ISE 2 year anniversary

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mskl

For anyone that cares, here is a breakdown of market share over the last two years:


May 2000

1. CBOE: 42.48%
2. AMEX: 33.15%
3. PSE: 15.51%
4. PHLX: 8.83%
5. ISE: .04%


May 2001

1. CBOE: 35.27%
2. AMEX: 28.62%
3. PSE: 15.34%
4. PHLX: 12.95%
5. ISE: 7.82%


May 2002

1. CBOE: 29.00%
2. AMEX: 27.48%
3. ISE: 20.96%
4. PSE: 11.45%
5. PHLX: 11.11%





No surprise to see the ISE move up the way they have. But what is a little surprising is that the AMEX has managed to hang on to 27.48%. They are the worst Exchange in terms of client access.

Keep in mind the ISE currently doesn't list all the Equity option contracts so their numbers should be a little higher. They are currently the primary market (by volume) in 166 of the 515 issues listed on the ISE.

And they are still expecting more CMM's to join. Currently 65 of 100 are providing liquidity.



Also of note:

for the month of May 2002, Customer volume and Specialist volume are in a dead heat (20.6 million contracts).


For Customer accounts, the market share is a little different:

1. CBOE: 31.21%
2. AMEX: 29.32%
3. ISE: 15.24%
4. PHLX: 12.23%
5. PSE: 12.00%


For specialist accounts:

1. ISE: 33.15%
2. CBOE: 25.46%
3. AMEX 22.93%
4. PSE: 10.28%
5. PHLX 8.18%


As you can see, the ISE still has some work to be done when it comes to attracting customer orders. The fact that they lead in specialist volume is an indication of their willingness to trade size and willingness to trade with anyone.
 
the QQQ's account for about 10% of the total option volume.


The AMEX, in May had a 43% market share of the QQQ's.

1. AMEX: 43.25%
2. CBOE: 27.73%
3. ISE: 15.06%
4. PSE: 12.36%
5. PHLX: 1.6%


Excluding QQQ's, the market share is:


1. CBOE: 29.14%
2. AMEX: 25.66%
3. ISE: 21.64%
4. PHLX: 12.21%
5. PSE: 11.35%
 
It doesn't surprise me that an electronic exchange draws more non cs orders. Your typical market makers are pussies when comes with trading with BDs. The typical ISE MM does not care because they are huge banks.
 
Has anyone heard anything more about the Boston Option exchange? Web searches are coming up witht he eleitetrader thread!
 
Originally posted by Trajan
It doesn't surprise me that an electronic exchange draws more non cs orders. Your typical market makers are pussies when comes with trading with BDs. The typical ISE MM does not care because they are huge banks.
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Trajon,

I think the big banks care as much as anyone. (My experience has shown that on a firm wide basis some of the biggest nags and cry babies come from some of the biggest players (none of which I'm glad to say are PMM's on the ISE list). Most of the PMM's at the ISE just have better systems or have learned that they need to honor their quotes if they are going to compete.
 
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