Exchange August Volume Reports: ISE,CBOE

Posted September 5th, 2012 by The Options Insider in Industry

On Tuesday, the following exchanges released their August options volume reports.

ISE

According to ISE's press release, it represented the second largest equity options exchange in August with a market share of 17.9%, excluding dividend trades.

For August, dividend trades made up 5.1% of industry volume.

ISE reported average daily volume of 2.1 million contracts in August, which represents a 48.2 percent decline as compared to the previous August that had exceptionally high volatility.

August's total options volume was 49.1 million contracts.

In addition, on August 14, ISE completed its roll out of Implied Order functionality for all products in its complex order book. Implied Orders significantly enhance ISEís industry-leading complex order book by enabling greater interaction of multi-legged orders with the regular order book.

CBOE

On Tuesday, CBOE Holdings Inc. reported in a press release that on its Chicago Board Options ExchangeÆ (CBOEÆ) and C2 Options Exchange^SM(C2^SM) and futures contracts on CBOE Futures Exchange (CFEÆ) totaled over 91 million contracts.

August highlights

∑ August 2012 average daily volume (ADV) combined for the three exchanges was 3.97 million contracts, a 40 percent decrease as compared to last August's all-time monthly record ADV of 6.65 million contracts in August 2011 and a seven percent decline from 4.24 million contracts ADV in July 2012.

Year-to-date through August 2012, consolidated ADV for the three exchanges was 4.65 million contracts, down seven percent from the same period a year ago.

CBOE Trading Volume and Market Share

CBOE trading volume for August 2012 ADV was 3.75 million contracts, down 40 percent from the all-time record 6.26 million contracts ADV in August 2011 and down six percent from July 2012 ADV of 3.97 million contracts.
The five most actively traded index and ETF options at CBOE during August included the S&P 500Æ Index (SPX^SM ) options, Standard & Poor's Depositary Receipt (SPY) ETF options, CBOE Volatility IndexÆ (VIXÆ Index) options, PowerShares QQQ Trust (QQQ) ETF options, and iShares Trust Russell 2000 Index Fund (IWM) ETF options.

CBOE Market Share

CBOE August market share was 27.7 percent, up 1.5 percent from August 2011 and up 0.5 percent from July 2012. If the volume from dividend trades was excluded from industry data for August 2012, CBOE's total market share would be 28.7 percent.

Exclusion of dividend trades from total industry volume data presents a more relevant measure of the relative trends in the options business.