Cboe has reported a strong second quarter of 2024, with a record net revenue of $514 million – up 10% year-on-year – thanks to solid performances across the exchange’s ecosystem.
Fredric Tomczyk
In particular, cash and spot markets were a key driver of the increased revenue, with significant improvement and net revenues up 15% year-on-year. Derivatives trends were also impressive, up 11% since the same time last year.
Fredric Tomczyk, Cboe Global Markets’ chief executive, said: “The second quarter results illustrate the durability of the Cboe business model […] I am incredibly pleased with the progress we continue to make as we work through our strategic review.
“Each component of our exchange ecosystem performed well during the second quarter, and we are well positioned for the second half of the year.”
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When it came to options, the exchange posted a net revenue of $306.7 million, up $23.5 million – 8% – since Q2 2023. Notably, Cboe’s options exchanges had total market share of 31.2% in the quarter, compared to 33.3% a year ago, which the exchange put down to “a result of lower multi-list market share as compared to the second quarter of 2023”.
Futures net revenue also increased, though to a lesser degree, with the area up $5.6 million year-on-year thanks to a reported increase in net transaction and clearing fees.
In addition, Cboe’s global FX record net revenue increased 11% for the same reasons.
The exchange’s FX market share was 20.2% in Q2 2024, up from 19.5% a year ago.
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Elsewhere, North American equities also increased by 8%, with a record net revenue of $98.3 million. This was also down to higher net transaction and clearing fees, as well as proprietary market data fees, and access and capacity fees.
“Net transaction and clearing fees increased by $7.0 million, or 25 percent, compared to the second quarter of 2023. The increase was driven by stronger US exchange and off-exchange net capture rates, as well as stronger volumes and market share in Canadian Equities as compared to the second quarter of 2023,” explained the exchange.
In April this year, Cboe announced the realignment of its digital asset business, confirming plans to transition digital asset derivatives trading and clearing into existing derivatives and clearing business lines.
The move is dependent on a regulatory review, and has contributed to a winding down of trading on the Cboe Digital spot digital asset trading market.
Speaking to the future outlook, Jill Griebenow, Cboe Global Markets’ executive vice president and chief financial officer, asserted: “Moving forward, we anticipate organic total net revenue growth to finish in the 6-8% range, up from our prior guidance of the higher end of 5-7%. We are reaffirming our Data and Access Solutions organic net revenue growth range of 7-10%, but anticipate finishing at the lower end of the guidance range.
“Additionally, we are reaffirming our full year adjusted operating expense guidance range of $795 to $805 million. We have produced strong results for the first half of 2024 and look forward to delivering durable returns for shareholders in the quarters ahead.”