ISE Electronic Trading Index

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The cash-settled ISE Electronic Trading Index (DMA) establishes a benchmark for a specialty sector within financial services. The stocks comprising the index include electronic brokers, market makers, educational firms, exchanges, and other marketplaces deemed to be most closely associated with electronic trading in the U.S. This is a proprietary index option for ISE.

With 17 underlying stocks in the index,[1] it uses a modified market capitalization-weighted methodology to create a more uniform weight distribution. This prevents a few large component stocks from dominating the index but still promotes portfolio diversification by retaining the economic attributes of capitalization ranking. Semi-annual reviews and rebalancing events are used to “re-set” the weighting of each component such that each component has a proportionate influence on the index performance.

As of Nov. 1, 2007, there are 31 ISE index options listed.

Contract Overview

Full specifications can be found at the ISE web site.[1]


Trading hours: 9:30 A.M. - 4:15 P.M. Eastern Time (New York time)
Expiration months Up to four near-term months followed by one additional month from the March quarterly cycle (March, June, September and December).
Strike price intervals At least $2.50
Minimum trading increments The minimum trading increment for an options contract trading at less than $3.00 is $0.05. The minimum trading increment for an options contract trading at $3.00 or higher is $0.10.

References

  1. 1.0 1.1 Product Details. International Securities Exchange.