CBOE 2009 Volumes Over 1 Billion
The Chicago Board Options Exchange’s total 2009 volume was down 5 percent from 2008 to 1.13 billion contracts, but last year was nevertheless the second consecutive year for which the exchange’s total contracts traded exceeded 1 billion. Average daily volume was 4.5 million contracts, down from 4.7 million in 2008.
Equity options had a great year, with volumes up 5 percent; however, index and ETF options were the chief drags on the exchange’s total volume. Index options saw their ADV and total volumes decline 14 percent to 884,000 and 223 million, respectively; meanwhile, ETF options volumes fell 16 percent to an ADV of just over 1 million and a total 2009 volume of 277 million.
The most actively traded of the ETF and index options were those on the S&P 500 Index (SPX), Standard & Poor’s Depositary Receipts (SPY), PowerShares QQQ Trust (QQQQ), CBOE Volatility Index (VIX) and iShares Russell 2000 Index Fund (IWM).
CBOE Plans S&P 500 Dividend Index Options
The CBOE announced in December that the SEC had cleared it to launch options on the S&P 500 Dividend Index (DVS), though no listing date was given at the time.
The underlying index tracks the accumulated ex-dividend amounts of the S&P 500’s component securities during a quarterly accrual period. The options contracts will be useful for investors who want to hedge the differences between expected and actual ex-dividend amounts, the CBOE said. Also, the dividend index’s calculation methodology is very similar to that of the S&P 500 (same components, divisor, shares outstanding, and weighting methodology), so it can easily be used in trading strategies involving other S&P 500 options.
The European-style contract is the first of its kind to be listed in the U.S., according to the CBOE, which has exclusive listing rights on the index.
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