Core Insights - Cboe Global Markets reported record financial results for Q3 2025, with net revenue of $605.5 million, diluted EPS of $2.85, and adjusted diluted EPS of $2.67, reflecting year-over-year growth of 14% and 20% respectively [2][13] - The company is undergoing a strategic realignment to focus on core strengths and growth opportunities, including the initiation of a sales process for Cboe Australia and Cboe Canada, and exiting U.S. and European Corporate Listings [3][8] Financial Performance - Total net revenue for Q3 2025 increased by 14% compared to Q3 2024, driven by strong performance in derivatives, cash and spot markets, and Data Vantage [2][19] - Adjusted operating expenses for Q3 2025 were $210.2 million, up from $204.0 million in Q3 2024, primarily due to increased compensation and benefits [16] - The effective tax rate for Q3 2025 was 30.1%, up from 29.3% in Q3 2024, influenced by the recognition of uncertain tax positions [17] Business Segment Performance - Options segment achieved record net revenue of $380.8 million, a 19% increase from Q3 2024, supported by a 26% rise in total options average daily volume [21] - North American Equities net revenue rose by 6% to $103.5 million, while European and Asia Pacific segment revenue increased by 24% to $69.1 million [19][32] - Futures segment revenue decreased by 22% to $29.6 million, attributed to a decline in net transaction and clearing fees [32] Strategic Initiatives - The company is increasing its 2025 organic total net revenue growth guidance to 'low double-digit to mid-teens' from 'high single-digit' [8][33] - Cboe is also lowering its full-year adjusted operating expense guidance to a range of $827 million to $842 million [8][33] - The strategic realignment aims to enhance the company's position in the derivatives market and capitalize on emerging opportunities [3][8] Market Position - Cboe's options exchanges held a market share of 30.9% in Q3 2025, up from 30.5% in the same period last year [21] - The company’s U.S. Equities exchanges experienced a decline in market share to 9.8% from 10.9% in Q3 2024, reflecting increased off-exchange trading [21][32] - Cboe's European Equities market share improved to 25.4% from 23.8% year-over-year [32]

Core Insights - Cboe Global Markets has appointed JJ Kinahan as Senior Vice President, Head of Retail Expansion and Alternative Investment Products, to lead a new business vertical focused on alternative investment products for retail customers [2]. Group 1: Leadership and Strategy - JJ Kinahan will oversee product strategy, regulatory alignment, and market execution for innovative offerings such as event-based trading, prediction markets, crypto derivatives, and tokenized instruments [2]. - Rob Hocking, Global Head of Derivatives at Cboe, emphasized the significant opportunity for growth in areas where Cboe can lead and differentiate, highlighting Kinahan's exceptional track record and commitment to investor education [2]. - Craig Donohue, CEO of Cboe, noted that the company has strengthened its leadership team with strategic hires, positioning Cboe to capitalize on emerging opportunities in retail-oriented digital, crypto, and event markets [2]. Group 2: Background of JJ Kinahan - Prior to joining Cboe, Kinahan was the CEO of IG US Holdings, overseeing multiple trading platforms, and has held significant roles at TD Ameritrade and Charles Schwab [2]. - Kinahan's experience includes being a market maker at the Chicago Board Options Exchange and positions at ING Bank and Van Der Moolen, showcasing his extensive background in the financial industry [2]. Group 3: Cboe's Market Position - Cboe Global Markets is recognized as a leading derivatives and securities exchange network, providing trading solutions across multiple asset classes globally [3]. - The company is committed to building a trusted and inclusive global marketplace, enabling individuals to pursue sustainable financial futures [3].

