By Doug Cameron
The International Securities Exchange outlined plans on Monday
to launch a second U.S. options trading platform by the end of the
year, despite the slide in overall market volume.
Rivals in the fiercely competitive U.S. options market have
moved ahead with multiple platforms to lure new customers, while
ISE's own plan was delayed while parent Deutsche Boerse AG (DB1.XE)
pursued its unsuccessful effort to merge with NYSE Euronext.
ISE didn't detail the products or pricing plans for the
yet-to-be-named platform as it made a formal license application to
U.S. regulators.
"It is a very high priority at the ISE to get this done," Chief
Executive Gary Katz said in an April interview.
Volume across the U.S. options sector fell 12% in June, the
Options Clearing Corp. said Monday, taking the year-to-date decline
to 6%. ISE said its own volume fell 10.2% in June, though it
remained the second-largest platform with a market share of 18.1%,
excluding divided trades.
Market leader CBOE Holdings Inc. (CBOE) and NYSE Euronext (NYX)
each run two U.S. options exchanges, while Nasdaq OMX Group Inc.
(NDAQ) is adding a third.
Write to Doug Cameron at doug.cameron@dowjones.com