Cboe Global Mark Stock Price, News & Analysis

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.

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.