Nasdaq OMX grabs bigger slice of US options market

* Nasdaq captured record 32.7 pct options share in Dec

* Rivals say dividend trades inflate Nasdaq’s mkt share

CHICAGO, Jan 3 (BestGrowthStock) – Nasdaq OMX Group (NDAQ.O: )
handled nearly a third of all U.S. options trading in December,
giving the exchange operator its biggest slice yet of a
fast-growing market.

Nasdaq PHLX and its sister platform NOM accounted for 32.7
percent of all stock- and stock-index-options trades in
December, figures from the Options Clearing Corp showed.
Overall, trading at the nine U.S. options exchanges rose about
16 percent to a daily average of 15.5 million contracts.

But much of the trading on Nasdaq’s PHLX venue comes from a
specialized trading strategy linked to bets on stock dividends
that rivals say distort the overall market.

The International Securities Exchange, owned by Deutsche
Boerse’s (DB1Gn.DE: ) futures exchange Eurex, estimated that over
40 percent of trading at PHLX was from such trades, “which
inflate and distort trading volume and market share,” ISE said
in a statement.

Based on OCC figures, which include the trades in question,
ISE ranked No. 4 in U.S. options trading, behind Nasdaq, CBOE
Holdings Inc (CBOE.O: ) and NYSE Euronext (NYX.N: ), in that
order.

But both CBOE and ISE said their true share of the market
is much higher if the dividend trades are excluded, and both
argue that they should be. PHLX caps fees on the trades, so
they are much less profitable than other trading volume.

Trading at CBOE in December sank 6.6 percent from a year
earlier; at ISE, trading fell 6.4 percent. Trading at PHLX
jumped 55 percent, OCC figures show.
(Reporting by Ann Saphir; Editing by Tim Dobbyn)

Nasdaq OMX grabs bigger slice of US options market