CBOE volumes down in tough 2015

CBOE suffers a difficult year, losing market share amid declining trading volumes.

US derivatives exchange operator CBOE has revealed an 11% decrease in trading volumes in 2015.

Figures published by the Chicago-based group showed trading volume for options contracts on CBOE, C2 Options Exchange (C2) and futures contracts on CBOE Futures Exchange (CFE) totalled 1.2 billion contracts in 2015, a decrease of 11% from the record 1.3 billion contracts in 2014.

In 2015, total trading volume at CBOE options exchange was 1.0 billion contracts, down 13% from the record volume in 2014.  Average daily volume (ADV) was 4.1 million contracts, also down 13% from the record ADV set in 2014. In equity options, total volume in 2015 was 370.1 million contracts, and ADV was 1.5 million contracts, both down 22% from 2014.

CBOE and CFE did however set several trading records during the year. Commenting on the figures, CBOE said: “Index options trading at CBOE reached a new all-time high for a third consecutive year, driven by record trading in S&P 500 Index (SPX) options.”

Trading at CBOE in December 2015 was stronger than in November, surprising as December is a historically slow month. ADV at the three venues was 4.1 million contracts in November 2015, down 8% compared to both October 2015 and November 2014.

According to Options Clearing Corporation statistics, CBOE’s options market share fell from 28.35% in December 2014 to 23.26% in December 2015. BATS, ISE and Miami Exchange all saw increased market share year-on-year.

Chicago Mercantile Exchange (CME) also released its statistics for 2015, but revealed a much stronger performance in 2015 compared to 2014. A statement by the exchange operator said: “Trade volume averaged a record 13.9 million contracts per day, up 2% from 2014, and included year-over-year growth across five of six product lines.”

CME also set trading records during the year, with a record of nearly 2 million contracts per day in its energy derivatives, up 21% from 2014. Other 2015 records included an overall options average daily volume of 2.7 million contracts, up 7% from 2015.

In recent years, CME has consistently reported strong trading figures and expanded its operations into Europe.

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