CBOE
2010 Annual Report
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  • Market Leadership
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Market Leadership:
2010 Trading Recap Image of SPX Pit

In 2010, trading volume at CBOE Holdings surpassed one billion contracts for the third consecutive year. Average daily volume in options at Chicago Board Options Exchange (CBOE) and C2 Options Exchange (C2), our new all-electronic market which launched on October 29, was a combined 4.4 million contracts. Options trading activity at CBOE was down slightly from the previous year, but still claimed the top spot among the industry’s nine trading venues. In the first two months of trading at C2, volume totaled 3.6 million contracts. Trading of futures at the CBOE Futures Exchange (CFE) increased 281 percent to a record 4.4 million total contracts in 2010.

At CBOE, average daily volume was 4.4 million contracts as a total of 1.1 billion contracts traded in 2010, off two percent from 2009. Three of the four most-active trading days in CBOE history occurred in 2010, including the busiest day ever, when 10.6 million contracts traded on May 6. Open interest climbed to a new high of 294.4 million contracts at year’s end, an increase of ten percent over the end of 2009.

Trading in index options posted the largest year-over-year gain at CBOE in 2010 as volume achieved a new record of 270.0 million contracts, with an average daily volume of 1.1 million contracts, 21 percent above 2009. Fueling the rise in index options trading were the impressive volumes in a pair of key exclusive contracts—options on the S&P 500 Index (SPX), which gained 13 percent to 175.3 million contracts and options on the CBOE Volatility Index (VIX), which rose 87 percent to a record 62.5 million contracts. Also experiencing increases for 2010 were options on the S&P 100 Index (OEX), up 20 percent to 10.8 million contracts, and the NASDAQ-100 Index (NDX), up 28 percent to 5.5 million contracts.

Total volume in options on Exchange Traded Funds (ETFs) during 2010 was on par with 2009 as 274.2 million contracts traded, with an average daily volume of 1.1 million contracts, just one percent behind 2009. Monthly ETF options volume reached an all-time high in May 2010 with 40.4 million contracts. The top-five-ranked ETF options by total volume at CBOE in 2010 were the Standard and Poor's Depositary Receipts (SPY), with 93.7 million contracts; PowerShares QQQ Trust (QQQ), 33.3 million; iShares Trust Russell 2000 Index Fund (IWM), 29.0 million; SPDR Gold Trust (GLD), 14.5 million; and the Financial Select SPDR (XLF), 12.4 million.

CBOE’s 2010 equity options volume totaled 571.3 million contracts traded, with an average daily volume of 2.3 million contracts, a decline of ten percent from 2009. The top five most-actively traded equity options at CBOE on the year were Citigroup, Inc. (C), Bank of America Corp. (BAC), Apple, Inc. (AAPL), Ford Motor Company (F) and General Electric Company (GE).

In a fiercely competitive and expanding industry, CBOE remained the leading U.S. options exchange in 2010, capturing 28.6 percent market share of the industry’s 3.9 billion contracts. The exchange’s total market share was down 2.8 percentage points when compared to 2009’s market share of 31.4 percent. CBOE’s market share in index options and equity options also led the industry, at 93.8 percent and 24.3 percent, respectively. Index options market share gained 2.6 percentage points on the year, while equity options market share was off 3.4 percentage points from 2009. Market share in ETF options registered 21.9 percent at CBOE, down 4.2 percentage points from the previous year.

 

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CBOE Average Daily Volume
In Millions

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CBOE Total Equity, Index and ETF
Options Volumes

In Millions

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CBOE Top Index and ETF Options
Total Volume and Y-O-Y Change

In Millions

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2010 Market Share
U.S. Options Industry Total Volume (3.9 billion contracts)

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