Welcome to our dedicated page for Cboe Global Markets news (Ticker: CBOE), a resource for investors and traders seeking the latest updates and insights on Cboe Global Markets stock.
Cboe Global Markets, Inc. (CBOE: CBOE | NASDAQ: CBOE) stands as one of the world's largest exchange holding companies. Cboe delivers advanced trading, clearing, and investment solutions to investors globally, committed to relentless innovation and connecting global markets with world-class technology. The company provides diverse trading products across multiple asset classes and geographies, including options, futures, U.S. and European equities, exchange-traded products (ETPs), global foreign exchange (FX), and multi-asset volatility products based on its renowned Cboe Volatility Index (VIX), the global gauge of equity market volatility.
Key Achievements
- Cboe operates the largest options exchange in the U.S. and the leading stock exchange by value traded in Europe.
- It is the second-largest stock exchange operator in the U.S. and a major global player in ETP trading.
Product Offerings & Segments
- Options: With significant growth in trading volumes, the revenue from options trading hit $314.5 million, driven by a 24% rise in index options trading.
- North American Equities: Despite a minor drop in revenue to $86.3 million, the market share in U.S. Equities remained stable.
- Europe and Asia Pacific: Revenue climbed 9% to $48 million, bolstered by non-transaction revenue streams like market data fees.
- Futures: Futures trading saw robust growth, contributing $32.4 million in revenue.
- Global FX: Foreign exchange trading revenue grew by 12% to $18.9 million.
Financial Performance
For the fiscal year 2023, Cboe reported record financial results with a significant rise in diluted earnings per share (EPS) and net revenue. Highlights include a 226% year-over-year increase in diluted EPS to $7.13 and a 10% rise in annual net revenue to $1.9 billion. These figures reflect Cboe's robust market position and strategic initiatives geared towards sustained growth.
Strategic Initiatives
In 2024, Cboe continues to focus on growth and operational efficiency, projecting organic net revenue growth between 5% and 7%. It also emphasized the integration of its digital asset derivatives into its broader Global Derivatives and Clearing businesses, enhancing operational efficiencies and technology leverage. Additionally, Cboe plans to expand its digital asset product offerings, including cash-settled bitcoin and ether futures, further solidifying its position in the digital assets space.
Innovations and Collaborations
Cboe has been at the forefront of trading innovations, introducing trading products like 0DTE (zero days to expiry) options, which have gained popularity among retail and professional traders alike. Recently, Cboe announced collaborations with FTSE Russell to develop new digital asset derivatives, leveraging both parties' expertise to meet growing market demand.
Conclusion
Overall, Cboe Global Markets continues to excel in providing cutting-edge trading solutions and remains committed to expanding its product offerings, leveraging technology, and driving innovation in global financial markets. For investors and traders seeking reliable and advanced trading platforms, Cboe's comprehensive market infrastructure and strategic growth initiatives make it a significant entity in the global trading landscape.
Cboe Global Markets, a leader in market infrastructure, announced that Chris Isaacson and Brian Schell will present at the UBS Financial Services Virtual Conference on August 10 at 1:00 p.m. ET. This presentation will provide insights into the company's market strategies and future outlook. Investors can access the live webcast and subsequent replay on the Cboe website under Events and Presentations. The archived version will be available shortly after the event.
Cboe Global Markets (CBOE) announced a discrepancy between the calculated values of its spot Cboe Volatility Index® (VIX® Index) and the methodology outlined in its VIX White Paper. Although most calculations aligned with the White Paper, some instances resulted in the prior index value being disseminated instead of the current value. The company is investigating these discrepancies and believes that the impact on VIX futures and options remains minimal. Cboe plans to release an addendum to the VIX White Paper and will seek public consultation on any proposed changes.
Cboe Global Markets reported strong financial results for Q2 2021, showcasing significant year-over-year revenue growth due to heightened trading in proprietary index products and increased demand for data solutions. The acquisition of Chi-X Asia Pacific on July 1 has strengthened Cboe's position in the global market. The company raised its organic revenue growth target for recurring non-transaction revenue to 12-13%, up from 10-11%. Cboe returned nearly $79 million to shareholders via buybacks and dividends, maintaining a robust financial position moving into the second half of the year.
Cboe Europe has received regulatory approvals to launch Cboe Europe Derivatives, a new Amsterdam-based futures and options market, set to commence on September 6, 2021. This market will offer trading on six Cboe Europe indices, including the Cboe Eurozone 50 and Cboe UK 100, with EuroCCP providing clearing services. The launch is seen as a significant milestone and aims to enhance market efficiency for participants in Europe’s equity derivatives sector. Cboe's initiative reflects its commitment to becoming a leading global market infrastructure operator.
Cboe Europe announced an enhancement to its block trading platform, Cboe LIS, with the launch of Directed Indication of Interest (DIOI) functionality on July 12, 2021. This new service allows brokers to target IOIs to selected buyside clients, preserving anonymity until execution. Cboe intends to extend this service to Cboe NL LIS after regulatory approval. The service was initially deployed with Morgan Stanley as the first sellside client. Cboe LIS has reported a record market share of 24.8% and approximately €370 million in average daily notional value traded during Q2 2021.
Cboe Global Markets reported its trading volume statistics for June 2021, showing a 12.8% year-over-year increase in options volume. Total options volume reached 264,230 contracts, while futures volume decreased by 0.9%. U.S. equities matched volume saw a significant decline of 25.7%. For the second quarter guidance, RPC for options is expected to be 3-4% lower, primarily due to increased multi-listed options volume. Notably, U.S. equities on-exchange RPC is anticipated to drop 4-5% below the previous average, indicating challenges in revenue capture.
Cboe Global Markets (CBOE) has launched the Cboe 3-Month Implied Correlation Index (COR3M), aimed at improving market participants' understanding of volatility factors in equity markets. This financial benchmark provides real-time estimates of expected correlations based on implied volatilities from S&P 500 component options. The index uses advanced methodologies and data from Cboe Hanweck to quantify market sentiment and aid in risk management. Cboe plans to expand the index to other maturities and will publish COR3M values throughout the trading day.
Cboe Global Markets, Inc. (CBOE) has successfully acquired Chi-X Asia Pacific Holdings, Ltd., gaining entry into Japan and Australia’s securities markets. This strategic move aims to enhance Cboe's global presence and expand its trading solutions. Chi-X Asia Pacific generated approximately USD 26 million in net revenue for the year ending December 2020, with a significant portion coming from non-transactional revenue. Cboe plans to integrate Chi-X Australia and Japan into its trading platform, thereby providing improved access to a broader range of products and services.
Cboe Global Markets (CBOE) plans to launch Cboe LIS powered by BIDS in Canada on February 1, 2022, subject to regulatory approval. This enhanced block trading service combines capabilities from MATCHNow and BIDS, aiming to provide better liquidity for buy-side and sell-side participants. The offering follows successful implementations in Europe, where Cboe LIS has achieved significant trading volume. Recent trends show increasing demand for MATCHNow’s Conditionals since 2019, including record trading volumes in March 2021. This expansion will strengthen Cboe's position in the global block trading market.
Cboe Global Markets (CBOE) announced plans to extend global trading hours for its S&P 500 Index (SPX) and Cboe Volatility Index (VIX) options to nearly 24 hours each business day starting November 21, 2021, pending regulatory review. This extension aims to meet increasing global demand for accessible trading opportunities, allowing investors to better manage risks in real-time, especially during macroeconomic events. The GTH session will operate from 8:15 PM ET to 9:15 AM ET, complementing the regular trading hours and introducing an additional curb session starting September 27, 2021.
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