Core Viewpoint - Cboe plans to launch "Continuous futures" for bitcoin and ether on November 10, pending regulatory approval, aiming to adapt perpetual futures contracts to U.S. regulations [1][4] Group 1: Product Features - Cboe's Continuous futures contracts will have a duration of up to 10 years, unlike traditional futures that expire monthly or quarterly, reducing the need for traders to roll positions [2] - The contracts will be adjusted daily against spot prices through a transparent funding rate mechanism, allowing long-term exposure without the need for rebalancing [2][3] - Settlement of the contracts will be in cash, meaning no actual bitcoin or ether will change hands, with payouts linked to the spot price of the cryptocurrencies [3] Group 2: Market Impact - Continuous futures are expected to attract institutional market participants, existing CFE customers, and a growing segment of retail traders interested in crypto derivatives [4] - The futures will be cleared through Cboe Clear U.S., which is regulated by the Commodity Futures Trading Commission (CFTC) [4]

Group 1 - The session features Craig Donohue, the new CEO of Cboe, indicating a leadership change within the company [1] - Benjamin Budish, a research analyst covering U.S. brokers, asset managers, and exchanges, is moderating the discussion [1]

Summary of Cboe Global Markets FY Conference Call (September 08, 2025) Company Overview - **Company**: Cboe Global Markets (BATS:CBOE) - **New CEO**: Craig Donahue, who has shifted the company's strategy towards a sharper focus on index options and data after a period of heavy acquisitions [3][5] Key Industry Insights - **Market Volatility**: The VIX index reached its third highest level in the last twenty years, indicating significant market volatility, which is beneficial for Cboe as it attracts customers seeking to manage risk [9][10] - **Customer Behavior**: Strong performance across all customer segments, with a structural rather than cyclical demand for options products [10][11] Growth Strategy - **Focus on Core Business**: Cboe is optimizing its core business and exploring growth opportunities around it, particularly in index options and data services [6][8] - **Exit from Japanese Equities**: The decision to exit the Japanese equities business reflects a focus on financial rigor and growth potential [6][50] - **Retail Trading Growth**: There is substantial growth potential in retail trading of index options, with many brokerage firms like Robinhood and Interactive Brokers expanding their offerings [13][14] Market Opportunities - **Total Addressable Market (TAM)**: The retail trading market for index options is significant, with only a small percentage of accounts currently authorized to trade options [14] - **International Expansion**: Cboe is focusing on international growth, particularly in Asia Pacific, through partnerships and education [15][19] - **Short-Dated Options**: The popularity of zero DTE (days to expiration) options is increasing, indicating further growth potential in this segment [22][23] Product Performance - **XSP Growth**: The XSP product has seen substantial growth, with a year-over-year increase of over 40% in July and doubling in August, driven by factors such as cash settlement and tax treatment [20][21] - **DataVantage Performance**: DataVantage has experienced over 10% growth in Q2, with 45% growth internationally, highlighting the importance of data services in Cboe's strategy [31][32] Regulatory Environment - **Favorable Landscape**: The current regulatory environment is seen as favorable for innovation and competition, with a focus on streamlining regulations [47][48] - **Market Integrity**: Cboe emphasizes the importance of maintaining market integrity while adapting to new entrants and disruptive innovations [48] M&A and Capital Allocation - **M&A Strategy**: The focus is currently on optimizing core operations rather than pursuing mergers and acquisitions, with a high bar for any potential deals [56][58] - **Recurring Revenue Models**: There is an interest in exploring opportunities that could provide a blend of recurring revenue alongside transaction-based income [59][62] Competitive Landscape - **Intense Competition**: The competitive environment in U.S. equities is described as intense, with a shift towards dark markets, but Cboe maintains a dominant position in multi-listed options [63][65] Financial Performance - **High Margins**: Cboe operates with high margins, and while there is potential for margin expansion, the focus remains on operational efficiency and growth opportunities [68][70] Conclusion Cboe Global Markets is strategically positioning itself for growth in the index options and data services sectors while navigating a complex regulatory environment and intense competition. The company is focused on optimizing its core business and exploring international opportunities, particularly in the retail trading space.

