ISE Reports Record Monthly Volume for May 2007

  
    
  
  
    
      The International Securities Exchange (NYSE:ISE) today reported that 
      average daily trading volume for equity and index options contracts for 
      May 2007 increased 14.1% to 3.0 million contracts as compared to 2.6 
      million contracts during the same period in 2006. Total equity and index 
      options volume for the month increased 14.1% to 66.1 million contracts 
      from 57.9 million contracts in the same year-ago period.
    
    
      On a year-to-date basis, average daily trading volume of equity and 
      index options increased 15.5% to 2.8 million contracts traded as 
      compared to 2.4 million contracts traded in the prior year. Total 
      year-to-date equity and index volume through May 2007 increased 15.5% to 
      289.9 million contracts from 250.9 million contracts in the same period 
      last year.
    
    
      
        
          Equity and Index Options Volume Statistics
        
      
      
        
        
        
          Current Month
        
        
          Year-to-Date
        
      
      
        
          (000s)
        
        
          May-07
        
        
          May-06
        
        
          % Change 
        
        
          May-07
        
        
          May-06
        
        
          % Change 
        
      
      
        
          ISE Average Daily Volume
        
        
          3,004.1 
        
        
          2,632.1 
        
        
          14.1%
        
        
          2,814.4 
        
        
          2,436.2 
        
        
          15.5%
        
      
      
        
          ISE Total Volume
        
        
          66,091.2 
        
        
          57,906.6 
        
        
          14.1%
        
        
          289,879.5 
        
        
          250,932.5 
        
        
          15.5%
        
      
      
        
          Industry Average Daily Volume
        
        
          10,419.4 
        
        
          9,077.9 
        
        
          14.8%
        
        
          10,053.7 
        
        
          8,125.3 
        
        
          23.7%
        
      
      
        
          Market Share
        
        
          28.8%
        
        
          29.0%
        
        
          (0.2) pts
        
        
          28.0%
        
        
          30.0%
        
        
          (2.0) pts
        
      
      
        
          Market Share: Customer
        
        
          30.1%
        
        
          28.9%
        
        
          1.2 pts
        
        
          29.5%
        
        
          31.1%
        
        
          (1.6) pts
        
      
      
        
          Market Share: Firm
        
        
          27.7%
        
        
          27.2%
        
        
          0.5 pts
        
        
          24.8%
        
        
          25.7%
        
        
          (0.9) pts
        
      
      
        
          Market Share: Market Maker
        
        
          28.1%
        
        
          29.6%
        
        
          (1.5) pts
        
        
          27.8%
        
        
          30.3%
        
        
          (2.5) pts
        
      
    
    
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Equity Options Volume Statistics
        
      
      
        
        
        
          Current Month
        
        
          Year-to-Date
        
      
      
        
          (000s)
        
        
          May-07
        
        
          May-06
        
        
          % Change 
        
        
          May-07
        
        
          May-06
        
        
          % Change 
        
      
      
        
          ISE Average Daily Volume
        
        
          2,955.0 
        
        
          2,589.0 
        
        
          14.1%
        
        
          2,769.7 
        
        
          2,405.7 
        
        
          15.1%
        
      
      
        
          ISE Total Volume
        
        
          65,009.5 
        
        
          56,958.5 
        
        
          14.1%
        
        
          285,277.9 
        
        
          247,784.6 
        
        
          15.1%
        
      
      
        
          Industry Average Daily Volume
        
        
          9,412.0 
        
        
          8,137.7 
        
        
          15.7%
        
        
          9,088.8 
        
        
          7,429.3 
        
        
          22.3%
        
      
      
        
          Market Share
        
        
          31.4%
        
        
          31.8%
        
        
          (0.4) pts
        
        
          30.5%
        
        
          32.4%
        
        
          (1.9) pts
        
      
      
        
          Market Share: Customer
        
        
          32.7%
        
        
          31.4%
        
        
          1.3 pts
        
        
          32.1%
        
        
          33.3%
        
        
          (1.2) pts
        
      
      
        
          Market Share: Firm
        
        
          30.6%
        
        
          30.6%
        
        
          0 pts
        
        
          27.3%
        
        
          28.6%
        
        
          (1.3) pts
        
      
      
        
          Market Share: Market Maker
        
        
          30.5%
        
        
          32.6%
        
        
          (2.1) pts
        
        
          30.1%
        
        
          32.7%
        
        
          (2.6) pts
        
      
    
    
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Index Options Volume Statistics
        
      
      
        
        
        
          Current Month
        
        
          Year-to-Date
        
      
      
        
          (000s)
        
        
          May-07
        
        
          May-06
        
        
          % Change 
        
        
          May-07
        
        
          May-06
        
        
          % Change 
        
      
      
