The Options Insider

CBOE February ADV Volume Fell 15 Percent Year-Over-Year

by | Mar 4, 2013 | Industry

CBOE Holdings, Inc. (NASDAQ:?CBOE) reported its February ?trading volume for options contracts totaled 83.14 million contracts?on the Chicago?Board Options Exchange??(CBOE?) and?C2 Options ExchangeSM?(C2SM) and futures contracts on?CBOE Futures ExchangeSM?(CFE?).

February average daily volume (ADV) was 4.38 million contracts, up three percent from January 2013’s 4.24 million contracts and down 15 percent from February 2012’s 5.14 million contracts. ?

In February, CBOE Volatility Index? (VIX?) futures saw a record-breaking month for trading volume; this was a second consecutive month of record activity. ? ?

CBOE February 2013 Trading Volume?

  • CBOE February ADV was 3.95 million contracts, down 18 percent from the previous year’s 4.84 million ADV contracts and up three percent from?January 2013’s 3.85 ?million ADV contracts.
  • On?February 26, VIX options established an all-time, single-day volume record with 1,388,634 contracts. This record beat the previous one with 1,219,226 contracts traded on?September 11, 2012.

CBOE Market Share

  • February CBOE?market share for total U.S. options industry volume was 23.4 percent, up one percentage point from?January 2013?and down 4.3 percentage points from the previous February. If the volume from dividend trades was excluded from industry data for February, the Exchange’s total market share would be 24.1 percent. Exclusion of dividend trades from total industry volume data presents a more relevant measure of the relative trends in the options business.

CBOE Futures Exchange Trading Volume

  • VIX futures trading volume established a new all-time monthly record in February with its 3,062,344 contracts, surpassing the previous record of 2,897,739 contracts from January 2013.
  • VIX futures ADV during February reached a new all-time high of 161,176 contracts.? This ADV record topped the 66,924 contracts per day in?February 2012 by 141 percent and the previous record from January’s ADV of 137,988 contracts by 17 percent.
  • February was the first time that total monthly volume in VIX futures eclipsed the three-million-contract mark and the sixth consecutive month that volume surpassed the two-million-contract mark. ? ?

C2 Trading Volume and Market Share

  • February C2 volume totaled just under five million contracts. ADV was 263,100 contracts,a nine percent rise from?February 2012’s 241,400 ADV contracts and up five percent from?January 2013?ADV of 250,100 contracts.
  • February C2 market share was 1.6 percent, up 0.2 of a percentage point from?February 2012?and up 0.1 of a percentage point from January 2013.