Another strong quarter for Cboe
07 August 2018 Chicago
Image: Shutterstock
Cboe Global Markets recently reported financial results for the second quarter of 2018.
Total revenues less cost of revenues (net revenue) were $283.5 million, up 6 percent from $266.9 million in the prior year period, driven primarily by higher net transaction fees and market data revenue.
Options net revenue of $136.4 million was up 8 percent from the second quarter of 2017, primarily due to an increase in net transaction fees, which in turn was largely driven by an increase in index options revenue per contract (RPC).
The RPC increase was primarily due to a shift in mix of index options traded and pricing changes implemented at the beginning of the year, explained Cboe.
Total options average daily volume (ADV) increased 1 percent and the average RPC increased 7 percent for the second quarter, as a result of higher RPC achieved in both multiply-listed options and index options.
Cboe said that US equities net revenue of $77.6 million was up $3.2 million as a result of increases in market data fees and exchange services and other fees.
The business maintained its position as the second-largest market operator for the second quarter of 2018, with market share of 18.9 percent.
Futures net revenue of $31.4 million fell $4.8 million or 13 percent, primarily due to lower net transaction fees offset somewhat by increases in market data fees and exchange services and other fees.
Net revenue for European equities increased 26 percent, reflecting growth in both net transaction fees and non-transaction revenue.
The increase also reflects a benefit from foreign currency translation, said Cboe.
On the same day, but separately, Cboe reported July 2018 monthly trading volume.
Year-to-date ADV across options, futures, US and European equities was up over 2017.
Options ADV rose 13.9 percent compared to the year earlier figure, futures contracts rose 5.3 percent, US equities 3.9 percent.
Edward Tilly, chairman and CEO of Cboe, said: “We are pleased to report another strong quarter of year-over-year top-line growth despite some headwinds following a dramatic shift in market volatility.”
He added: “While trading in VIX options and futures were down year-over-year in the second quarter, SPX options trading grew by 18 percent and we continued to demonstrate strong growth in our European equities.”
“We remain confident that our market-leading businesses and solid financial condition leave us well positioned to drive sustainable long-term growth and shareholder value.”
Total revenues less cost of revenues (net revenue) were $283.5 million, up 6 percent from $266.9 million in the prior year period, driven primarily by higher net transaction fees and market data revenue.
Options net revenue of $136.4 million was up 8 percent from the second quarter of 2017, primarily due to an increase in net transaction fees, which in turn was largely driven by an increase in index options revenue per contract (RPC).
The RPC increase was primarily due to a shift in mix of index options traded and pricing changes implemented at the beginning of the year, explained Cboe.
Total options average daily volume (ADV) increased 1 percent and the average RPC increased 7 percent for the second quarter, as a result of higher RPC achieved in both multiply-listed options and index options.
Cboe said that US equities net revenue of $77.6 million was up $3.2 million as a result of increases in market data fees and exchange services and other fees.
The business maintained its position as the second-largest market operator for the second quarter of 2018, with market share of 18.9 percent.
Futures net revenue of $31.4 million fell $4.8 million or 13 percent, primarily due to lower net transaction fees offset somewhat by increases in market data fees and exchange services and other fees.
Net revenue for European equities increased 26 percent, reflecting growth in both net transaction fees and non-transaction revenue.
The increase also reflects a benefit from foreign currency translation, said Cboe.
On the same day, but separately, Cboe reported July 2018 monthly trading volume.
Year-to-date ADV across options, futures, US and European equities was up over 2017.
Options ADV rose 13.9 percent compared to the year earlier figure, futures contracts rose 5.3 percent, US equities 3.9 percent.
Edward Tilly, chairman and CEO of Cboe, said: “We are pleased to report another strong quarter of year-over-year top-line growth despite some headwinds following a dramatic shift in market volatility.”
He added: “While trading in VIX options and futures were down year-over-year in the second quarter, SPX options trading grew by 18 percent and we continued to demonstrate strong growth in our European equities.”
“We remain confident that our market-leading businesses and solid financial condition leave us well positioned to drive sustainable long-term growth and shareholder value.”
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