CBOE Holdings, Inc. (Nasdaq:CBOE) today announced that November trading volume for options on the Chicago Board Options Exchange (CBOE) and C2 Options Exchange (C2), the company’s new alternative market model, combined, totaled 93.6 million contracts, an average daily volume (ADV) of 4.5 million contracts. Futures trading on CBOE Futures Exchange (CFE) set a new monthly volume record of over 750,000 contracts in November, an ADV of 35,800 contracts.
CBOE Options Trading:
- CBOE’s November 4.4 million ADV was a five-percent increase from 4.2 million contracts per day in November 2009 and a two-percent increase over October 2010 ADV of 4.3 million contracts. Year-to-date through November, ADV of 4.5 million contracts was down one percent from the same period in 2009.
- CBOE index options – November 2010 index options ADV was 1.036 million contracts, up two percent from 1.018 million contracts in November 2009 and relatively even with October 2010’s ADV of 1.034 million contracts. Year to date through November, index option ADV of 1.1 million contracts was up 23 percent from the same period in 2009.
- CBOE equity options – November 2010 equity options ADV was 2.32 million contracts, up nine percent from 2.12 million contracts per day in November 2009 and up one percent from 2.29 million contracts per day in October 2010. Year to date through November, equity options ADV of 2.3 million contracts was down 11 percent from the same period in 2009.
- CBOE ETF options – November 2010 ETF options ADV was 1.05 million contracts, down one percent from 1.06 million contracts ADV in November 2009 and up four percent from just over one million contracts per day in October 2010. Year to date through November, ETF options ADV of 1.1 million contracts was up two percent from the same period in 2009.
- The top five most actively traded index and ETF options at CBOE during November were the S&P 500 Index (SPX), Standard and Poor’s Depositary Receipts (NYSE:SPY), CBOE Volatility Index (VIX), PowerShares QQQ Trust (NASDAQ:QQQQ), and iShares Trust Russell 2000 Index Fund (NYSE:IWM).
|CBOE Trading Volume and Market Share:|
|(trades in thousands)||Nov 10||Nov 09||%||Oct 10||%||Nov 10||Nov 09||%|
|Total Exchange ADV||4,403.7||4,209.0||5%||4,330.6||2%||4,484.9||4,534.2||-1%|
|Equity Options ADV||2,320.4||2,129.0||9%||2,288.5||1%||2,282.3||2,554.3||-11%|
|Index Options ADV||1,036.0||1,017.6||2%||1,034.3||0%||1,089.0||883.4||23%|
|ETF Options ADV||1,047.3||1,062.4||-1%||1,007.8||4%||1,113.6||1,096.5||2%|
CBOE Market Share: CBOE’s market share of total U.S. options industry volume in November was 26.3 percent, down 0.3 of a percentage point from October 2010 and a 5.5-percentage-point decline from November 2009. If the volume from dividend trades was excluded from CBOE’s data for November 2010, the Exchange’s total market share for November would increase to 27.7 percent from 26.3 percent, an increase of 1.4 market share points. Year-to-date market share through November was 29.0 percent. If volume from dividend trades was excluded, year-to-date market share would be 30.1 percent. Exclusion of dividend trades from total industry volume data presents a more relevant measure of the relative trends in the options business.
|Nov 2010||Nov 2009||% pt.||Oct 2010||% pt.||Nov 2010||Nov 2009||% pt.|
(excluding dividend trades)
CBOE November Market Share by Product:
- Index options – CBOE’s market share was 93.7 percent, down 1.5 percentage points from October 2010 and up 1.5 percentage points from November 2009.
- Equity options – CBOE’s market share was 22.3 percent, up 0.2 of a percentage point from October 2010 and down 3.7 percentage points from November 2009.
- ETF options – CBOE’s market share was 19.9 percent, down 0.9 of a percentage point from October 2010 and down 6.9 percentage points from November 2009.
