Derivatives Based on Russell Indexes Set Volume Records (Russell.com)

Derivatives Based on Russell Indexes Set Volume Records

TACOMA, Wash. — Derivatives contracts based on Russell indexes continued to trade at record levels during the month of October, particularly products offered by the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and Chicago Mercantile Exchange (CME). The monthly records include:

Trading volume in options on the iShares Russell 2000® (IWM) surpassed 4 million in October, reaching 4,423,465 and surpassing the previous record of 2.7 million set in August 2005 by 62%. The trading volume has surged more than 500% from 699,328 contracts in October 2004.

The number of IWM index options traded on the International Securities Exchange (ISE) reached 1,078,584 in October, surpassing the one-million mark on the exchange for the first time. The volume in October was more than double the previous ISE monthly volume record of 534,427 set in April 2004. The volume for index options based on Russell indexes set a single month record on the ISE as well, reaching 1,212,810.

"The fact that monthly volume has exceeded the 1 million contract barrier less than a year after the launch of Russell-based options on ISE underpins the growing significance of these products in the marketplace," said Bruce Goldberg, ISE's senior vice president and chief marketing officer. "We believe that both investors and the market have definitely benefited from accessing our highly liquid, electronic market to trade options products based on these leading stock indexes, and, importantly the demonstrated volume of an open and competitive marketplace."

Volume in IWM options on the Chicago Board Options Exchange (CBOE) was 2,672,277. This record marks the first time any exchange traded more than 2 million contracts during a month.
Russell 2000® Index (RUT) options set a monthly record with 208,960 contracts traded, topping 200,000 for the first time in a month and increasing more than 25% from the previous record of 167,294 set in August 2005.
E-mini Russell 2000® futures volume on theChicago Mercantile Exchange (CME) hit a record 3,233,798 contracts traded. The previous high was 2,858,660 set in April 2005.
Volume in options on E-mini Russell 2000® futures reached a new high on the CME with 27,927 contracts traded during the month. The previous record was 20,049 contracts set in August 2005.

"We have seen a significant increase in the exposure of Russell indexes this year to an expanded base of market participants on a wider range of exchanges," said Kelly Haughton, strategic director of Russell Indexes. "The growing acceptance of Russell indexes as the most accurate picture of the US equity market has led to record growth in both volume and liquidity."

Options products based on Russell indexes are available on the CBOE, American Stock Exchange (Amex), Boston Options Exchange (BOX), Philadelphia Stock Exchange (Phlx), Pacific Exchange (PCX) and the ISE. In addition, futures products based on Russell indexes are traded on the CBOE Futures Exchange (CFE) and Eurex US, while futures, as well as options on futures, are traded at the Chicago Mercantile Exchange (CME) and the New York Board of Trade (NYBOT).

Additional details on Russell's indexes are available at: www.russell.com/Indexes

About Russell
Russell Investment Group, a global leader in multi-manager investing, provides investment products and services in more than 39 countries. Russell manages more than $148 billion in assets and advises clients worldwide representing more than $2.3 trillion. Founded in 1936, Russell is a subsidiary of Northwestern Mutual and is headquartered in Tacoma, Wash., with additional offices in New York, Toronto, London, Paris, Sydney, Singapore, Auckland and Tokyo.

Russell employs its indexes to objectively evaluate investment managers for multi-manager funds and other investment services. More than $2.5 trillion in assets are benchmarked to Russell indexes.

Contact:
Bill Ferri, Intermarket Communications, 212-754-5428
Steve Claiborne, Russell, 253-594-1858

Russell is known for its investment management, consulting and portfolio transition management expertise worldwide but investors should also be aware of the many exchange-traded products based on Russell's U.S. equity index family. These products are not distributed by Russell. You may find more information and purchasing capability via the various exchanges which sell them.

ETFs, like any investment, have risks. You should carefully consider these risks before investing. Nothing herein constitutes or should be construed as investment advice. You should consult your own financial advisor with respect to your own situation or that of any entity which you represent or advise.

This is not an offer to sell, solicit or recommend the purchase of any service or product.

Russell Investment Group is a registered trade name of Frank Russell Company, a Washington, USA corporation, which operates through subsidiaries worldwide. Frank Russell Company is a subsidiary of The Northwestern Mutual Life Insurance Company.

Frank Russell Company is the owner of the trademarks, service marks and copyrights related to its indexes.

Russell's indexes are unmanaged and cannot be invested in directly.

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