Core Viewpoint - Cboe Global Markets is a leading provider of market infrastructure and tradable products, focusing on delivering innovative trading, clearing, and investment solutions globally [1] Group 1: Company Overview - Cboe Global Markets operates a trusted and inclusive global marketplace [1] - The company offers a range of products, technology, and data solutions aimed at enabling participants to achieve a sustainable financial future [1] - Cboe provides trading solutions across multiple asset classes, including equities, derivatives, and FX [1] Group 2: Geographic Reach - Cboe operates in key regions including North America, Europe, and Asia Pacific [1]

Core Insights - Cboe Global Markets reported record trading volumes in August 2025, with significant increases in various segments compared to the previous year [1][9] - The average daily trading volume (ADV) across Cboe's four U.S. options exchanges reached an all-time high of 19.2 million contracts [9] Trading Volume Highlights - Multiply-listed options saw an ADV of 14.3 million contracts, a 38.5% increase from August 2024 and a 17.3% increase from July 2025 [4] - Index options ADV was 4.9 million contracts, up 11.1% year-over-year and 9.5% month-over-month [4] - U.S. equities on-exchange matched shares totaled 1.646 billion, reflecting a 30.8% increase from the previous year [4] - U.S. equities off-exchange matched shares surged to 229 million, a 194.9% increase compared to August 2024 [4] - European equities trading volume increased by 26.3% year-over-year to €10.701 million [4] - Global FX trading volume decreased by 4.9% to $48.819 million compared to the previous month [4] Market Share and Performance - Cboe Clear Europe reported 98,364 cleared trades, a slight decrease of 0.5% from the previous year [4] - The net settlements in Cboe Clear Europe increased by 13.5% year-over-year to 1,115 [4] - The company continues to expand its market presence across multiple asset classes, including equities, derivatives, and FX [5]

Core Insights - Cboe Global Markets, Inc. (CBOE) shares have increased by 26.1% year-to-date, outperforming the industry growth of 15.9%, the Finance sector's return of 12.5%, and the Zacks S&P 500 composite's rise of 9.8% [1] - CBOE has outperformed peers such as Intercontinental Exchange Inc. (ICE), CME Group Inc. (CME), and Nasdaq, Inc. (NDAQ), with their respective year-to-date gains of 21.3%, 16.1%, and 22.6% [1] Market Performance - CBOE has a market capitalization of $25.77 billion, with an average trading volume of 0.8 million shares over the last three months [3] - CBOE shares closed at $246.43, trading above the 50-day and 200-day simple moving averages of $238.63 and $217.89, indicating strong upward momentum [4] Financial Projections - The Zacks Consensus Estimate for CBOE's 2025 earnings per share indicates an 11.5% year-over-year increase, with revenues projected at $2.27 billion, reflecting a 9.6% improvement [8] - Expected long-term earnings growth rate for CBOE is 13.8%, surpassing the industry average of 10.4% [9] Analyst Sentiment - Eight out of 13 analysts have raised their estimates for CBOE's 2025 earnings, with the consensus estimate increasing by 0.9% over the past 60 days [10] Revenue Growth Drivers - CBOE's diversified business mix supports steady revenue generation, with expectations for mid to high single-digit organic net revenue growth in 2025 [7][12] - The company is focused on increasing recurring non-transaction revenues through access and capacity fees and proprietary market data fees [12] Strategic Initiatives - CBOE is enhancing its global service breadth and generating cost synergies through strategic acquisitions [13] - The company has improved its cash position and reduced debt, with favorable leverage ratios compared to industry averages [13] Dividend and Share Repurchase - CBOE has increased dividends for 13 consecutive years and has $614.5 million remaining under its existing share repurchase authorizations as of June 30, 2025 [17]

