03.13.2012

ISE Reports Business Activity for February 2012

NEW YORK, March 1, 2012 –

ISE was the second largest equity options exchange in February with market share of 17.8%, excluding dividend trades.
Dividend trades made up 8.0% of industry volume in February 2012.
The International Securities Exchange (ISE) today reported average daily volume of 2.7 million contracts in February 2012. This represents a decrease of 16.6% compared to February 2011. Total options volume for the month was 53.5 million contracts. ISE was the second largest U.S. equity options exchange in February with market share of 17.8%*.

Business highlights for the month of February include:

On February 8, ISE announced that it was named “Best Exchange Client Service” at the Wall Street Letter 2012 Institutional Trading Awards.
On February 13, ISE announced the launch of its Premium Access connection in its primary data center. Premium Access enables member firms with a direct connection to ISE to reduce their roundtrip network latency by up to 150 microseconds, or approximately 90 percent.
Detailed volume statistics are found in the tables below:

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

Current Month

Year-to-Date

(000s)
Feb-12

Feb-11

% Change

Feb-12

Feb-11

% Change

ISE Average Daily Volume
2,676.4

3,208.5

-16.6%

2,683.9

3,259.2

-17.7%

ISE Total Volume
53,527.2

60,962.0

-12.2%

107,357.9

127,109.7

-15.5%

Equity and ETF Options Volume Statistics

Current Month

Year-to-Date

(000s)
Feb-12

Feb-11

% Change

Feb-12

Feb-11

% Change

ISE Average Daily Volume
2,650.0

3,171.5

-16.4%

2,660.4

3,223.5

-17.5%

ISE Total Volume
53,000.0

60,259.4

-12.0%

106,417.4

125,717.4

-15.4%

Market Share*
17.8%

19.0%

(1.2) pts

18.3%

19.2%

(0.9) pts

Index Options Volume Statistics

Current Month

Year-to-Date

(000s)
Feb-12

Feb-11

% Change

Feb-12

Feb-11

% Change

ISE Average Daily Volume
26.2

36.7

-28.7%

23.3

35.4

-34.3%

ISE Total Volume
523.6

697.2

-24.9%

931.1

1,380.9

-32.6%

ISE FX Options® Volume Statistics

Current Month

Year-to-Date

(000s)
Feb-12

Feb-11

% Change

Feb-12

Feb-11

% Change

ISE Average Daily Volume

0.2

0.3

-33.3%

0.2

0.3

-33.3%

ISE Total Volume
3.6

5.4

-33.3%

9.4

11.4

-17.5%

*ISE does not include dividend trade volume in market share statistics. ISE’s market share statistics continue to be negatively impacted by dividend trade strategies that are permitted based on a non-economic rationale, and inflate and distort trading volume and market share when transacted. 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.

Dividend Trade Impact on Industry Market Share**

February 2012
(000s)
Equity Options Volume Excluding Dividend Trades

Dividend Trade Volume

Total Reported Equity Options Volume

True Market Share

Market Share With Dividend Trades

Market Share Difference

Dividend Trades as % of Equity Options Volume

CBOE
71,667.2
307.8
71,974.9
24.1%
22.3%
1.8 pts

0.4%
ISE
53,000.0
0.0
53,000.0
17.8%
16.4%
1.4 pts

0.0%
PHLX
50,261.5
20,829.5
71,091.0
16.9%
22.0%
(5.1) pts

29.3%
AMEX
47,168.0
270.9
47,439.0
15.9%
14.7%
1.2 pts

0.6%
ARCA
30,163.6
4,594.2
34,757.8
10.2%
10.8%
(0.6) pts

13.2%
NSDQ
17,228.9
0.0
17,228.9
5.8%
5.3%
0.5 pts

0.0%
BOX
13,104.9
0.0
13,104.9
4.4%
4.1%
0.3 pts

0.0%
BATS
9,970.9
0.0
9,970.9
3.4%
3.1%
0.3 pts

0.0%
C2
4,726.0
0.0
4,726.0
1.6%
1.5%
0.1 pts

0.0%
**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.

ISE Background
The International Securities Exchange (ISE) operates a leading U.S. options exchange and offers options trading on over 2,000 underlying equity, ETF, index, and FX products. As the first all-electronic options exchange in the U.S., ISE transformed the options industry by creating efficient markets through innovative market structure and technology. Regulated by the Securities and Exchange Commission (SEC) and a member-owner of The Options Clearing Corporation (OCC), ISE provides investors with a transparent marketplace for price and liquidity discovery on centrally cleared options products. ISE continues to expand its marketplace through the ongoing development of enhanced trading functionality, new products, and market data services. As a complement to its options business, ISE has expanded its reach into multiple asset classes through strategic investments in financial marketplaces and services that foster technology innovation and market efficiency. Through minority investments, ISE participates in the securities lending and equities markets. ISE also licenses its proprietary Longitude technology for trading in event-driven derivatives markets.

ISE is a wholly owned subsidiary of Eurex, a leading global derivatives exchange. Eurex itself is jointly operated by Deutsche Börse AG (Ticker: DB1) and SIX Swiss Exchange AG. Together, Eurex and ISE are the global market leader in individual equity and equity index derivatives. For more information, visit www.ise.com.

CONTACT:

Media:
Molly McGregor
International Securities Exchange
212-897-0275
mmcgregor@ise.com

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