Nasdaq Led all Exchanges in 2020 Equity Options Trading

Rhea-AI Summary

Nasdaq announced that it led all exchanges in total equity options trading volume for 2020, marking its 11th consecutive year at the forefront. With 365 million trades and 2.58 billion contracts processed, this represented a 52% increase over 2019, making it the most active year since options became tradeable in 1973. The spike in options trading was largely attributed to volatility surrounding the U.S. elections and COVID-19, which increased retail participation. Nasdaq's technology enhanced price discovery and risk transfer for investors.

Positive

• Led all exchanges in 2020 options trading volume.
• 365 million trades and 2.58 billion contracts processed, a 52% annual increase.
• Record-setting year for options trading since inception.

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• None.

Nasdaq-listed companies fuel investor demand for options trading

NEW YORK, Jan. 06, 2021 (GLOBE NEWSWIRE) -- Nasdaq (Nasdaq: NDAQ) announced today that 2020 was the first year it led all exchanges in total volume traded for equity options across all categories, including proprietary single-exchange-listed options products. It was also the 11^th consecutive year Nasdaq led all exchanges in trading of multiple-listed equity options contracts.

In 2020, Nasdaq’s options markets processed 365 million trades and 2.58 billion contracts. These record numbers, combined with handling more than 8.88 trillion messages, made 2020 the most active year of options trading since options were introduced as tradeable products in 1973, and marked a 52% volume increase over 2019.

“The modern day industrials in the Nasdaq-100 continued to drive the global economy during a uniquely challenging year, and options gave investors another way to express their interest in these great companies,” said Greg Ferrari, Vice President and Head of Nasdaq Options. “The increase in options trading demonstrated to all market participants how Nasdaq technology enhances the price discovery and risk transfer process to meet their investment objectives.”

According to Nasdaq research, elevated volatility and uncertainty surrounding the U.S. election and COVID-19 fueled record levels of retail participation in the U.S. markets last year. Retail options strategies such as stock replacement, yield enhancement, and portfolio protection were widely used during market fluctuations.

This expansion was led by a sharp increase in shorter-term options contracts, a market-wide focus on retail expansion and customer education, along with the stock splits of Apple (Nasdaq: AAPL) and Tesla (Nasdaq: TSLA), two components of Nasdaq-100 (NDX), Nasdaq’s flagship index that gained in value by more than 40% last year. 

About Nasdaq:

Nasdaq (Nasdaq: NDAQ) is a global technology company serving the capital markets and other industries. Our diverse offering of data, analytics, software and services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions and career opportunities, visit us on LinkedIn, on Twitter @Nasdaq, or at www.nasdaq.com.

Media Relations Contact:
Joe Christinat
(646) 441-5121
(646) 284-5920
joseph.christinat@nasdaq.com

-NDAQG-

FAQ

What was Nasdaq's total equity options trading volume in 2020?

Nasdaq processed 365 million trades and 2.58 billion contracts in total equity options trading volume.

How much did options trading increase in 2020 compared to 2019?

Options trading volume increased by 52% in 2020 compared to 2019.

How many consecutive years has Nasdaq led in options trading?

Nasdaq has led all exchanges in options trading for 11 consecutive years.

What factors contributed to the rise in options trading in 2020?

Elevated volatility from the U.S. election and COVID-19 significantly increased retail participation in options trading.

What technological advantages did Nasdaq offer to investors in 2020?

Nasdaq's technology enhanced price discovery and risk transfer processes for investors.