Cboe's quarterly profit rises on strong hedging activity
Nov 1 (Reuters) -Cboe Global Markets CBOE.Z reported a rise in third-quarter profit on Friday, driven by strong options trading as investors actively hedged against geopolitical and economic uncertainties.
A robust equities market, shifts in the U.S. Federal Reserve's key policy rates and the potential economic fallout from the conflict in the Middle East have investors and portfolio managers on edge, prompting them to hedge their positions.
Cboe's options trading business revenue grew 10% compared with last year, while futures revenue climbed 17%.
Average daily volumes in total company options increased to 14.88 millioncontracts in the quarter ended Sept. 30, from 14.59 million a year earlier.
Volumes in S&P 500 .SPX index options were also higher, with third-quarter ADV increasing to 4.23 millioncontracts from 3.74 million contracts.
Cboe's third-quarter total revenue, less cost,rose 11% to $532 million from a year earlier, while revenue from North America equities rose 3% to $98 million.
The exchange operator's net income allocated to common shareholders came in at $217.4 million, or $2.07 per share, in the three months ended Sept. 30, compared with $207.1 million, or $1.95 apiece in the year-ago period.
Cboe's shares have gained 19.6% so far in 2024, outperforming peer CME Group CME.O, but below the Nasdaq NDAQ.O and NYSE-parent Intercontinental Exchange ICE.N.
Reporting by Pritam Biswas in Bengaluru; Editing by Pooja Desai
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
