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Cboe Global (CBOE) February Volumes Disappoint, Down Y/Y

Zacks Equity Research

Cboe Global Markets, Inc. CBOE reported average daily volume (ADV) for February 2019. Total ADV of 6.9 million contracts plunged 34.9% year over year with each business segment witnessing a weak performance.

Total contracts for the month were 162.1 million, having declined nearly 35% year over year. Of this, options contracts decreased about 34% to 127.8 million while futures plummeted 58.3% to 3.8 million. Options ADV was 6.7 million whereas Futures ADV was 0.2 million.

Subsequently, total volumes of the U.S. Equities Matched came in at 21.8 billion shares, down 31.5% year over year. Moreover, European Equities Matched reflected a 19.1% deterioration year over year to €188.8 billion whereas Global FX Matched fell 21.9% to $690.4 billion.

Nonetheless, CBOE Global Markets has been witnessing solid average daily volumes over a considerable period of time, given its compelling product portfolio. This, in turn, has been driving transaction fees higher, which accounted for the lion’s share of total operating revenues.

The Zacks Rank #3 (Hold) derivatives exchange in the United States has a strong market position and a global reach with strength in its proprietary products, primarily SPX options, VIX options and VIX futures. In 2018, the company successfully migrated C2 options exchange and Cboe Futures Exchange to the Bats platform. Moreover, the company has targeted Oct 7, 2019 for the migration of Cboe Options Exchange. This should in fact help the company retain its solid revenue growth momentum.

This apart, the company is committed toward building a strategic economic market model via technological advancements. Also, an upgrade of a wide array of products and services will assist all exchanges to stay afloat amid the changing industry dynamics.

Shares of CBOE Global Markets have underperformed its industry in a year’s time. The stock has lost 18.4% versus the industry’s increase of 5%.


Recently, securities exchanges, namely CME Group Inc. CME, Nasdaq Inc. NDAQ and MarketAxess Holdings Ltd. MKTX also reported respective volumes. CME Group recorded an ADV of 19 million contracts per day, down 27.3% year over year while Nasdaq posted options volume of 121 million contracts for February, down 21.9% year over year. MarketAxess’ trading volume came in at $167 billion.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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