CBOE’s July Volumes See Across-the-Board Pullback as Volatility Fades

The Chicago Board Options Exchange Holdings (CBOE, NASDAQ: CBOE), one of the largest operators of the US equity options market, has reported its trading volumes for the month ending July 2016, which was underpinned by a pullback MoM after last month’s strong performance, according to a CBOE statement.

The latest figures follow last month’s staunch rise in trading volumes – the run up to the Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term referendum in the UK and the subsequent aftermath presented an enormous swath of Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term that has since abated as a summer lull has set in. During July 2016, CBOE Holdings reported a total trading volume for options contracts on Chicago Board Options Exchange, C2 Options Exchange, and futures contracts on CBOE Futures Exchange of 94.4 million, falling -11.5% MoM from 106.5 million contracts in June 2016.

The exchange also yielded an average daily volume (ADV) of 4.7 million contracts per day, which was lower by a factor of -9.6% MoM from 5.2 million contracts per day in June 2016. Across a yearly timetable, CBOE’s total volumes also dwindled by a smaller margin of -2.0% YoY from July 2015. July 2016 had a total of 20 trading days compared to 22 in June 2015.

CBOE Volumes

Across its options business, CBOE’s ADV was reported at 4.5 million contracts in July 2016, lower by approximately -7.0% MoM from 4.9 million contracts set back in June 2016, as well as a -2.0% YoY slide from 4.6 million contracts in July 2015.

C2 Option Exchange

Taking a look at C2 Option Exchange’s volumes, July 2016 trading volume was also pointed lower, coming in at just 6.6 million contracts, falling MoM by roughly -4.3% from 6.9 million contracts in June 2016. When measured against its 2015 equivalent however, the latest numbers were more magnified, incurring a -13.0% YoY decline from 7.6 million contracts in July 2015. Finally, ADV was reported at 329,900 contracts in July 2016, a growth of 4.6% MoM from 314,600 contracts in June 2016.