Cboe Sees Solid Q3 Overall, But FX Revenues Fall Slightly

The options exchange reported a nine percent uptick in total revenues.

Cboe Global Markets, Inc. has published its financial results for the third quarter of 2019 this Friday, with higher trading volumes resulting in an uptick in revenues and operating income.

Total revenues for Cboe, which is the largest options exchange in the United States, came in at $294.0 million for the third quarter. When measuring this against the same quarter of the previous year, which had total revenues of $270.5 million, revenues have increased nine percent year-over-year.

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According to the report released today, the uptick in revenues was primarily driven by higher trading volume in its proprietary products, including SPX options and VIX options and futures.

Total operating expenses were also up on a yearly comparison. In particular, operating expenses increased by two percent, from $144.4 million in the third quarter of 2018, up to $146.6 million in the most recent quarter.

Operating income in the third quarter jumped by 17 percent year-on-year, rising from $126.1 million in Q3 of 2018 to $147.4 million in the third quarter of 2019.

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Global FX revenues fall YoY on Cboe

Taking a look at Cboe’s global foreign exchange net revenue, the company reported a figure of $13.1 million in the third quarter. This represents a decline of four percent of $0.5 million year-on-year.

The drop in net revenues was largely driven by lower net transaction fees compared to the third quarter of 2018. The average daily notional value (ADNV) traded on the Cboe FX platform was $30.3 billion for the quarter, down 12 percent from last year’s third quarter.

Commenting on the results, Edward T. Tilly, Cboe Global Markets Chairman, President and Chief Executive Officer, said: “I am pleased to report strong third-quarter results, primarily driven by higher trading volume in our suite of proprietary products compared to the third quarter of 2018.”

“We remained focused on growing our proprietary products, while also completing our final technology migration to our proprietary technology, marking a major step forward for our company and positioning us for exciting future growth.”

“The integration not only provides our customers with a single, world-class trading experience across all Cboe equities, options, and futures markets, but also lays the foundation for new innovations. We look forward to building upon the solid foundation in place and delivering increased value to our customers and our shareholders.”

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