Derivatives contracts and exchange traded funds (ETFs) based on Russell indexes traded at record volumes in 2005, particularly those products offered by the Philadelphia Stock Exchange (PHLX) and the Chicago Mercantile Exchange (CME).
In all, total volume in Russell-based derivatives products reached a record high as 60,269,828 contracts traded in 2005, up more than 120% from a volume of about 27 million in 2004.
In addition, 5.8 billion Russell ETFs were listed during the year on the American Stock Exchange (AMEX), increasing 144% from 2004. The iShare Russell 2000* ETF led the pack in terms of trading volume with 4,773,185,700 contracts traded.
Futures volume in contracts based on Russell indexes set a record in 2005 with 31,095,335 contracts traded, 74% higher than 2004. Volume in E-mini Russell 2000 futures reached 29,650,828, including 28,902,033 on the CME alone.
Trading volume in options on Russell ETFs reached 26,892,225 in 2005 with volume in options on the iShare Russell 2000 totaling 25,810,874, a 230% from the 2004 volume of 8,147,804.
Total volume in options on Russell indexes hit 1,927,526 in 2005, increasing 111 percent from 2004 with 1,523,349 options contracts on the Russell 2000* Index being traded. In December, volume in options on Russell indexes reached a new high with 253,540 contracts traded. Options on the Russell 2000 alone saw record volume in December with 232,540 contracts traded.
“Russell indexes are providing investors with passive investment products that can more accurately track the various sectors of our diverse and dynamic marketplace – from large-cap to small-cap, growth and value, and everything in between,” said Kelly Haughton, strategic director of Russell Indexes.