✃What Is the Intern✃ational Securities Exchange (ISE)?

The International Securities Exchange (ISE) is an electronic options exchange that was launched in 2000. The exchange provides investors with greater liquidity and the ability to execute transactions at a much faster rate than the open outcry trading floor that had historically been the basis for options trading. In 2008, the ISE became a wholly owned subsidiary of the communications company Direct Edge Holdings. In 2016, the ISE became a 澳洲幸运5官方开奖结果体彩网:wholly owned subsidiary of Nasdaq.

Understanding the International Securities𒅌 Exchange (ISE)

The advent of the International Securities Exchange (ISE) was considered revolutionary. Computerized trading has proven to be extremely efficient and has added to the 澳洲幸运5官方开奖结果体彩网:liquidity in the options markets. This a𝄹dded liquidity has helped to reduce pricing volatility. Prior to electronic trading, investors looking to purchase or sell options relied solely on floor brokers t꧅o execute their trades.

The ISE offers index and equity offerings—among them, proprietary index products and foreign currency exchange options. The ISE’s market data tools provide information on risk management, 澳洲幸运5官方开奖结果体彩网:investor sentiment, and other important data.

Milestones of the Inter𓂃national Securities Exchange (ISE)

The ISE was founded in 1997 and became the first electronic options exchange in the United States when the ISE began trading on May 26, 2000. In 2001, the ISE traded an average daily volume of 264,000 澳洲幸运5官方开奖结果体彩网:options contracts.

By 2004, the ISE's average daily trading volume grew to about 1.4 million options contracts, earning the exchange a 33.3% market share for U.S. equity options. In 2004, the ISE generated $125.4 million in total revenue and net income of $26.2 million. ISE sold shares in an 澳洲幸运5官方开奖结果体彩网:initial public offering (IPO) in March 2005.

By 2007, the ISE was trading an 澳洲幸运5官方开奖结果体彩网:average daily volume of approximately 3.1 million options contracts, making it the world's largest equity options exchange. In 2007, the U.S. options industry experienced an annual growth rate of 41.3%.

In 2007, the Deutsche Börse purchased the ISE. By September 2008, the ISE had set a new record for daily trading volume, selling more than 7.9 million options contracts per day. In 2008, ISE became a wholly owned subsidiary of Direct Edge Holdings. ISE was purchased by Nasdaq in 2016.

Purchase by Nasdaq

In March 2016, Nasdaq bought the ISE for $1.1 billion, purchasing it from Deutsche Börse of Germany. At the time, ISE exchanges represented over 15% of U.S. trading in stock and index options. The purchase of ISE allowed Nasdaq to take over ISE’s stake in the world’s biggest clearinghouse for equity derivatives, the Options Clearing Corporation, bringing Nasdaq’s holdings in the Options Clearing Corporation up to 40%.

Special Considerations

Nasdaq's ISE offers their clients options trading for more than 3,000 underlying equities, indexes, and 澳洲幸运5官方开奖结果体彩网:exchange traded funds (ETFs). Nasdaq membership is required to participate oꦺn the ISE exchange. Applicants must meet several requirements 🤪to be eligible for membership.

They must complete a Nasdaq broker-dealer membership form and be a registered U.S. broker-dealer. Applicants must be either a 澳洲幸运5🉐官方开奖结果体彩网:National S൲ecurities Clearing Corporation (NSCC) or 澳洲幸运5官方开奖结果体彩网:Options Clearing Corporation (OCC) direct clearing member, or prove a clearing relationship with an approved exchange clearing firm. Depending on the type of membership being sought, the applicant may have other requirements they must meet.

Members pay fees to the exchange for placing orders and other services. Fees can vary depending on the type of market participant. The Nasdaq options pricing schedule lists order fees for 澳洲幸运5官方开奖结果体彩网:market makers, non-Nasdaq ISE market makers, firm proprietary/broker-dealers, professional customers, and priority customers.