        
          ISE Average Daily Volume
        
        
          49.2 
        
        
          43.1 
        
        
          14.1%
        
        
          44.7 
        
        
          30.6 
        
        
          46.2%
        
      
      
        
          ISE Total Volume
        
        
          1,081.7 
        
        
          948.1 
        
        
          14.1%
        
        
          4,601.5 
        
        
          3,147.9 
        
        
          46.2%
        
      
      
        
          Industry Average Daily Volume
        
        
          1,007.2 
        
        
          939.5 
        
        
          7.2%
        
        
          964.4 
        
        
          695.4 
        
        
          38.7%
        
      
      
        
          Market Share
        
        
          4.9%
        
        
          4.6%
        
        
          0.3 pts
        
        
          4.6%
        
        
          4.4%
        
        
          0.2 pts
        
      
    
    
      Dividend Trade Activity
    
    
      Our market share statistics continue to be negatively impacted by 
      trading activity related to dividend trades among certain options market 
      makers. These trades temporarily inflate and distort trading volume and 
      market share when transacted. If the volume from the largest dividend 
      trades were excluded from the data, our market share of equity options 
      for the month of May would increase to 32.2% from 31.4%, an increase of 
      0.8 market share points.
    
    
      On a year-to-date basis, our market share would increase to 31.5% from 
      30.5%, an increase of 1.0 market share point, if the volume from the 
      largest dividend trades were excluded. The exclusion of dividend trades 
      from total industry volume data presents a more relevant measure of the 
      relative trends in our business.
    
    
      Monthly Highlights
    
    
      
        Average daily volume of equity and index options contracts surpassed 
        the 3 million mark for the first time in ISE’s 
        history.
      
      
        ISE was the largest U.S. equity options exchange in May.
      
      
        On May 8, 2007, ISE announced the addition of four new board members. 
        Joseph Stefanelli and Kenneth Vecchione joined the Board of Directors 
        of International Securities Exchange Holdings, Inc. and International 
        Securities Exchange, LLC (ISE LLC). Leonard Ellis and Randy Frederick 
        joined the ISE LLC Board as representatives of ISE LLC's Competitive 
        Market Makers (CMMs) and Electronic Access Members (EAMs), 
        respectively. The new board members are replacing Ivers Riley, Mark 
        Kritzman, James Harkness and William Porter, who are retiring from 
        their respective Boards due to term limits.
      
      
        On May 8, 2007, ISE’s Board of Directors 
        declared a quarterly dividend of $0.05 per outstanding share of Class 
        A Common Stock. The dividend is payable on June 29, 2007 to holders of 
        record as of the close of business on June 22, 2007.
      
      
        On May 10, 2007, ISE announced that its Board of Directors elected two 
        new officers. Thomas Reina was appointed as Technology Development 
        Officer and John Ryan as Technology Architecture Officer.
      
      
        On May 18, 2007, ISE co-sponsored the NYU conference “Derivatives 
        2007: New Ideas, New Instruments, New Markets” 
        where leading academics and industry practitioners examined the links 
        between modern derivatives theory and market practice.
      
      
        ISE traded more volume than any other options exchange in 941 of 1,735 
        issues in its listings.
      
    
    
      ISE Background
    
    
      International Securities Exchange Holdings, Inc. (NYSE: ISE), through 
      its subsidiaries, operates a family of innovative securities markets. 
      ISE is founded on the principle that technology and competition create 
      better, more efficient markets for investors and consists of an options 
      exchange, a stock exchange and an alternative markets platform. ISE 
      continually enhances its trading systems and develops new products to 
      provide investors with the best marketplace and investment tools to 
      trade smarter.
    
    
      ISE developed a unique market structure for advanced screen-based 
      trading systems and in May 2000 launched the first fully electronic US 
      options exchange. Currently, ISE operates the largest U.S. equity 
      options exchange and is among the leading options exchanges in the 
      world. ISE offers index options, including a portfolio of proprietary 
      index products, and enhanced market data products for sophisticated 
      investors. ISE FX Options™ launched in the 
      second quarter of 2007.
    
    
      ISE Stock Exchange, launched in September 2006 with strategic partners, 
      includes an innovative MidPoint Match™ 
      platform which offers investors continuous price improvement. MidPoint 
      Match was integrated with a fully displayed Best Bid Offer market in the 
      fourth quarter of 2006.
    
    
      ISE’s alternative markets business currently 
      consists of an events market trading platform known as Longitude. 
      Longitude’s patented and proprietary 
      technology provides a unique parimutuel structure for derivatives 
      auctions which results in greater trading and pricing flexibility for 
      market participants.
    
    
      For more information about ISE and its options exchange, visit www.iseoptions.com 
      and for more information about ISE Stock Exchange, visit www.isestock.com. 
      Additionally, to learn more about ISE alternative markets technology, 
      visit www.longitude.com.