CBOE Hit 1.2 Billion In 2008

The Chicago Board Options Exchange saw its volume jump 26 percent over 2007 to 1.2 billion contracts in 2008 for an ADV of 4.7 million contracts. That’s the highest annual volume in the CBOE’s 35-year history.

The volumes for cash-settled index options were up 13 percent over 2007 to about 259 million contracts in 2008, an ADV of a little more than 1 million contracts. ETF options saw their volume jump far more dramatically, up 55 percent over 2007 to a total for the year of roughly 330 million contracts (an ADV of 1.3 million). The exchange’s market share on index options is 89 percent, but just 30 percent on ETF options.

Among the index and ETF options, there were some standouts in terms of volume. The volume of options on the Financial Select SPDR (NYSE Arca: XLF) was up 283 percent over 2007 to nearly 26 million contracts for the year. Options on the S&P 500 Index saw their volumes increase more than 13 percent over 2007 to 179 million contracts.

CBOE Lists Options On Gold, Silver ETFs

The CBOE listed options on the iShares COMEX Gold Trust (NYSE Arca: IAU) and the iShares Silver Trust (NYSE Arca: SLV) on Dec. 8. The designated primary market maker for these ETF options is Barclays Capital.

IAU and SLV hold physical gold bullion and silver bullion rather than futures contracts. The contracts, however, are not the first options on a precious metals ETF—that distinction goes to the SPDR Gold Trust ETF (NYSE Arca: GLD), which saw options tied to it launch in June 2008.