International Securities Exchange - ISE


DEFINITION of 'International Securities Exchange - ISE'

An electronic options exchange that was launched in 2000. The exchange provides investors with greater liquidity and the ability to execute transactions at a much faster rate than the open-cry trading floor that has historically been the basis for options trading. In addition to being an options exchange, the ISE is also a publicly traded company.

BREAKING DOWN 'International Securities Exchange - ISE'

The advent of the electronic options exchange was considered revolutionary. Computerized trading has proved extremely efficient, and has added to the liquidity in the options markets. This added liquidity has helped to reduce pricing volatility. Prior to electronic trading, investors looking to purchase or sell options relied solely on floor brokers to execute their trades.

  1. Liquidity

    The degree to which an asset or security can be quickly bought ...
  2. Derivative

    A security with a price that is dependent upon or derived from ...
  3. Option

    A financial derivative that represents a contract sold by one ...
  4. Exchange

    A marketplace in which securities, commodities, derivatives and ...
  5. Chicago Board Options Exchange ...

    Founded in 1973, the CBOE is an exchange that focuses on options ...
  6. Volatility

    1. A statistical measure of the dispersion of returns for a given ...
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