May Options Trading Volume Increased 18%
The Options Industry Council (OIC) announced that total options trading volume in May came in at 314,799,038 options contracts, up 17.96 percent compared to May 2008 volume of 266,870,046 contracts.
Daily trading volume for May 2009 averaged 15,739,952 contracts compared to 12,708,097 contracts each day in May 2008, which equals a 23.86 percent increase. Year-to-date trading volume for May stood at 1,499,660,142 contracts compared to the same point last year when 1,432,175,576 contracts were traded, representing a 4.7 percent increase. Year-to-date trading volume averaged 14,702,551 contracts each day through May, 6.8 percent greater than the 13,770,919 contracts averaged each day for the same period last year.
The OIC also reported that equity options volume in May came in at 296,098,407 contracts, an increase of 19.93 percent over the 246,899,892 contracts exchanged during the same period last year. Daily equity options volume had an average of 14,804,920 contracts per day in May, which is 25.92 percent more than the same period last year when 11,757,138 contracts were averaged each day. Year-to-date equity options stood at 1,401,314,361 contracts, representing an increase of 6.14 percent compared to the same point last year when 1,320,293,884 contracts were traded.
The CBOE made the following announcements:
The Exchange experienced a 21-percent decrease in January average daily trading volume (ADV), an eight-percent increase in February ADV, and a six-percent increase in March ADV (best March ever at the Exchange) over the same periods in 2008.
The CBOE Futures Exchange (CFE) launched trading in CBOE mini-VIX futures, a contract one-tenth the size of CFE's standard VIX futures contract. The CBOE Volatility Index (VIX), based on real-time S&P 500 Index (SPX) options listed on CBOE, reflects investors' consensus view of future expected market volatility of the S&P 500 Index.
The CBOE removed long-standing blackout dates on FLexible Exchange (FLEX) options, making way for these contracts to expire on any day of the month. By removing the blackout periods associated with key expiration periods, customers who trade over-the-counter equity and index contracts may now trade exchange-traded contracts with similar characteristics and no expiration restrictions.
While CBOE's first quarter financial results were down following a string of record quarters, overall trading volume was better than expected in light of the difficult market.
The broad product line has proven to be useful to customers, even in challenging markets, and they continue to invest in growth opportunities to fortify their leadership position. The CBOE's second quarter is off to a good start, with average daily volume thus far in April up more than 25 percent over the same time last year.
