Wall Street exchanges including CME Group, Nasdaq and NYSE parent Intercontinental Exchange reported strong quarterly results, buoyed by higher volumes.
However, Cboe’s total options market share fell from 30.9% to 29.2%.
The company offers stock and derivatives trading platforms, including products tied to the VIX volatility index, often called the market’s “fear gauge.”
The options trading business’ net revenue rose 34% to $433 million in the quarter, while total average daily volume of options rose 24%.
The exchange is streamlining its operations to focus on fast-growing areas such as prediction markets and crypto, amid increasing competition for market share. Reuters reported earlier this week that Cboe is in the early stages of exploring a product that would use an options structure to offer all-or-nothing payouts, a move that would position it to compete with fast-growing prediction market platforms. The exchange is also narrowing its focus on core offerings with recent plans to exit its operations in Australia and Canada, a move that followed its decision to wind down its Japanese equities business last year. Adjusted earnings of $3.06 per share beat the average analyst expectation of $2.94, according to data compiled by LSEG. Revenue rose to a record $671.1 million, also exceeding expectations of approximately $660 million. Shares of the exchange fell about 2.3% in morning trading.
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