The CBOE has just announced its third-quarter results. The company highlighted during its earnings presentation that its foreign exchange division continued performing strongly.
When compared to the same quarter of last year, the CBOE marked an increase in revenues. The result is in tandem with better trading volumes.
The typically higher commissions related to emerging markets FX transactions also helped. The third quarter of the year has been materially more active for EMFX pairs when compared to majors.
Global FX Revenues Up 20%
Global FX revenue of the CBOE increased by 20 percent to $13.6 million. The figure is lower when compared to the second quarter of the year by around six percent. The seasonality of volatility in the foreign exchange market appears to be playing a major role here.
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Looking at trading volumes, the average daily notional metric totaled $34.6 billion for the quarter. The figure was up 19 percent from a year ago, but lower by 10 percent when compared to Q2.
The CBOE posted a “net capture per one million dollars traded” of $2.63 per million. The figure refers to net transaction fees divided by the product of one-thousandth of the average daily notional volume traded on the Cboe FX market and the number of trading days, divided by two adjusting for buyers and sellers.
The Market Share of the CBOE stood more or less in line with the previous quarter at 14.8 percent. The figure is higher by 1.9 percent when compared to a year ago and down from a peak of 15.3 percent in Q1.
The market share represents the volume of CBOE FX divided by the total volume of publicly reporting spot FX venues. Aside from itself, the company includes in its calculations NEX, Reuters/FXall, and FastMatch.