*CBOE stays No. 1 in total market share for January
*Nasdaq OMX slips to fourth spot from second last month
*ISE total market share for January is 22.9 pct
*ISE says div trades inflate, distort trading volume
(Recasts lead with market share of other exchanges)
CHICAGO/NEW YORK, Feb 1 Nasdaq OMX Group
(NDAQ.O) slipped from second to fourth spot in the heated
battle for U.S. options market share last month, while NYSE
Euronext NYX.N and the International Securities Exchange both
gained ground in the crowded options space.
The dominant Chicago Board Options Exchange was No. 1 with
29.6 percent of the fast-growing options market in January, but
market share was down from 31.2 percent in December and 32.4
percent in January 2009, according to the Options Clearing
NYSE Euronext's two venues, AMEX and NYSE Arca options, had
a combined 25.8 percent, while the ISE, a unit of Deutsche
Boerse's (DB1Gn.DE) Eurex arm, stood at 22.9 percent, putting
them in the No. 2 and No. 3 spots, respectively, last month.
Nasdaq OMX, which runs the Nasdaq PHLX and NOM option
platforms, dropped to a combined 19.8 percent in January, from
23.7 percent in December.
ISE, whose options market share tumbled late last year,
said on Monday its market share rebounded in January from the
ISE accounted for 22.9 percent of overall options trading
last month, up sequentially from 20.3 percent in December, when
it slipped to fourth place among exchange operators.
ISE had previously long battled the CBOE for the top spot
in the hotly contested market. Its U.S. options market share in
January last year was 28.4 percent.
Ex-dividend strategies has inflated volume on rival
exchanges, ISE said.
ISE said if dividend trades were excluded from January 2010
data, its market share in U.S. equity options would be 25.6
percent compared to 24.4 percent, an increase of 1.2 market
"Exclusion of dividend trades from total industry volume
data presents a more relevant measure of the relative trends in
our business," the exchange said. "These trades temporarily
inflate and distort trading volume and market share when
Meanwhile, two more option platforms are expected to go
live this year, bringing the total to nine U.S. venues battling
for order flow.
BATS Global Markets, a U.S.-based market operator, said
last month it received U.S. regulatory approval to operate a
U.S. equity options platform which is expected to launch on
CBOE is also expected to roll out an electronic options
platform called C2 this year.
(Reporting by Jonathan Spicer and Doris Frankel in Chicago;
Editing by Diane Craft)