Volatility spikes, and MEMX Options hits new volume and market-share high
Apr 7, 2025
Surge in Volatility and MEMX Options Share
Highlights & Recent Developments
- Volatility spiked in March, bringing higher equity volumes and wider spreads
- The VIX volatility index increased 59% year-over-year in March to 21.9, its highest level over the past year
- Industry equity volume increased to 16 billion average daily shares in March, up 33% year-over-year
- MEMX retail participation was 98.8 million average daily shares, up 113% year-over-year
- Average daily contract volume on MEMX increased to 1.9 million, up 161% year-over-year
- MEMX Options hit new volume and market share records in March, with total market share at 3.7% and regular electronic market share at 6.5%
Equities Exchange Highlights
Market volatility increased in March due to macro concerns around a slowing economy and rising inflation. The VIX averaged 21.9 in March, its highest level over the past year. Industry equity volume increased to 16 billion average daily shares in March, up over 33% year-over-year.
Higher volatility in March contributed to lower liquidity and wider spreads, driving up trading costs for investors. For example, SPY’s average quoted spread in basis points reached a recent high of 0.45, up 127% year-over-year.
Retail trading has been active on MEMX in recent months. In March, MEMX retail participation was 98.8 million average daily shares, up 113% year-over-year.
Options Exchange Highlights
MEMX Options hit new volume and market share records in March, with average daily contracts increasing 161% year-over-year to 1.9 million.
MEMX Options total market share was 3.7% and regular electronic market share was 6.5%. This included new regular electronic market share records in QQQ (6.9%), TSLA (5.7%), AMZN (5.9%), among other underlyings.
1 Regular electronic market share includes continuous trading in single-leg options (excludes auctions, floor, and complex trades).