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 (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.
Cboe Global Markets (CBOE) announces the election of Ivan Fong and Alexander J. Matturri, Jr. to its Board of Directors, increasing the total to 15 members. Fong, currently General Counsel at 3M, brings extensive legal experience, while Matturri, former CEO of S&P Dow Jones Indices, adds financial expertise. Cboe's leadership emphasizes that their appointments will enhance strategic initiatives, aiming for growth and sustainable returns for shareholders.
Cboe Global Markets (CBOE) will launch Mini-Russell 2000 Index options on the Cboe Options Exchange in Q1 2021, pending regulatory approval. This initiative aims to enhance market access for various participants by offering a smaller contract size—one-tenth of the standard option—catering to retail and institutional investors. The project highlights Cboe's collaboration with FTSE Russell and is expected to increase trading liquidity and participation in the U.S. small-cap equity market. Average daily volumes for Russell 2000 options are around 34,000 contracts, with total open interest exceeding 822,000 contracts.
Cboe Global Markets, Inc. (Cboe: CBOE) announced the transfer of ProShares Volatility ETFs to its BZX Exchange from NYSE Arca. This change takes effect on December 16, 2020, with the ETFs providing exposure to S&P 500 VIX futures indices. The transferred ETFs include VIXY, VIXM, UVXY, and SVXY, expanding Cboe's offerings to 22 ProShares ETFs. Cboe BZX Exchange, as of December 2020, ranks as the second-largest venue for exchange-traded products (ETPs) in the U.S., managing over $370 billion in assets.
Cboe Global Markets (CBOE) has signed an exclusive licensing agreement with CoinRoutes to use its RealPrice data for creating cryptocurrency market indices. The RealPrice data provides a consolidated Best-Bid-Offer from various exchanges, reflective of actual trading costs. Cboe will use this data to develop custom index solutions, enhancing market transparency and accuracy. The initiative aims to attract a larger customer base and improve tools for portfolio construction, risk measurement, and analytics. Cboe plans to offer this data on its Cryptocurrency channel by the end of Q1 2021.
Cboe Global Markets (CBOE) announced it will release its fourth-quarter financial results on February 5, 2021, before market opening. A conference call with management will follow at 7:30 a.m. CT (8:30 a.m. ET). Investors can access the call via the Cboe Investor Relations website, and a replay will be available post-call until February 12, 2021. Cboe operates major exchanges for options, futures, equities, and ETFs globally, with a strong presence in the U.S. and Europe.
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