C2 Trading Volume and Market Share:
C2 volume, in its first full month of trading, totaled nearly 1.2 million contracts, an ADV of 55,600 contracts. C2’s measured rollout of options classes began with the listing of a single class on October 29. By the close of November, 50 options classes were listed, which classes represent over half of the total national options volume. C2 plans to roll out all or substantially all of the most active option classes and series in the penny pilot by the end of December. See http://www.c2exchange.com/ for the rollout calendar.
|C2 Trading Volume|
|(trades in thousands)||November 2010||November 2009||% pt. Chg|
|Total C2 ADV||55.6||—||—|
|Equity Options ADV||17.3||—||—|
|ETF Options ADV||38.3||—||—|
C2 Market Share: C2’s market share of total U.S. options industry volume in November was 0.3 percent.
|C2 Market Share|
|November 2010||November 2009||% pt. Chg|
CFE Futures Trading:
- With volume totaling 751,481 contracts, CBOE Futures Exchange (CFE) had its most active month ever in November, the fourteenth consecutive month of year-over-year volume increases.
- VIX futures, the most active of CFE’s products, posted a record ADV of 35,758 contracts in November, compared to an ADV of 9,199 contracts in November 2009 and an ADV of 22,777 contracts in October 2010.
- Year to date through November, VIX futures volume averaged 16,682 contracts per day compared with an ADV of 4,362 contracts during the same period one year ago.
- VIX futures open interest during the month recorded its highest level ever at 172,028 contracts on November 15.
CBOE Holdings Average Transaction Fee Per Contract:
The following represents average transaction fee per contract based on a three-month rolling average, reported on a one-month lag. The average transaction fee per contract represents total transaction fees recognized for the period divided by total contracts traded during the period. Average transaction fees per contract can be affected by various factors, including exchange fee rates, volume-based discounts and transaction mix by contract type and product type.
|(In dollars)||Three-Month Period Ended|
|Product:||Oct 2010||Sept 2010||Aug 2010||July 2010|
|Exchange Traded Funds||0.228||0.236||0.233||0.222|
|Total Options Average Transaction Fee Per Contract||0.296||0.300||0.296||0.288|
|Total Average Transaction Fee Per Contract||$0.302||$0.306||$0.301||$0.293|
CBOE Holdings, Inc. is the holding company for Chicago Board Options Exchange (CBOE) and other subsidiaries. CBOE, the largest U.S. options exchange and creator of listed options, continues to set the bar for options trading through product innovation, trading technology and investor education. CBOE offers equity, index and ETF options, including proprietary products, such as S&P 500 options (SPX), the most active U.S. index option, and options on the CBOE Volatility Index (VIX). Other products engineered by CBOE include equity options, security index options, LEAPS options, FLEX options, and benchmark products such as the CBOE S&P 500 BuyWrite Index (BXM). CBOE’s Hybrid Trading System incorporates electronic and open-outcry trading and is powered by CBOEdirect, a proprietary, state-of-the-art electronic platform that also supports the CBOE Futures Exchange (CFE), CBOE Stock Exchange (CBSX) and OneChicago. CBOE is home to the world-renowned Options Institute and http://www.cboe.com/, named “Best of the Web” for options information and education.
CBOE is regulated by the Securities and Exchange Commission (SEC), with all trades cleared by the AAA-rated Options Clearing Corporation (OCC).
CBOE®, Chicago Board Options Exchange® , CBSX® , CBOE Stock Exchange®, CFE®, CBOEdirect®, FLEX®, Hybrid®, LEAPS®, CBOE Volatility Index® and VIX® are registered trademarks, and BuyWrite(SM), BXM(SM), C2(SM), C2 Options Exchange, Incorporated(SM) and CBOE Futures Exchange(SM) are servicemarks of Chicago Board Options Exchange, Incorporated. Standard & Poor’s® , S&P® , S&P 500® , Standard and Poor’s Depositary Receipts®, and SPDR® are registered trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Chicago Board Options Exchange, Incorporated. All other trademarks and servicemarks are the property of their respective owners.
This press release contains statements which may be considered forward-looking statements within the meaning of the Securities Exchange Act of 1934, including, without limitation, statements regarding operating strategies, future plans and financial results. Forward-looking statements may be accompanied by words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “intend”, “may”, “possible”, “predict”, “project” or similar words, phrases or expressions. The Company does not undertake any obligation to update the information contained herein, which speaks only as of the date of this press release. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, including our Quarterly Report on Form 10-Q for the quarter ended March 31, 2010 under the heading “Forward-Looking Statements” and/or “Risk Factors” and other filings we have made with the Securities and Exchange Commission from time to time. Such discussions regarding risk factors and forward-looking statements are incorporated herein by reference.
SOURCE CBOE Holdings, Inc.