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Trefis TeamTrefis Team , Contributor

NASDAQ‘s strong growth in equity options trading volumes continued in November, with around 144 million contracts traded in the U.S. market, about 12% more than the prior year period’s trading volumes, and 8% above the previous month. This was primarily due to a substantial gain in market share to over 41%, driven by the acquisition of ISE in 2016. Moreover, we believe the strengthening of the U.S. dollar and other macro factors contributed to increased volatility in the market, and consequently drove trading volumes.

NASDAQ generates around 18% of its revenues from this asset class. With significant growth in volumes over the past two months, we expect strong top line growth from this segment in the current quarter.

Cash Equity Volumes Under Pressure

After a slight improvement in the previous quarter, NASDAQ’s cash equity trading volumes remained under pressure in November, with around 25.3 billion shares traded in the U.S. market, in comparison to previous November’s 28.9 billion shares. We attribute that to the decline in the overall U.S. cash equity market. This will partially offset the revenue growth from the rise in equity options volumes. However, the volumes were slightly better in comparison to the previous month.

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