Cboe Global Markets Reports Higher Q4 Profit Driven by Options Trading
Exchange operator Cboe Global Markets saw a surge in adjusted fourth-quarter profit, fueled by increased options trading amid investor demand for risk hedging.
Options trading revenue jumped 3% year-over-year, while futures revenue declined 7% in the quarter. Persistent concerns about interest rate cuts, potential trade wars, and geopolitical instability kept investors on edge, driving demand for hedging instruments.
CEO Fredric Tomczyk noted that all three categories – Derivatives Markets, Data Vantage, and Cash and Spot Markets – contributed to growth in the fourth quarter and full year.
Average daily volumes for company-wide options surged to 15.7 million contracts, up from 14.9 million in the same quarter last year.
On an adjusted basis, net income allocated to common shareholders reached $221.2 million, translating to $2.10 per share for the quarter ended December 31. This represents an increase from $218.8 million ($2.06 per share) in the prior year period.
Cboe's quarterly net revenue rose 5% to $524.5 million year-over-year, driven by a 10% increase in revenue from North American equities, reaching $94.9 million.