Financial Data and Key Metrics Changes - Third quarter adjusted earnings per share were $1.71, up 10% year over year, marking the best third quarter in the company's history [5] - Net revenues totaled $2.4 billion, supported by a 5% increase in recurring revenue [5] - Adjusted operating expenses for the third quarter were $981 million, with disciplined cost management contributing to this figure [5][6] - The adjusted tax rate for the third quarter was 21%, benefiting from prior year tax audit settlements [6] Business Line Data and Key Metrics Changes - Exchange segment net revenues reached $1.3 billion, with transaction revenue totaling $876 million [7] - Recurring revenues in the Exchange segment totaled a record $389 million, up 7% year over year, driven by a 9% growth in exchange data services [8] - Fixed income and data services segment revenues totaled a record $618 million, with transaction revenues of $123 million [9] - Mortgage Technology revenues totaled $528 million, up 4% year over year, with recurring revenues at $391 million [11] Market Data and Key Metrics Changes - Open interest across futures and options surged 16% year over year, with energy futures up 14% and interest rate futures climbing 37% [8] - Global gas portfolio volumes increased 20% year to date, with significant growth across North America, Europe, and Asia [20] - Power markets saw volumes up 21% year to date, reinforcing the synergy between gas and power markets [20] Company Strategy and Development Direction - The company is focusing on AI to enhance operational efficiency and deliver analytical insights, with the ICE Aurora platform being a key initiative [15][18] - Strategic investments in data center infrastructure are aimed at supporting increased demand for data and AI integration [10][24] - The company is positioning itself to leverage blockchain technology through its investment in Polymarket, aiming to enhance its clearing and trading capabilities [31][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic conditions, highlighting strong demand for risk management tools [19][40] - The company anticipates continued growth in recurring revenues and is focused on extending its track record of growth into 2026 [14][40] - Management acknowledged the challenges posed by regulatory environments but remains optimistic about the evolution of markets and technology integration [32][36] Other Important Information - The company returned $674 million to shareholders during the quarter, including approximately $400 million in share repurchases [6] - The company reduced debt outstanding by roughly $175 million, lowering gross leverage to just over 2.9 times EBITDA [6] Q&A Session Summary Question: Impact of AI in mortgage origination and servicing - Management highlighted that AI has transformed their platforms from systems of record to systems of intelligence, enhancing operational efficiencies and sales [44][46] Question: Short-term dynamics regarding Flagstar and PennyMac - Management noted that while Flagstar's exit will impact revenue, the overall sales performance remains strong, with new client acquisitions expected to offset losses [49][53] Question: Details on Polymarket's data licensing and blockchain technology - Management emphasized the innovative aspects of Polymarket's smart contracts and the potential for increased trading efficiency through 24/7 collateral management [60][62] Question: Clarification on fourth quarter revenue guidance - Management clarified that the guidance referred to recurring revenue levels remaining stable, with typical seasonal impacts expected [71][73] Question: Long-term outlook on competition in the mortgage space - Management expressed confidence in their independent, well-capitalized position, emphasizing the importance of being a neutral technology provider [75][78]

Financial Data and Key Metrics Changes - Third quarter adjusted earnings per share were $1.71, up 10% year over year, marking the best third quarter in the company's history [4] - Net revenues totaled $2.4 billion, supported by a 5% increase in recurring revenue [4] - Adjusted operating expenses for the third quarter were $981 million, with disciplined cost management contributing to this figure [4][5] - The adjusted tax rate for the third quarter was 21%, benefiting from prior year tax audit settlements [5] Business Line Data and Key Metrics Changes - Exchange segment net revenues reached $1.3 billion, with transaction revenue at $876 million [6] - Recurring revenues in the Exchange segment totaled a record $389 million, up 7% year over year, driven by a 9% growth in exchange data services [8] - Fixed income and data services segment revenues were a record $618 million, with transaction revenues of $123 million [9] - Mortgage Technology revenues totaled $528 million, up 4% year over year, with recurring revenues at $391 million [11] Market Data and Key Metrics Changes - Open interest across futures and options surged 16% year over year, with energy futures up 14% and interest rate futures climbing 37% [7][19] - Global gas portfolio volumes increased 20% year to date, with significant growth across North America, Europe, and Asia [20] - Power markets saw volumes up 21% year to date, reinforcing the synergy between gas and power markets [20] Company Strategy and Development Direction - The company is focusing on AI integration to enhance operational efficiency and customer solutions, with the ICE Aurora platform being a key initiative [14][15] - Strategic investments in data center infrastructure are aimed at supporting business growth and meeting increasing customer demand [25] - The company is positioning itself to leverage blockchain technology and improve collateral management through its investment in Polymarket [32][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic conditions and maintain growth, citing strong performance in the third quarter [41] - The company anticipates continued growth in recurring revenues and transaction volumes, driven by strategic investments and market demand [20][41] - Management highlighted the importance of maintaining high standards in listings and the impact of regulatory changes on market dynamics [9][34] Other Important Information - The company returned $674 million to shareholders during the quarter, including approximately $400 million in share repurchases [5] - The company expects fourth quarter adjusted operating expenses to be in the range of $1.005 billion to $1.015 billion [5][6] Q&A Session Summary Question: Impact of AI in mortgage origination and servicing - Management discussed the transition of mortgage platforms to systems of intelligence, enhancing operational efficiencies and compliance [45][51] Question: Short-term dynamics regarding Flagstar and PennyMac - Management noted that Flagstar's exit would impact revenues, while PennyMac's contribution would not be felt until 2028 [64][66] Question: Details on Polymarket's data licensing and blockchain technology - Management emphasized the innovative architecture of Polymarket and its potential to enhance ICE's workflows and trading efficiency [70][86]

