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BOX Newsletter
4, February 17, 2004
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|
|
BOX
Completes First Week of Trading, Market Share at 4 Percent
|
After
over two years of work, BOX became the sixth and newest US equity
options exchange with the listing of first five options classes
(INTC, GE, ERICY, HON and AZN) for trading on Friday,
February 6, 2004. Following the success of the first day's trading,
an additional five classes (MSFT, IBM, EBAY,
QCOM and CSCO) were added the following Friday,
February 13.
Over
75 firms are already approved as BOX trading Participants. For
the full list as of February 13, click here.
|
BOX
Market Share
|
|
BOX
Lists 20 New Classes on February 17, 2004....
|
|
BOX's
overall market share in the symbols it was trading for each
of the first six days was as follows:
|
|
Classes
|
Calls
|
Puts
|
Total
|
Share
|
| Feb
6 |
5
|
2,607
|
1,826
|
4,433
|
4.1% |
| Feb
9 |
5
|
899
|
834
|
1,733
|
2.0% |
| Feb
10 |
5
|
1,770
|
803
|
2,573
|
2.4% |
| Feb
11 |
5
|
1,734
|
1,386
|
3,120
|
3.2% |
| Feb
12 |
5
|
2,459
|
1,510
|
3,969
|
3.6% |
| Feb
13 |
10
|
8,326
|
7,389
|
15,715
|
5.3% |
| Average |
|
|
|
|
3.9% |
|
|
Following
the successful launch of the BOX trading platform and trading
on the first ten classes, BOX will open trading on an additional
20 options class on the morning of February 17, 2004 (Tuesday).
The new classes are:
| AMGN |
BSX |
KO |
SLR
|
| AMZN |
DOX |
LU
|
TXN
|
| BAC |
EXTR |
MO
|
USG
|
| BHI |
JNJ |
MRK
|
WMB |
| BRCM |
KLAC |
NOK
|
XMSR |
|
...and
30 More on Monday, February 23
|
BOX
will continue to list new option classes each week until
the first 250 have been listed for trading; below is the
list for week three. For a complete list of the classes
BOX plans to list, click here.
| AIG |
F |
INTI |
NXTL |
SOHU |
| BA |
FNM |
JPM |
PFE |
UPS |
| BMY |
GENZ |
MER |
PG
|
VZ |
| C |
GPS |
MMM
|
OLGC
|
WFC |
| COF |
GS |
MWD
|
S
|
WMT |
| DUK |
HPQ |
NEM
|
SBC
|
XOM |
|
|
....By
Class
|
|
|
At
the end of BOX's first full week of trading, the BOX share
of overall OCC cleared volume in each of the ten classes
was as follows:
|
AZN:
20.4%
|
IBM:
11.3%
|
|
CSCO:
13.2%
|
HON:
6.5%
|
|
EBAY:
9.6%
|
INTC:
2.1%
|
|
ERICY:
2.7%
|
MSFT:
2.5%
|
|
GE:
4.0%
|
QCOM:
3.9%
|
|
|
|
| For
a view of how the PIP works, click here
to transfer to a demo on the BOX website (select the choice "PIP
Demo" on the menu at the right on the website page). |
|
|
|
Boston
Options Exchange Highlights & Advantages
|
|
|
Fully
Automated - Fully electronic equity options exchange.
|
|
|
Low
Entry Costs - No seats to buy or rent.
|
|
Price
and Time Priority - orders will be handled on a strict
price/time priority without a specialist controlling the price.
There is no wheel for "allocating" trades that disincents
competition.
|
|
|
Price
Improvement Auctions – BOX includes a unique electronic
mini-auction that will attract, subject to price improvement,
orders that would otherwise be printed elsewhere at the NBBO.
|
|
Multiple,
Competing Market Makers - BOX places no limits on the
number of market makers who may continuously quote on a given
options class. They compete equally on a price and time basis.
|
|
|
Anonymous
- BOX does not provide information on broker identification
when an order is displayed in the order book. Furthermore,
BOX does not provide counterparty identification for trade
executions. This anonymity encourages competition, rather
than the "herd mentality" which discourages price
competition at some exchanges.
|
|
Simple
Cost Structure - traders only pay when they trade, there
are no annual fees. No trade execution fees for public customer
orders.
|
|
|
Transparent
- Order book broadcasting five best price limits allows
traders to see market depth.
|
|
Open
Architecture – Each trader may connect whatever trading
system he wishes.
|
|
|
Equal
Treatment of Orders - BOX does not discriminate order
priority on the basis of the type of account. All orders on
the BOX book are available to all traders on a first come,
first served basis with no limitation on professional order
executions.
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