Cboe's Quarterly Profit Surges as Hedging Activity Soars

Cboe Global Markets, Inc. (CBOE), the world's leading derivatives and securities exchange network, reported a significant rise in adjusted net income for the fourth quarter of 2024, driven by increased options trading volumes and revenue. The company's strong performance was primarily attributed to the surge in hedging activity, particularly in options trading, as investors sought to manage risks associated with economic and geopolitical uncertainties.

In the fourth quarter, Cboe's options trading segment revenue grew by 3% compared to the same period in 2023, while futures revenue fell by 7%. The company's average daily volumes in total company options increased to 15.7 million contracts in the reported quarter, from 14.9 million a year earlier. This growth in options trading volumes contributed to Cboe's market share in the options market, which reached 30.4% in the fourth quarter of 2024.

Cboe's CEO, Fredric Tomczyk, attributed the robust options volumes to the strong demand for hedging strategies from investors. He noted that the results were notable in that each category, Derivatives Markets, Data Vantage, and Cash and Spot Markets, contributed to the fourth-quarter and full-year growth.



Cboe's fourth-quarter net revenue rose 5% to $524.5 million from a year earlier, while revenue from North America equities rose 10% to $94.9 million. The company's adjusted net income allocated to common shareholders came in at $221.2 million, or $2.10 per share, in the three months ended December 31, compared with $218.8 million, or $2.06 per share in the year-ago period.

Cboe's strong performance in the fourth quarter of 2024 reflects the company's ability to adapt to evolving market dynamics and increased competition. By expanding access to options for investors across the globe, launching new products and services, and strengthening its global presence, Cboe has maintained its competitive edge in the face of changing market conditions.

As investors continue to seek hedging strategies to manage risks associated with economic and geopolitical uncertainties, Cboe is well-positioned to drive growth and access to U.S. options markets. The company's strategic initiatives, such as expanding access to options for retail investors, launching new products and services, and strengthening its global presence, will enable Cboe to maintain its competitive edge and continue to grow in the face of evolving market dynamics and increased competition.



In conclusion, Cboe Global Markets' strong performance in the fourth quarter of 2024 is a testament to the company's ability to adapt to changing market conditions and capitalize on the surge in hedging activity, particularly in options trading. As investors continue to seek risk management strategies, Cboe is well-positioned to maintain its competitive edge and drive growth in the U.S. options market.