Cboe Global Markets Reports Trading Volume for March 2024
- Positive: Cboe Global Markets reported trading volume statistics for March 2024, showing increases in index options and Canadian equities trading volumes.
- Positive: The company achieved a record-setting block trade in Cboe iBoxx iShares $ High Yield Corporate Bond Index Futures, representing $75 million.
- Positive: Cboe Japan achieved a new monthly lit market share record of 5.3% in March 2024.
- Positive: The PR provided guidance on RPC/net capture metrics for the first quarter of 2024, giving insights into projected revenues.
- Positive: The data sheet 'Cboe Global Markets Monthly Volume & RPC/Net Revenue Capture Report' offers a comprehensive overview of March trading statistics and market share.
- Negative: Cboe Clear Europe Cleared Trades saw a significant decrease of 27.4% in March 2024 compared to the previous year.
- Negative: European Equities trading volumes declined by 16.7% in March 2024 compared to the previous year.
- Negative: Cboe Clear Europe Net Settlements decreased by 14.7% in March 2024 compared to the previous year.
- Negative: The projected RPC/net capture metrics for the first quarter of 2024 are preliminary and subject to change, with no assurance of final results matching the projections.
- None.
Insights
The reported trading volume statistics and revenue per contract/net revenue capture guidance from Cboe Global Markets offer valuable insights into the exchange's performance and the broader financial market's health. A Market Research Analyst would highlight that the decrease in multiply-listed options and futures contracts suggests a potential cooling in derivatives trading activity. However, the increase in index options trading volume year-over-year indicates a growing interest in this segment, potentially reflecting investors' appetite for risk management tools amid market volatility.
Moreover, the mixed performance in global equities trading volumes—with Japanese equities showing strong growth and European equities experiencing a decline—may indicate regional economic trends and investor sentiment shifts. The analyst would also note the record-setting block trade in IBHY Futures as a sign of institutional engagement and the new record in Japanese equities market share as a testament to Cboe Japan's growing presence in the region.
From a financial perspective, the Financial Analyst would focus on the revenue capture and RPC guidance provided by Cboe. The slight variations in RPC for different products reflect changes in transaction mix, volume-based discounts and fee rate adjustments. For instance, the increase in RPC for index options compared to multiply-listed options could indicate a more profitable mix or better pricing power in the index options market. The analyst would consider the impact of these figures on Cboe's revenue and margins, as well as on investor costs.
Additionally, the analyst would assess the implications of the off-exchange equities' net capture trends, which might influence the strategic decisions of market participants regarding where to execute trades. The analyst would also evaluate the long-term sustainability of these revenue trends, considering competitive pressures and potential regulatory changes affecting market structure and fees.
An Economist would interpret the data within the context of the broader economy, noting that trading volumes can serve as an economic indicator. The significant increase in Japanese equities volume, for example, could be seen as a sign of economic optimism or increased foreign investment in Japan. Conversely, the decline in European equities volume might reflect economic headwinds in the region or investor caution.
The economist would also consider the implications of the overall decrease in trading volumes on liquidity and market efficiency. They might analyze the potential economic consequences of shifts in trading activity, such as the impact on capital allocation, market stability and the cost of capital for companies. Furthermore, the economist would likely explore the relationship between Cboe's performance and global economic trends, including interest rates, currency fluctuations and international trade dynamics.
The data sheet "Cboe Global Markets Monthly Volume & RPC/Net Revenue Capture Report" contains an overview of certain March trading statistics and market share by business segment, volume in select index products, and RPC/net capture, which is reported on a one-month lag, across business lines.
Average Daily Trading Volume (ADV) by Month | Year-To-Date | |||||||
Mar 2024 | Mar 2023 | % Chg | Feb | % | Mar 2024 | Mar 2023 | % | |
Multiply-listed options (contracts, k) | 10,570 | 10,795 | -2.1 % | 11,114 | -4.9 % | 10,744 | 11,062 | -2.9 % |
Index options (contracts, k) | 4,057 | 3,867 | 4.9 % | 4,090 | -0.8 % | 4,089 | 3,595 | 13.7 % |
Futures (contracts, k) | 217.1 | 269 | -19.2 % | 213 | 1.8 % | 220 | 232 | -5.1 % |
1,464 | 1,629 | -10.1 % | 1,528 | -4.2 % | 1,510 | 1,501 | 0.6 % | |
75 | 89 | -16.1 % | 86 | -13.2 % | 77 | 89 | -13.8 % | |
Canadian Equities (matched shares, k) | 159,704 | 146,362 | 9.1 % | 143,922 | 11.0 % | 146,253 | 150,812 | -3.0 % |
European Equities (€, mn) | 10,248 | 12,301 | -16.7 % | 10,093 | 1.5 % | 9,918 | 11,383 | -12.9 % |
Cboe Clear Europe Cleared Trades1 (k) | 96,734 | 133,217 | -27.4 % | 98,689 | -2.0 % | 294,326 | 359,418 | -18.1 % |
Cboe Clear Europe Net Settlements1 (k) | 828 | 970 | -14.7 % | 825 | 0.3 % | 2,525 | 2,662 | -5.2 % |
Australian Equities (AUD, mn) | 814 | 805 | 1.2 % | 809 | 0.6 % | 765 | 755 | 1.4 % |
Japanese Equities (JPY, bn) | 357 | 189 | 89.3 % | 316 | 13.2 % | 316 | 183 | 72.4 % |
Global FX ADNV ($, mn) | 47,346 | 49,560 | -4.5 % | 43,628 | 8.5 % | 45,256 | 44,992 | 0.6 % |
1 Cboe Clear Europe figures are totals (not ADV) for the months and years-to-date. As of April 2023, data has been restated to reflect both On-Book and Off-Book cleared trades. |
March and First Quarter 2024 Trading Volume Highlights
US Options and Futures
- A record-setting block trade in Cboe iBoxx iShares $ High Yield Corporate Bond Index (IBHY) Futures, representing
$75 million
Cboe Japan
- Cboe Japan achieved a new monthly lit market share record of
5.3% , surpassing its last record set in February 2023.
