Takeaway: Cash equities and options trading produced a strong first week in 2Q18, coming in ahead of the 2Q17 ADV by +5% and +7%, respectively.

Weekly Activity Wrap Up

  • Investors trading cash equities put up an average daily volume (ADV) of 7.2 billion shares in the 4-day period from March 30 - April 05, registering above the ADV for 2Q17.
  • Futures trading measured an average of 21.0 million contracts traded per day this week, comparing negatively against the ADV for the year-ago quarter.
  • Lastly, options trading posted an ADV of 17.8 million contracts last week, moving past the ADV for the same quarter one year ago.  

On a quarter-to-date basis, cash equities trading (+5%) is comping up while options activity (+7%) is stronger and futures trading (-7%) is lower in 2Q18 Y/Y.

HEDGEYE EXCHANGE TRACKER | CASH EQUITIES AND OPTIONS TRADING START 2Q18 ON A POSITIVE NOTE - 1

U.S. Cash Equity Detail

U.S. cash equities trading came in at 7.2 billion shares per day this week, bringing the 2Q18TD ADV to 7.2 billion, +5% greater than the year-ago quarter. In the battle among exchanges, the New York Stock Exchange/ICE is taking a 21% share of second-quarter volume, which is -137 bps lower than the year-ago quarter. NASDAQ is taking a 20% share, +141 bps greater than one year ago. Finally, BATS' 21% share is +145 bps greater Y/Y.

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U.S. Options Detail

U.S. options activity registered an ADV of 17.8 million this week, bringing the 2Q18TD ADV to 17.8 million, +7% greater than the year-ago quarter. In the market share battle among venues, BATS' 11% share is -70 bps lower than the year-ago quarter. Additionally, CBOE's 30% market share of 2Q18 is up +06 bps Y/Y, and NASDAQ's 24% share is -12 bps lower than in 2Q17. Meanwhile, NYSE/ICE's 16% share is +218 bps greater, and ISE/Deutsche's 12% share is down -104 bps. 

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U.S. Futures Detail

CME put up volume of 16.9 million futures contracts per day this week, bringing the 2Q18TD ADV to 16.9 million, +3% higher than the 2Q17 ADV. CME open interest, the most important beacon of forward activity, currently sits at 128.4 million CME contracts pending, good for +11% growth versus the same date one year ago. 

Contracts traded through ICE came in at 4.1 million per day this week, bringing the 2Q18TD ADV to 4.1 million, -34% lower than 2Q17. ICE open interest this week tallied 66.4 million contracts, -5%, lower versus the same date one year ago.

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Monthly Historical View

Monthly activity levels give a broader perspective of exchange based trends. As volatility levels, measured by the VIX, MOVE, and FX Vol, should rise to normal levels after the drastic compression this cycle, we expect all marketplaces to experience higher activity levels.

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HEDGEYE EXCHANGE TRACKER | CASH EQUITIES AND OPTIONS TRADING START 2Q18 ON A POSITIVE NOTE - 11

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Please let us know of any questions,

Jonathan Casteleyn, CFA, CMT 

 

 

Joshua Steiner, CFA