The company saw strong demand for its derivatives products, as traders rushed to secure their positions amid geopolitical crises and economic volatility that triggered massive market swings across asset classes.
CBOE reported a 9% rise in fourth-quarter net revenue to $499 million from a year earlier, driven by a 21% jump in its futures segment and a 15% growth in options.
Revenue per contract in options increased 20%, while total average daily volumes rose 2% from a year earlier.
Exchange operators’ gains from trading were partly offset by a dearth in new listings as geopolitical pressures and the U.S. Federal Reserve’s aggressive interest rate hikes to curb inflation induced a two-year-long lull in the IPO market.
Some investors are expecting a turnaround in capital markets on mounting bets of a soft-landing — where inflation is controlled and chances of a recession are low — with social media firm Reddit, cloud security company Rubrik and software startup ServiceTitan all expecting to go public this year.
On an adjusted basis, Chicago-based CBOE posted a profit of $218.8 million, or $2.06 per share, for the three months ended Dec. 31, compared with $192.2 million, or $1.80 per share, a year earlier.
Cboe’s strong quarterly profit follows a similar upbeat performance from peer Nasdaq that reported a 24.6% growth in profit on Wednesday.
Source: Economy - investing.com
