Cboe Global Mark Stock Price, News & Analysis

Cboe Global Markets (CBOE) has announced a $500 million increase in its share repurchase authorization and declared an increased quarterly cash dividend of $0.63 per share for Q3 2024. This represents a 15% increase from the previous quarter's dividend of $0.55 per share. The dividend is payable on September 13, 2024, to stockholders of record as of August 30, 2024.

As of July 31, 2024, Cboe had $179.8 million remaining under existing repurchase authorizations. The company's CEO, Fred Tomczyk, stated that these actions reflect confidence in Cboe's global business performance and disciplined capital allocation. The repurchase program has no expiration date and allows for various methods of share repurchases, with timing and extent dependent on market conditions and other factors.

Cboe Global Markets (CBOE) has launched the VIXTLT Index, a new volatility measure for the U.S. Treasury market. This index, which began publishing on August 12, 2024, is designed to track 30-day expected volatility in real-time, similar to the VIX Index for equity markets. The VIXTLT Index is calculated using options on the iShares® 20+ Year Treasury Bond ETF (TLT), a highly liquid fund focused on long-term Treasury bonds.

This new index adds to Cboe's growing suite of volatility indices and derivatives-based offerings. It provides market participants with a tool to monitor expected volatility in the Treasury market, complementing the VIX Index for equities. By observing both indices, investors can gain insights into how volatility in these two major asset classes interacts during different market conditions. The VIXTLT Index is available in basis point measure, offering a familiar metric for fixed income market participants.

Cboe Global Markets (CBOE) has announced plans to launch options on Cboe Volatility Index (VIX) futures, expected to begin trading on October 14, 2024, subject to regulatory review. These new options will be CFTC-regulated and based on front-month VIX futures, allowing a wider range of market participants to manage or gain exposure to U.S. equity market volatility. The move aims to expand Cboe's VIX complex and address global demand for hedging tools, especially with the upcoming U.S. election, which has historically been a significant volatility catalyst.

The new options will be European-style and physically settle into front-month VIX futures. They are designed to complement existing VIX Index options, providing more choice in expiration dates and enabling more granular hedging strategies. Cboe expects these options to appeal to a broad group of users, including Commodity Trading Advisors and customers of Futures Commission Merchants.

Cboe Global Markets (CBOE) reported its July 2024 trading volume statistics across global business lines. Key highlights include:

- Index options ADV increased by 20.2% year-over-year to 4,140k contracts

- Futures ADV rose 26.1% to 267k contracts

- U.S. Equities On-Exchange ADV decreased by 5.9% to 1,280 million matched shares

- European Equities ADV grew 11.8% to €9,229 million

- Japanese Equities ADV surged 306.9% to 323 billion JPY

- Global FX ADV increased slightly by 1.4% to $45,586 million

These figures demonstrate mixed performance across Cboe's various market segments, with significant growth in derivatives and international equities, but a decline in U.S. equities trading volume.

Cboe Global Markets reported financial results for the second quarter of 2024, showcasing strong performance despite some setbacks. Key highlights include:

• Diluted EPS of $1.33, down 15%, primarily due to impairment of intangible assets in the Digital reporting unit.
• Adjusted Diluted EPS rose 21% to $2.15, matching the quarterly record from Q1 2024.
• Record Net Revenue of $513.8 million, up 10% year-over-year.
• Increased organic total net revenue growth guidance to 6-8% for 2024, up from 5-7%.
• Reaffirmed 2024 adjusted operating expense guidance of $795 to $805 million.

CEO Fredric Tomczyk highlighted the company's robust business model and strategic progress, while CFO Jill Griebenow noted strong performance across all business categories, improved EBITDA margins, and significant shareholder returns.

Cboe Global Markets (CBOE) has announced plans to launch a redesigned Cboe S&P 500 Variance Futures contract (VA), set to begin trading on September 23, 2024, subject to regulatory review. The new product aims to simplify variance trading and settlement, offering an exchange-listed alternative to OTC variance swaps. Key features include:

- Settlement based on annualized realized variance of the S&P 500 Index
- Quoting and trading directly in variance units with a $12 contract size
- Alignment with standard S&P 500 Index (SPX) options expiration dates
- Benefits of price discovery, central clearing, and improved accessibility

The redesign addresses customer feedback and aims to provide a more capital-efficient and user-friendly approach to variance trading in the current regulatory landscape.

Cboe Global Markets announced the winners of its 2024 Options Institute Research Grant Program, sponsored by S&P Dow Jones Indices and SpiderRock Advisors. The recipients include Siamak Javadi, Dr. Ali Nejadmalayeri, and William Campbell for the Fixed Income Index Ecosystem Research Grant, and Anup Basu and Adam Clements for the Derivatives Solutions for Private Wealth and Institutional Investors Research Grant.

The grants support academic research to advance understanding of derivatives usage and financial exchange structures. Recipients will use Cboe's historical data sets, valued up to $35,000, to conduct their research.

Cboe Europe has announced the upcoming launch of Cboe BIDS VWAP-X, a unique trading service for European equities. Scheduled for early Q4 2024, pending regulatory approval, the service will allow market participants to trade at a volume weighted average price (VWAP). Provided by Cboe BIDS Europe, the largest block trading platform in the region, VWAP-X will utilize BIDS' established conditional trade negotiation framework.

This innovation aims to enhance execution outcomes by aligning with the growing trend of systematic and passive investing. The service will benefit from protections against information leakage and will be accessible via FIX connectivity. Customer testing is set for Q3 2024. Pricing details will be disclosed closer to the launch.

Cboe Global Markets reported June 2024 trading volume statistics, noting significant changes across various segments. The average daily volume (ADV) for multiply-listed options dropped by 4%, while index options saw a slight decline of 0.1%. Futures contracts increased by 18.8% year-over-year. U.S. on-exchange equities matched shares decreased by 5.4%, whereas Canadian equities experienced a 28.4% rise. European equities grew by 10.9%, and Japanese equities surged by 80.6%. Global FX reported a new quarterly Spot ADNV record of $47.7 billion. Cboe Japan achieved a record 5.5% market share. The projected RPC for the second quarter of 2024 shows fluctuations across different products, with multiply-listed options at $0.063 per contract and index options at $0.896 per contract.