Cboe Global Markets: Navigating Uncertainty with Options and Technology

As we step into 2025, Cboe Global Markets, Inc. (CBOE) has reported strong fourth quarter and full year results, capping off another record-breaking year. The financial services company, which operates as an options exchange worldwide, saw net revenue growth of 8% to a record $2.1 billion and adjusted diluted earnings per share, 10% to a record $8.61. Let's delve into the key drivers behind these impressive results and explore how Cboe is positioning itself for long-term growth and success.



Cboe's derivatives business delivered a solid year with organic net revenue increasing 8%, wrapping up another record year of option volume growth. Total volume across Cboe's four options exchanges was 3.8 billion contracts traded in 2024, with an average daily volume (ADV) of nearly 15 million contracts traded, marking a fifth consecutive record-breaking year. The company saw record volume in SPX and fixed options, as investors turned to Cboe's S&P 500 volatility toolkit to help navigate markets. ADV and SPX options reached a record 3.1 million contracts traded, while ADV and VIX options hit a record 830,000 contracts traded.



Cboe's Data Vantage business finished the year strong, driving a 7% increase in organic net revenue in 2024. The technology investments made to further optimize access, data, and insights for the Data Vantage business drove positive results for Cboe and its customers. The company continues to see durability in this business as it leverages its global footprint and technology enhancements to drive growth.

Cboe's cash and spot markets performed well during the year, with organic net revenue increasing 10%, driven by healthy trading volumes and growth across all of its regional equities markets. Overall, it was an excellent year for both transaction and non-transaction growth, capped by a strong fourth quarter for Cboe.

As we entered 2025, Cboe is well-positioned to benefit from the secular trends that are expected to continue shaping the markets globally. The rising popularity and adoption of options trading, the continued rise of the retail investor, the globalization of markets, and the rapidly evolving area of technology and data management, including newer technologies like artificial intelligence, all bode well for Cboe's long-term growth prospects.

Cboe's strategic focus on secular trends, such as the rising popularity of options trading and the globalization of markets, positions the company for long-term growth and success. The company's derivatives business, which includes options, has shown resilience and growth, supported by a growing customer base, demand for access to the US market, and an increasing demand for options. This trend is evident in the record-breaking year for the options market in 2024, with more investors embracing the utility and versatility of options. Cboe's diverse suite of products, including SPX and VIX options, enables market participants to navigate uncertainty and manage risk effectively.

Moreover, Cboe's investment in its exchange technology platform, Cboe Titanium, signals an exciting new chapter in the company's evolution and commitment to delivering best-in-class trading technology for its market participants around the globe. This platform enables innovation across Cboe's markets, products, data, and insights, all on a unified and scalable global technology platform. In every new market that Cboe has entered, its market share has improved following a migration to Cboe technology.

In conclusion, Cboe Global Markets' strong fourth quarter and full year results, coupled with its strategic focus on secular trends and investments in technology, position the company for long-term growth and success. As markets evolve in response to changing events, Cboe's diverse suite of products and commitment to delivering best-in-class trading technology will enable it to continue driving growth and capturing market share.