Core Insights - The Zacks Securities and Exchanges industry is benefiting from a diversified product portfolio, increased trading volumes, and the growing adoption of crypto assets, which is expected to enhance revenues for key players like S&P Global, Intercontinental Exchange, CME Group, Nasdaq Inc., and Cboe Global Markets [1][2] - The industry is focusing on non-trading revenue sources, including market technology and information services, to create stable cash flows and reduce reliance on trading income [4][5] Industry Overview - The Zacks Securities and Exchanges industry includes companies that operate electronic marketplaces for trading stocks, options, bonds, and commodity contracts, generating revenue from fees and providing data services [2] - The industry is experiencing increased adoption of crypto assets, but faces challenges due to regulatory compliance [2] Trends Shaping the Industry - Trading volume is driven by volatility, with a projected market size of $49.6 billion by 2028, growing at a CAGR of 12.1% [3] - Companies are diversifying into recurring revenue sources to stabilize income amidst fluctuating market volumes [4] - Mergers and acquisitions are on the rise, helping companies expand their market reach and product offerings [5] - Continuous investment in technology, particularly AI and blockchain, is enhancing operational efficiency and competitiveness [6][7] Industry Performance - The Zacks Securities and Exchanges industry ranks 24, placing it in the top 10% of Zacks industries, indicating strong near-term prospects [8][9] - The industry has outperformed the broader Zacks Finance sector and the S&P 500, gaining 15% year-to-date compared to 10.7% and 9.5% respectively [12] Valuation Metrics - The industry is currently trading at a trailing P/E of 26.32X, higher than the S&P 500's 22.85X and the sector's 16.89X [15] Company Highlights - **Nasdaq**: Focused on maximizing non-trading revenue and technology services, with a projected EPS growth of 17.4% and 11.5% for 2025 and 2026 respectively [19][20] - **S&P Global**: Positioned to benefit from growing demand for business information services, with EPS growth estimates of 9.2% and 11% for 2025 and 2026 [22][23] - **Intercontinental Exchange**: A leading operator with a strong portfolio and expected EPS growth of 15% and 10.8% for 2025 and 2026 [25][26] - **CME Group**: The largest futures exchange, focusing on expanding product offerings, with EPS growth estimates of 8.6% and 3.8% for 2025 and 2026 [28][29] - **Cboe Global Markets**: Expanding product lines and geographic reach, with EPS growth projections of 11.5% and 5.9% for 2025 and 2026 [32][33]

Core Viewpoint - Cboe Global Markets has appointed Prashant Bhatia as Executive Vice President, Head of Enterprise Strategy & Corporate Development, effective September 2, 2025, to enhance its growth strategy and industry leadership [1][2]. Group 1: Appointment Details - Prashant Bhatia will collaborate with Cboe's executive leadership to refine the company's business strategy and identify growth opportunities [2]. - Craig Donohue, CEO of Cboe, emphasized Bhatia's valuable addition to the leadership team, highlighting his understanding of the competitive landscape and financial decision-making skills [2][3]. Group 2: Background of Prashant Bhatia - Bhatia has over 30 years of experience in the financial services sector, previously leading Enterprise Strategy & Corporate Development at TD Ameritrade for 11 years [3]. - He has been advising Cboe's management and working closely with its board of directors since December 2023 [3]. Group 3: Company Overview - Cboe Global Markets is recognized as the world's leading derivatives and securities exchange network, providing trading solutions across multiple asset classes globally [4]. - The company is committed to building a trusted and inclusive global marketplace to support sustainable financial futures [4].

Core Points - Cboe Global Markets, Inc. has declared a quarterly cash dividend of $0.72 per share for Q3 2025, marking a 14% increase from the previous quarter's dividend of $0.63 per share [1][4] - The dividend is scheduled to be paid on September 15, 2025, to stockholders of record as of August 29, 2025 [1] Company Overview - Cboe Global Markets is recognized as the world's leading derivatives and securities exchange network, providing advanced trading, clearing, and investment solutions globally [2] - The company offers trading solutions across multiple asset classes, including equities, derivatives, and foreign exchange, in North America, Europe, and Asia Pacific [2] - Cboe is committed to fostering a trusted and inclusive global marketplace that supports sustainable financial futures [2]

Core Insights - Cboe Global Markets reported significant increases in trading volumes across various segments for July 2025 compared to July 2024, indicating strong market activity and growth in multiple asset classes [1][5][9] Trading Volume Statistics - Average Daily Trading Volume (ADV) for multiply-listed options reached 12,215 thousand contracts, a 9.6% increase year-over-year from 11,145 thousand contracts in July 2024 [4] - Index options saw an 8.0% increase in ADV, totaling 4,469 thousand contracts compared to 4,140 thousand contracts in July 2024 [4] - U.S. equities on-exchange matched shares increased by 39.9% to 1,790 million shares from 1,280 million shares in July 2024 [4] - U.S. equities off-exchange matched shares surged by 84.8% to 141 million shares from 76 million shares in July 2024 [4] - European equities trading volume rose by 35.3% to €12,490 million from €9,229 million in July 2024 [4] - Cboe Europe Equities achieved record market shares of 26.6% for overall trading and 34.7% for continuous trading in July [5] Notable Records - Cboe's S&P 500 Index (SPX) options set a monthly volume record in zero-days-to-expiry (0DTE) trading, with an ADV of 2.2 million contracts [9] - SPX options recorded their third most active trading day on July 31, with 4.8 million contracts traded [9]