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

CBOE's futures and options volume was pointed lower in July, retreating after a strong previous month.

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 referendum in the UK and the subsequent aftermath presented an enormous swath of volatility 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.

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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.

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