Group 1 - The Hong Kong Stock Exchange (HKEX) has seen positive market reactions since launching its technology listing service in May, allowing for greater flexibility for companies to submit applications confidentially. Approximately 300 companies have applied for listings, with nearly half from the technology sector, followed by healthcare and biotechnology [1] - The HKEX aims to continue optimizing its listing processes to enhance flexibility for companies, and it is considering potential improvements to the dual-class share structure introduced seven years ago [1] - The HKEX's office in Riyadh, Saudi Arabia, has commenced operations, which is expected to strengthen communication and collaboration with regional partners. The first consumer company headquartered in the Middle East plans to list in Hong Kong, indicating initial success for the exchange [1] Group 2 - The HKEX emphasizes that it operates as a rules-based exchange, with the fundamental principle that listed companies must have substantial business operations. The exchange is currently researching virtual currency, focusing on how to optimize or advance market infrastructure related to virtual assets [2]

Core Insights - Investors today have a wide range of options for investment, including private markets and cryptocurrencies, making traditional stocks seem outdated [1][2] - Exchanges are increasingly collaborating rather than competing, reflecting a shift in the investment landscape [2] Market Performance - Stock markets are performing well, with indices reaching all-time highs, driven by retail investors engaging with popular companies and investment trends [3] - The U.S. market is showing signs of recovery, with more companies looking to go public, including private equity and government-backed firms [4] IPO Trends - Saudi Arabia has seen a significant increase in IPOs, rising from 8-9 annually to around 40-45 [5] - Hong Kong has completed nearly 80 IPOs recently, indicating a recovery in investor confidence regarding Chinese stocks [5] Investor Behavior - The rise in global IPOs is attributed to investors seeking diversification to mitigate market volatility caused by geopolitical uncertainties and protectionist policies [6] - There is a strong demand for investments in sectors like AI, semiconductors, and green technology, alongside a new trend in consumer products, exemplified by the popularity of Labubu dolls [6]

Market Disruption - India's largest commodity exchange temporarily suspended trading due to a technical problem [1] - Market participants were unable to execute orders or access live prices [1]

Core Insights - Deutsche Boerse reported a 6% increase in third-quarter net profit, surpassing analysts' expectations [1] - The company reaffirmed its forecasts for the year despite facing low trading volumes [1] Financial Performance - The net profit for the third quarter rose by 6%, indicating strong financial performance [1] - Analysts had anticipated lower results, highlighting the company's better-than-expected performance [1] Future Outlook - Deutsche Boerse is maintaining its forecasts for the year, suggesting confidence in its business strategy and market conditions [1] - The company is navigating challenges related to low trading volumes but remains optimistic about future performance [1]

Core Insights - CME Group Inc. is recognized as a dominant and highly profitable exchange, demonstrating strong growth and robust margins [1] Group 1: Company Performance - CME Group Inc. has been identified as a powerhouse in the exchange sector, continuing to deliver strong growth [1] - The company maintains robust profit margins, indicating effective operational efficiency [1] Group 2: Investment Opportunities - The service "Value in Corporate Events" offers insights into major corporate events such as IPOs, mergers & acquisitions, and earnings reports, aiming to identify the best investment opportunities [1]

Core Insights - CME Group Inc. is recognized as a dominant and highly profitable exchange, demonstrating strong growth and robust margins [1] Group 1 - CME Group Inc. continues to perform well, maintaining its status as a powerhouse in the exchange industry [1] - The company is noted for delivering strong growth while achieving high profit margins [1] - The investing group "Value In Corporate Events" focuses on identifying opportunities in major corporate events such as IPOs, mergers & acquisitions, and earnings reports [1]