CBOE Holdings 2010 Daily Trading Volume Averages 4.5 Million Contracts

CHICAGO, Jan. 3, 2011 /PRNewswire/ -- CBOE Holdings, Inc. (Nasdaq: CBOE) today reported that 2010 trading volume exceeded one billion contracts for the third consecutive year. Trading volume on the Chicago Board Options Exchange (CBOE) and C2 Options Exchange (C2), the company's new alternative market model, totaled a combined 1.12 billion contracts, an ADV of 4.5 million contracts.

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Futures trading at CBOE Futures Exchange (CFE) set a new annual volume record of 4.4 million contracts in 2010, an ADV of over 17,000 contracts.

CBOE Options Trading Volume and Market Share

2010 Volume:

• CBOE trading volume in 2010 totaled 1.115 billion contracts versus 1.134 billion in 2009. ADV in 2010 was 4.4 million contracts, down two percent from the 2009 ADV of 4.5 million contracts.
• CBOE index options volume totaled 270.0 million contracts versus 222.8 million in 2009. ADV in 2010 was nearly 1.1 million contracts, up 21 percent from ADV 884,000 contracts in 2009.
• CBOE equity options volume totaled 571.3 million contracts versus 634.7 million in 2009. ADV in 2010 was 2.3 million contracts, down ten percent from ADV 2.5 million contracts in 2009.
• CBOE ETF options volume totaled 274.2 million contracts versus 277.3 million in 2009.  ADV in 2010 was 1.09 million contracts, down one percent from ADV 1.10 million contracts in 2009.
• The top five most actively traded index and ETF options at CBOE in 2010 were the S&P 500 Index (SPX), Standard and Poor's Depositary Receipts (SPY), CBOE Volatility Index (VIX), PowerShares QQQ Trust (QQQQ), and iShares Trust Russell 2000 Index Fund (IWM).
• CBOE VIX options volume totaled a record 62.5 million contracts versus 33.3 million in 2009. ADV in 2010 was nearly 248,000 contracts, up 87 percent from ADV 132,000 contracts in 2009.

December 2010 Volume:

• CBOE trading volume in December 2010 totaled 84.0 million contracts versus 91.9 contracts in December 2009. ADV in December was 3.8 million contracts, down nine percent from December 2009 ADV of 4.2 million contracts and down 13 percent from November 2010 ADV of 4.4 million contracts.
• See additional volume details for December by CBOE product category in the table below.

Expanded full-year and December 2010 volume information for CBOE index and ETF options is available at: www.cboe.com/data/monthlyvolume.aspx.

CBOE 2010 Market Share of total U.S. options industry volume was 28.6 percent, down 2.8 percentage points from 2009.  If the volume from dividend trades was excluded from CBOE's data for 2010, the Exchange's total market share for the year would increase to 29.8 percent from 28.6 percent, an increase of 1.2 market share points.

CBOE December Market Share was 24.6 percent, down 1.7 percentage points from November 2010 and a 6.6-percentage-point decline from December 2009.  If the volume from dividend trades was excluded from CBOE's data for December 2010, the Exchange's total market share for December would increase to 26.6 percent from 24.6 percent, an increase of 2.0 market share points.

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

CBOE 2010 Market Share by Product:

• Index options – CBOE 2010 market share was 93.8 percent, up 2.6 percentage points from 2009.
• Equity options – CBOE 2010 market share was 24.2 percent, down 3.4 percentage points from 2009.
• ETF options – CBOE 2010 market share was 21.8 percent, down 4.2 percentage points from 2009.
• See additional CBOE market share by product details for December 2010 in the table above.

C2 Trading Volume and Market Share:

• C2, which began trading on October 29, 2010, posted 3.6 million contracts, an ADV of 82,000 contracts.
• C2 trading volume during December totaled over 2.4 million contracts, an ADV of 111,000 contracts.
• Using a measured rollout to introduce options classes, C2 listed 356 options classes by the end of 2010. The listed options classes represent 81 percent of all U.S. options volume.

C2 Market Share: C2's market share of total U.S. options volume in 2010 was 0.1 percent.  In December 2010, market share totaled 0.7 percent, up 0.4 of a percentage point from November 2010.

CFE Trading Volume

2010 Volume:

• CBOE Futures Exchange posted a record 4,402,378 contracts traded in 2010, up 281 percent over 2009 volume of 1,155,318 contracts and up 279 percent over the previous annual record of 1,161,019 contracts traded in 2008.  Average daily volume in 2010 was 17,470 contracts, up 281 percent  versus ADV of 4,585 contracts in 2009.
• Volume in VIX futures in 2010 totaled a new record of 4,392,446 contracts traded, up 284 percent from the previous high of 1,144,188 contracts in 2009.  Average daily volume for the year was a new high of 17,430 contracts, surpassing the 4,540 contracts per day in 2009 by 284 percent.

December 2010 Volume:

• December was the second-busiest month ever at CFE as 556,250 contracts changed hands, an increase of 294 percent over the 141,002 contracts traded in December 2009.  Average daily volume for December was 25,284 contracts, up versus the 6,410 contracts per day in December 2009, but down from the record average daily volume of 35,785 contracts during November 2010.
• December was the fifteenth consecutive month of year-over-year volume increases at CFE.
• VIX futures volume posted a record 555,494 contracts in December, exceeding the 140,781 contracts traded in December 2009 by 295 percent. Average daily volume in VIX futures during December was 25,250 contracts, versus ADV 6,399 contracts in December 2009 and the record 35,758 contracts per day from November 2010.

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 for CBOE, C2, and CFE 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.

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 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), CBOE Futures Exchange(SM) and SPX(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.

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SOURCE CBOE Holdings, Inc.