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Cboe Global's (CBOE) August Volume Increases Year Over Year

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Zacks Equity Research
·3 min read
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Cboe Global Markets’ CBOE average daily volume (“ADV”) in August 2020 of 9.7 million contracts increased 10.7% year over year, driven by 13.3% higher Options contracts, partly offset by 50.9% lower Futures ADV. Though U.S. Equities volumes rose year over year, European Equities and Global Forex volumes declined.

Total contracts for the month were 205 million, up 5.7% year over year. Of this, Options contracts increased 8.2% to 201 million, while Futures dropped 53.1% to 3.7 million. Options ADV was 9.6 million whereas Futures ADV was 0.1 million.

Subsequently, total volumes of the U.S. Equities Matched were 28.7 billion shares, up 2.6% year over year. Moreover, European Equities Matched reflected a 29.3% decline year over year to €103.9 billion. Global FX Matched was down 17.2% to $602.7 billion.

CBOE Global should continue witnessing solid average daily volumes given its compelling product portfolio. It should drive transaction fees, which account for the lion’s share of total operating revenues.

This Zacks Rank #3 (Hold) derivatives exchange in the United States has a strong market position and global reach driven by strength in its proprietary products, primarily SPX options, VIX options and VIX futures.

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

Notably, Cboe EDGX Options Exchange was up 124% from August 2019. ADV at Cboe EDGX Equities Exchange was up 67% from August 2019.

Shares of CBOE Global Markets have underperformed its industry year to date. The stock has lost 25.2% against the industry’s growth of 2.6%. Nevertheless, the solid fundamentals like diversified product portfolio and strong liquidity position should help the stock bounce back.

Recently, Nasdaq NDAQ reported volumes for the month of August. While U.S. equity options volume improved 36.9% year over year to 215 million contracts, European options and futures volume declined 34.7% year over year to 4.9 million contracts.

MarketAxess Holdings MKTX reported total monthly trading volume of $450 billion for August 2020, which reflected a whopping improvement of 160.4% year over year.

Intercontinental Exchange’s ICE futures & options ADV was 4.6 million, down 17.5% year over year.

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

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Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report
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