NASDAQ Tops Options Trading in May

by OptionsZone Experts | June 2, 2011 4:35 am

The NASDAQ OMX Group (NASDAQ: NDAQ[1]) took the lead in options trading[2] volume in May, topping its rivals the Chicago Board Options Exchange (NASDAQ: CBOE[3]) and the NYSE Euronext (NYSE: NYX[4]), according to statistics from the Options Clearing Corp.

The Nasdaq garnered a 28.8% market share of total options trading, beating out the CBOE with a 24.5% share and the NYSE with 23.6%. Three other options exchanges accounted for the remaining 23.1%.

The CBOE had a rough month. Its 24.5% share is down from the 32.4% in earned in May 2010.

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The war for options supremacy is primarily conducted over trading volume in equity and exchange-traded funds (ETFs). The CBOE dominates the trading of index options, controlling about 95% of the share. But index options typically account for less than 10% of total option volume.

The Nasdaq, which combines the volume of the Nasdaq and the OMX PHLX, took the lead in equity options trading in May, grabbing a nearly 31% share, topping the NYSE’s share of a little more than 25% and the CBOE’s nearly 20%.

Options volume dropped in May by 12% compared with May 2010, according to the OCC. However, about 1.8 billion options traded through May 31, a rise of 9% from the same period a year ago, the OCC reported.

The fastest growing options exchange is the BATS Global Markets. It garnered a 3.75% market share in May, compared with 0.35% in May a year ago. The BATS began options trading in the U.S. in March 2010. It recently announced plans for an initial public offering. The International Securities Exchange has been losing share, dropping to 16.9% this May compared with 19.5% a year ago.

  1. NDAQ:
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  3. CBOE:
  4. NYX:
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