First-Quarter 2024 RPC/Net Revenue Capture Guidance
The projected RPC/net capture metrics for the first quarter of 2024 are estimated, preliminary and may change. There can be no assurance that our final RPC for the three months ended March 31, 2024, will not differ materially from these projections.
(In USD unless stated otherwise) | Three-Months Ended | |||
Product: | 1Q Projection | Feb-24 | Jan-24 | Dec-23 |
Multiply-Listed Options (per contract) | ||||
Index Options | ||||
Total Options | ||||
Futures (per contract) | ||||
Canadian Equities (per 10,000 touched shares) | ||||
European Equities (per matched notional value) | 0.247 | 0.247 | 0.241 | 0.233 |
Australian Equities (per matched notional value) | 0.151 | 0.149 | 0.154 | 0.157 |
Japanese Equities (per matched notional value) | 0.227 | 0.278 | 0.266 | 0.252 |
Global FX (per | ||||
Cboe Clear Europe Fee per Trade Cleared | ||||
Cboe Clear Europe Net Fee per Settlement | ||||
The above represents average revenue per contract (RPC) or net capture is based on a three-month rolling average, reported on a one-month lag. Average transaction fees per contract can be affected by various factors, including exchange fee rates, volume-based discounts and transaction mix by contract type and product type.
- For Options and Futures, the average RPC represents total net transaction fees recognized for the period divided by total contracts traded during the period for options exchanges: BZX Options, Cboe Options, C2 Options and EDGX Options; futures include contracts traded on Cboe Futures Exchange, LLC (CFE).
- For
U.S. Equities, "net capture per 100 touched shares" refers to transaction fees less liquidity payments and routing and clearing costs divided by the product of one-hundredth ADV of touched shares on BZX, BYX, EDGX and EDGA and the number of trading days for the period. - For
U.S. Equities – Off-Exchange, "net capture per 100 touched shares" refers to transaction fees less OMS/EMS costs and clearing costs divided by the product of one-hundredth ADV of touched shares on BIDS Trading and the number of trading days for the period. - For Canadian Equities, "net capture per 10,000 touched shares" refers to transaction fees divided by the product of one-ten thousandth ADV of shares for MATCHNow and the number of trading days for the period and includes revenue from NEO (now operating as Cboe Canada).
- For European Equities, "net capture per matched notional value" refers to transaction fees less liquidity payments in British pounds divided by the product of ADNV in British pounds of shares matched on Cboe Europe Equities and the number of trading days.
- For Australian Equities, "net capture per matched notional value" refers to transaction fees less trading fee relief in Australian Dollars divided by the product of ADNV in Australian Dollars of shares matched on Cboe Australia and the number of trading days.
- For Japanese Equities, "net capture per matched notional value" refers to transaction fees less liquidity payments in Japanese Yen divided by the product of ADNV in Japanese Yen of shares matched on Cboe Japan and the number of trading days.
- For Global FX, "net capture per
one million dollars traded" refers to transaction fees less liquidity payments, if any, divided by the Spot and SEF products of one-thousandth of ADNV traded on the Cboe FX Markets and the number of trading days, divided by two, which represents the buyer and seller that are both charged on the transaction. - For Cboe Clear Europe, "Fee per Trade Cleared" refers to clearing fees divided by number of non-interoperable trades cleared and "Net Fee per Settlement" refers to settlement fees less direct costs incurred to settle divided by the number of settlements executed after netting.
About Cboe Global Markets
Cboe Global Markets (Cboe: CBOE), the world's leading derivatives and securities exchange network, delivers cutting-edge trading, clearing and investment solutions to people around the world. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives, FX, and digital assets, across
Cboe Media Contacts | Cboe Analyst Contact | |||
Angela Tu | Tim Cave | Kenneth Hill, CFA | ||
+1-646-856-8734 | +44 (0) 7593-506-719 | +1-312-786-7559 | ||
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SOURCE Cboe Global Markets, Inc.
FAQ
What were the average daily trading volume percentages changes for multiply-listed options in March 2024 compared to March 2023?
What record-setting trade did Cboe Global Markets achieve in March 2024?
Which segment achieved a new monthly lit market share record in March 2024?
What type of metrics were provided in the first quarter of 2024 RPC/net revenue capture guidance?
What was the percentage change in European Equities trading volumes in March 2024 compared to the previous year?
What is the significance of the projected RPC/net capture metrics for the first quarter of 2024?
