Cboe Global Markets, Inc. - CBOE STOCK NEWS

Cboe Global Markets has announced a quarterly cash dividend of $0.42 per share, scheduled for payment on March 15, 2021. This dividend will benefit shareholders of record as of February 26, 2021. Cboe continues to demonstrate its commitment to returning value to shareholders while operating across various asset classes, including options, futures, and equities.

Cboe Global Markets plans to introduce early trading hours on its EDGX Equities Exchange starting March 8, pending regulatory approval. The new hours will allow order acceptance from 3:30 a.m. ET to 7:00 a.m. ET, responding to rising demand from retail investors worldwide. In 2020, Cboe EDGX saw an average of 705 million shares traded daily, with retail investors making up 50% of monthly trading volumes. This expansion aims to enhance trading access and improve execution quality for retail customers.

ETFS Capital has acquired ETF.com from Cboe Global Markets, a deal aimed at enhancing ETF news and education resources. ETF.com, founded in 2001, has established itself as an authority in the ETF sector, growing under Cboe's ownership with expanded multimedia offerings. The global ETF market reached $8 trillion in assets by the end of 2020. ETFS Capital plans to leverage its portfolio to boost ETF.com’s innovation and growth. Cboe described the acquisition as immaterial financially. Both companies anticipate collaborative opportunities to strengthen the ETF industry.

Cboe Global Markets reported solid financial results for Q4 and the full year 2020, achieving 10% net revenue growth and 11% adjusted EPS growth. CEO Edward T. Tilly emphasized the company's commitment to product innovation and diversifying revenue streams. The firm returned $520 million to shareholders, a 69% increase from 2019, marking the highest amount ever. The Board approved a $200 million increase in share repurchase authorization. Cboe targets 4-6% organic net revenue growth in the mid-term and aims to continue investing strategically for future growth.

Cboe Global Markets (CBOE) reported robust trading volumes for January 2021, showing significant growth across various segments. Options volume reached 257,900 contracts, a 34% increase from January 2020, with an average daily volume of 13,574 contracts. U.S. equities matched volume surged to 43.4 billion shares, up 67.2% year-over-year. Noteworthy records included a new high in options trading on January 27 with 18.5 million contracts. However, futures volume declined by 10.7% compared to December 2020. The company is set to release its average revenue per contract data on February 5, 2021, which may impact future performance assessments.

Cboe Global Markets (CBOE) announced a new incentive program aimed at enhancing market quality for listed exchange-traded products (ETPs) on its BZX Exchange, starting February 1, 2021, pending regulatory review. This follows the success of its initial program that offered a flat daily fee to lead market makers (LMMs) instead of transaction-based payments. The enhanced program provides LMMs with more flexibility by allowing them to choose between two incentive models monthly, particularly for ETPs with a consolidated average daily volume exceeding 1 million shares. Cboe captured 36% of new ETP launches in 2020, bolstering its position as a key player in the market.

Cboe Global Markets (CBOE) has announced a temporary pause on all donations from its Political Action Committee (PAC) following the recent assault on the U.S. Capitol. The company emphasizes its commitment to democratic principles and is reviewing its PAC contribution strategy to align with its values. Cboe, a leading market operator, offers diverse trading solutions in various asset classes worldwide, including options, futures, and equities. The company's operational breadth extends across multiple regions including the U.S., Europe, and Asia.

Cboe Global Markets reported significant trading volume growth for December 2020 and the full year, with total options volume increasing 38.6% year-over-year to 2.56 billion contracts. December's options ADV rose to 10.1 million contracts, marking an all-time high. U.S. equities matched volume also saw a 50.8% increase. However, futures contracts declined by 19.1% annually. The company anticipates a decrease in revenue per contract for options in Q4 2020 by 2-3% compared to prior averages, while U.S. equities RPC is expected to be 15-17% above the historical average.

Cboe Global Markets has successfully completed its acquisition of BIDS Trading, the largest independent block-trading ATS in the U.S. This strategic move positions Cboe to access over 40% of U.S. equities trading volume, enhancing its competitive edge in the off-exchange segment. The acquisition follows a fruitful partnership in Europe, where the Cboe LIS platform has grown significantly. BIDS Trading generated approximately $41 million in net revenue in the last year, and Cboe anticipates an immediate positive impact, expecting an adjusted EPS contribution of $0.05 to $0.06 in 2021.