Exchange operator Cboe profit rises as market volatility lifts trading volumes
2023.05.05 08:54
© Reuters. People walk by the Chicago Board Options Exchange (CBOE) Global Markets headquarters building in Chicago, Illinois, U.S., September 19, 2018. REUTERS/Michael Hirtzer
(Reuters) -Cboe Global Markets reported a rise in first-quarter profit on Friday, as the exchange operator’s trading volumes swelled on heightened market fluctuations amid a banking crisis and rising interest rates.
Investors turned to the company’s proprietary products, such as options linked to the volatility index and the , as they rejigged portfolios to hedge against risks of an economic uncertainty.
Revenue from its options segment grew 28% to $280.7 million.
The Chicago-based company, which provides trading platforms for equities, foreign exchange and derivative products across markets in different regions, saw a 13% rise in net revenue to $471.4 million.
The company reported a net income of $172.6 million, or $1.63 per share, for the quarter ended March 31, compared with $109.2 million, or $1.02, a year earlier.
Cboe’s results wrapped up a strong quarter for exchange operators. Earlier this week, New York Stock Exchange-parent Intercontinental Exchange (NYSE:) Inc reported upbeat results.
Last month, both Nasdaq Inc and CME Group Inc (NASDAQ:) also beat profit estimates.
