Derivatives contracts based on Russell indexes traded at record-breaking levels in the month of August.
Overall trading volume hit monthly volume records for iShares Russell 2000 (IWM) options, iShares Russell 2000 Value (IWN) options, Russell 2000 Index (RUT) options and E-mini Russell 2000 Index options on futures.
Trading volume for options on the iShares Russell 2000 surpassed 2.7 million in August, topping the previous high of 2.2 million in July. The volume has nearly quadrupled from the amount traded in August 2004.
Volume in iShares Russell 2000 Value options increased to 76,436, more than doubling the 36,446 traded in July and up dramatically from the 10,636 in August 2004.
The number of Russell 2000 Index options contracts that traded in August surged to 167,294 and nearly doubled the 84,227 contracts in August 2004.
Volume in E-mini Russell 2000 Index options on futures surpassed 20,000 in August, an increase of about 40% from 12,780 in July.
“These record trading volumes in August tell us more investors are opting for Russell’s clear, unbiased index methodology,” said Kelly Haughton, strategic director of Russell Indexes. “More investors in hedge funds and other alternatives in particular are using Russell-based options in their portfolio strategies.”
The number of derivatives products based on Russell indexes also increased, including the launch of two new exchange-traded funds (ETFs) and the options based on them: iShares Russell Microcap(tm) Index ETF, which trades under the symbol IWC, and Rydex Russell Top 50(tm) Index ETF, which trades under the symbol XLG.
“In August we added the iShares Russell Microcap Index to the list of more than 23 Russell products traded at the Chicago Board Options Exchange and CBOE Futures Exchange,” said CBOE Chairman and CEO William J. Brodsky. “The Russell products traded at CBOE have seen explosive growth this year, and we expect that trend to continue as investors become more familiar with the products.”