Cboe posts higher profit as market volatility boosts options trading
Updates share price in paragraph 6; adds CEO comment, index performance and president's comment in paragraphs 7-10
By Pritam Biswas and Laura Matthews
May 3 (Reuters) -Cboe Global Markets CBOE.Z reported a rise in first-quarter profit on Friday, as strong demand for hedging products amid shifts in market volatility helped boost the exchange operator's options trading volumes.
Geopolitical risks and macroeconomic uncertainties have fueled volatility in the markets, prompting investors and portfolio managers to hedge their positions.
Average daily volumes (ADV) in total company options increased to 14.83 million contracts in the quarter ended March 31 from 14.66 million a year earlier.
Net revenue from Cboe's options rose 10% to $307.4 million.
This helped its adjusted net income to grow to $227.7 million, or $2.15 per share, from $201.8 million, or $1.90 per share, a year earlier.
Following a call with analysts, shares of the company were up about 3.08% at $179.48.
"Given the secular and cyclical tailwinds in place, we are well positioned as investors continue to utilize options in their portfolio and trading strategies," Fredric Tomczyk, chief executive officer at Cboe Global Markets, said on an analysts call.
Investors taking advantage of lower volatility in the first quarter helped ADV in S&P 500 .SPX index options rise 17% to 3.2 million contracts. Meanwhile, options contracts opened on the same day they expire, or 0DTE (zero-days-to-expiry) rose 32% and made up 48% of overall SPX activity in the first quarter.
Options linked to the VIX volatility index .VIX also saw strong demand from hedgers, with ADV in call volume rising 4%, as investors added cheap tail protection, said Dave Howson, global president at CBOE.
"The resilience of our index options volume, in the face of cyclical headwinds, speaks to the strength of the secular drivers of our business," Howson said.
Cboe said last month it plans to wind down operations of Cboe Digital Spot Market, its spot trading platform for cryptocurrencies, in the third quarter in a bid to refocus its business, citing lack of regulatory clarity in the industry.
The company also plans to fully integrate its digital asset derivatives business into its existing Global Derivatives and Clearing businesses as a part of strategic review.
Its first-quarter net revenue rose 7% to $502.1 million from a year earlier, while revenue from North America equities dropped 1% to $92.6 million, compared with a 10% fall in the segment in the previous quarter.
Reporting by Pritam Biswas in Bengaluru and Laura Matthews in New York; Editing by Shinjini Ganguli and Jonathan Oatis
免責聲明: XM Group提供線上交易平台的登入和執行服務，允許個人查看和/或使用網站所提供的內容，但不進行任何更改或擴展其服務和訪問權限，並受以下條款與條例約束：（i）條款與條例；（ii）風險提示；（iii）完全免責聲明。網站內部所提供的所有資訊，僅限於一般資訊用途。請注意，我們所有的線上交易平台內容並不構成，也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料，僅適用於教育/資訊類用途，不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議，或是交易價格紀錄，或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容，包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接，皆爲‘按原狀’，並作爲一般市場評論所提供，而非投資建議。請理解和接受，所有被歸類為投資研究範圍的相關内容，並非爲了促進投資研究獨立性，而根據法律要求所編寫，而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊，相關詳情請點擊 這裡查看。
