Operating Revenue Increases 9% at CBOE - Reports Q3 Results
- Leading Options trading venue, the Chicago Board of Options Exchange has announced third quarter earning results, figures were in the green across its metrics with operating revenue performing better than 2013 figures.
Trading venues from across the globe have been piling in positive operating metrics as traders enter the final quarter of the year. The largest Options Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term in the US has reported strong earnings in its latest data release.
The listed trading venue saw operating revenue increase 9% from 2013 data. Overall, the venue benefited from a recent outburst in activity that boosted trading volumes and revenues.
The CBOE's earnings beat analysts' estimates as a post-summer revival in global markets supported trading volumes. The US-based exchange reported that its net income in the third-quarter increased by 18% to $48.1 million, (or 57 cents per share), from $41 million, (or 47 cents), from figures reported a year earlier. The venue also reported its adjusted earnings, which were also 57 cents per share. The highlight for the CBOE was its operating revenue, which rose to $148.9 million, up from $136.7 million a year earlier.
Edward T. Tilly, CBOE Holdings Chief Executive Officer, spoke about the results in a statement, he said: “We are pleased to start the fourth quarter with record trading volume for the month of October in VIX options and VIX futures, driven by heightened market Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term and our strategic initiatives to broaden our customer base and extend our reach globally, particularly through our extended trading hours for VIX futures.”
The earnings reflect a change in market sentiment coming off a bleak summer, as well as from the revised strategy the venue implemented in August to bolster activity by reducing commissions and fees. The CBOE filed its trading volumes data in the Q3 report.
Edward Tilly
Its average daily volumes during the quarter rose to 4.952 million contracts from 4.615 million a year earlier. The increase comes after CBOE said in August that it would cut expenses due to weak trading volumes during the second quarter.
“Our strong third-quarter results reflect improved trading volume both sequentially and year-over-year across each of our product categories, as more normal levels of volatility returned to the market,” added Mr Tilly.
The CBOE’s flagship VIX index, a popular measure of the implied volatility of S&P 500 index options, saw its trading hours increase to 24 hour trading as traders look to take advantage of price movements in the instrument. The VIX is widely earmarked as the fear index of the markets as it measures investor sentiment and represents one measure of the market's expectation of volatility over a 30-day period.
Trading venues from across the globe have been piling in positive operating metrics as traders enter the final quarter of the year. The largest Options Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term in the US has reported strong earnings in its latest data release.
The listed trading venue saw operating revenue increase 9% from 2013 data. Overall, the venue benefited from a recent outburst in activity that boosted trading volumes and revenues.
The CBOE's earnings beat analysts' estimates as a post-summer revival in global markets supported trading volumes. The US-based exchange reported that its net income in the third-quarter increased by 18% to $48.1 million, (or 57 cents per share), from $41 million, (or 47 cents), from figures reported a year earlier. The venue also reported its adjusted earnings, which were also 57 cents per share. The highlight for the CBOE was its operating revenue, which rose to $148.9 million, up from $136.7 million a year earlier.
Edward T. Tilly, CBOE Holdings Chief Executive Officer, spoke about the results in a statement, he said: “We are pleased to start the fourth quarter with record trading volume for the month of October in VIX options and VIX futures, driven by heightened market Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term and our strategic initiatives to broaden our customer base and extend our reach globally, particularly through our extended trading hours for VIX futures.”
The earnings reflect a change in market sentiment coming off a bleak summer, as well as from the revised strategy the venue implemented in August to bolster activity by reducing commissions and fees. The CBOE filed its trading volumes data in the Q3 report.
Edward Tilly
Its average daily volumes during the quarter rose to 4.952 million contracts from 4.615 million a year earlier. The increase comes after CBOE said in August that it would cut expenses due to weak trading volumes during the second quarter.
“Our strong third-quarter results reflect improved trading volume both sequentially and year-over-year across each of our product categories, as more normal levels of volatility returned to the market,” added Mr Tilly.
The CBOE’s flagship VIX index, a popular measure of the implied volatility of S&P 500 index options, saw its trading hours increase to 24 hour trading as traders look to take advantage of price movements in the instrument. The VIX is widely earmarked as the fear index of the markets as it measures investor sentiment and represents one measure of the market's expectation of volatility over a 30-day period.