Exchanges: Exchanges make the most of volatility

The world’s stock and futures exchanges have benefited handsomely from equity market uncertainty.

All the big equity cash and futures exchanges reported higher volumes as US sub-prime mortgage worries led to a spike in volatility. Trading in pure volatility products also surged, and the Chicago Board Options Exchange (CBOE) expanded its suite of volatility offerings.

The London Stock Exchange reports that in the five months to August 2007, the average daily numbers of bargains on its Sets electronic order book rose 75% to 551,000, clearing its target level of 480,000 for the full year.

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