29.3% to 61.7 million contracts from 87.2 million contracts in the same year-ago period.

On a year-to-date basis, average daily trading volume of all options decreased 25.0% to 3.0 million contracts traded. Total year-to-date options volume through October 2010 decreased 25.4% to 626.5 million contracts from 839.3 million contracts in the same period last year.

Total Options Volume (Equity, ETF, Index and FX Options)

Current Month

Year-to-Date

(000s)
Oct-10

Oct-09

% Change

Oct-10

Oct-09

% Change

ISE Average Daily Volume

2,936.5

3,965.7

-26.0%

2,997.6

3,996.8

-25.0%

ISE Total Volume

61,667.2

87,245.4

-29.3%

626,495.1

839,318.0

-25.4%

Industry Average Daily Volume

16,286.0

15,019.7

8.4%

15,338.8

14,536.2

5.5%

Market Share

18.0%

26.4%

(8.4) pts

19.5%

27.5%

(8.0) pts

Market Share: Customer

18.4%

28.2%

(9.8) pts

20.2%

29.5%

(9.3) pts

Market Share: Firm

17.0%

22.3%

(5.3) pts

17.7%

24.9%

(7.2) pts

Market Share: Market Maker

18.1%

25.8%

(7.7) pts

19.6%

26.5%

(6.9) pts

Equity and ETF Options Volume Statistics

	Current Month			Year-to-Date
(000s)	Oct-10	Oct-09	% Change	Oct-10	Oct-09	% Change
ISE Average Daily Volume	2,903.9	3,907.7	-25.7%	2,949.4	3,941.9	-25.2%
ISE Total Volume	60,981.6	85,968.5	-29.1%	616,428.4	827,807.0	-25.5%
Industry Average Daily Volume	15,198.5	13,942.2	9.0%	14,168.3	13,572.8	4.4%
Market Share	19.1%	28.0%	(8.9) pts	20.8%	29.0%	(8.2) pts
Market Share: Customer	19.2%	29.7%	(10.5) pts	21.1%	31.0%	(9.9) pts
Market Share: Firm	19.0%	24.4%	(5.4) pts	19.9%	26.9%	(7.0) pts
Market Share: Market Maker	19.1%	27.4%	(8.3) pts	20.8%	27.9%	(7.1) pts

Index Options Volume Statistics

	Current Month			Year-to-Date
(000s)	Oct-10	Oct-09	% Change	Oct-10	Oct-09	% Change
ISE Average Daily Volume	32.3	56.6	-42.9%	47.0	53.5	-12.2%
ISE Total Volume	677.4	1,244.8	-45.6%	9,812.8	11,228.5	-12.6%
Industry Average Daily Volume	1,087.1	1,076.0	1.0%	1,169.3	962.1	21.5%
Market Share	3.0%	5.3%	(2.3) pts	4.0%	5.6%	(1.6) pts

ISE FX Options® Volume Statistics

Current Month

Year-to-Date

(000s)

Oct-10

Oct-09

% Change

Oct-10

Oct-09

% Change

ISE Average Daily Volume

0.4

1.5

-73.3%

1.2

1.3

-7.7%

ISE Total Volume

8.1

32.1

-74.8%

253.9

282.5

-10.1%

Dividend Trade Impact on Industry Market Share*

(000s)

Total Equity Options Volume

Dividend Trade Volume

Reported Equity Options Market Share

Market Share Excluding Dividend Trades

Market Share Difference

PHLX 77,563.1 22,842.0 24.3% 18.6%
(5.71) pts

NYSE ARCA 38,548.7 1,767.0 12.1% 12.5%
0.4 pts

CBOE 69,222.5 201.3 21.7% 23.5%
1.8 pts

NYSE AMEX 44,242.2 96.2 13.9% 15.0%
1.1 pts

ISE 60,981.6 0 19.1% 20.7%
1.6 pts

NOM 15,092.8 0 4.7% 5.1%
0.4 pts

BOX 8,267.8 0 2.6% 2.8%
0.2 pts

BATS 5,249.9 0 1.6% 1.8%
0.2 pts

C2 0.7 0 0.0% 0.0%
0.0 pts

*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. 2010 YTD data only is only available from June 2010 onwards.

ISE's market share statistics continue to be negatively impacted by dividend trade strategies that are permitted based on a non-economic rationale. These trades temporarily inflate and distort trading volume and market share when transacted.

If the volume from dividend trades were excluded from ISE's data for October 2010, our market share in equity options would increase to 20.7% from 19.1%, an increase of 1.6 market share points. 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.

Monthly Highlights

On October 6, 2010, ISE announced that it extended the two month fee waiver for new users of PrecISE Trade®, ISE's proprietary front-end trading terminal.
ISE traded more volume than any other options exchange in 531 of 2,331 issues in its listings.