Net revenue

Cboe’s Global FX Net Income Climbs 20% to $16.6 Million in Q2 2022

The Chicago Board of Options Exchange (Cboe) Global Markets, operator of various options, stocks, futures and forex markets, reported 20% growth in global foreign exchange net income in the second quarter of 2022 .

Revenue for the last quarter was $16.6 million, Cboe disclosed in a press release on Friday.

The release details the company’s second quarter 2022 financial results.

According to Cboe, this growth is the result of “higher net transaction and clearing costs”.

However, these net revenues represent a decline of approximately 3% in revenue from the $17.1 million generated in the first quarter of this year.

Cboe also said the average daily notional value of forex trading on Cboe FX, its institutional forex trading market, peaked at $39.6 billion for the quarter.

This figure represents a 22% jump from the platform’s posting in the second quarter of 2021.

Additionally, net capture per million dollars of currency traded on Cboe FX during the quarter was $2.71, Cboe said.

This is a flat performance as the net catch per million dollars is the same figure generated at the same time last year.

Based on a broad forex market comparison, the market infrastructure provider said Cboe FX held 17% market share.

This is more than the 16.3% market share the trading platform achieved during the second quarter of 2021.

Additionally, the figure is only a marginal drop from Cboe FX’s performance in Q1 2022.

In the first quarter of this year, the company said Cboe FX controlled 17.3% market share.

Broader Market Results

In the second quarter of 2022, Cboe Global Markets generated net revenue of $424 million, up 21% from the first quarter of 2021.

However, this net income is only 1.4% higher than the company’s first quarter, as it generated $418.1 million during that period.

Additionally, while Cboe’s adjusted diluted earnings per share (EPS) rose 21% to $1.67 during the second quarter of 2022, its diluted EPS plummeted 278% to $1.74.

The multi-asset market operator said this is “primarily due to the impairment of goodwill recognized in the digital reporting unit”.

“Exceptional first half of 2022”

Commenting on the financial statements, Edward Tilly, Chairman and CEO of Cboe Global Markets, praised the company’s second quarter result.

“Cboe delivered strong second quarter results to close out an outstanding first half of 2022. Activity in our ecosystem – cash, data and derivatives – was robust,” Tilly said.

The company’s executive vice president, chief financial officer and treasurer, Brian Schell, also praised the performance, adding that Cboe was adjusting its forecast for total organic net revenue growth for 2022 to a growth rate of 9-11%.

“In the second quarter, Cboe delivered record revenue results, with overall net revenue increasing 21% year-over-year,” Schell said.

He added: “The benefits of the Cboe flywheel were evident given the strong year-over-year growth of each category during the quarter, with net revenue from derivatives markets up 30 %, data and access solutions up 20%, and cash and spot markets up 7%”.

The Chicago Board of Options Exchange (Cboe) Global Markets, operator of various options, stocks, futures and forex markets, reported 20% growth in global foreign exchange net income in the second quarter of 2022 .

Revenue for the last quarter was $16.6 million, Cboe disclosed in a press release on Friday.

The release details the company’s second quarter 2022 financial results.

According to Cboe, this growth is the result of “higher net transaction and clearing costs”.

However, these net revenues represent a decline of approximately 3% in revenue from the $17.1 million generated in the first quarter of this year.

Cboe also said the average daily notional value of forex trading on Cboe FX, its institutional forex trading market, peaked at $39.6 billion for the quarter.

This figure represents a 22% jump from the platform’s posting in the second quarter of 2021.

Additionally, net capture per million dollars of currency traded on Cboe FX during the quarter was $2.71, Cboe said.

This is a flat performance as the net catch per million dollars is the same figure generated at the same time last year.

Based on a broad forex market comparison, the market infrastructure provider said Cboe FX held 17% market share.

This is more than the 16.3% market share the trading platform achieved during the second quarter of 2021.

Additionally, the figure is only a marginal drop from Cboe FX’s performance in Q1 2022.

In the first quarter of this year, the company said Cboe FX controlled 17.3% market share.

Broader Market Results

In the second quarter of 2022, Cboe Global Markets generated net revenue of $424 million, up 21% from the first quarter of 2021.

However, this net income is only 1.4% higher than the company’s first quarter, as it generated $418.1 million during that period.

Additionally, while Cboe’s adjusted diluted earnings per share (EPS) rose 21% to $1.67 during the second quarter of 2022, its diluted EPS plummeted 278% to $1.74.

The multi-asset market operator said this is “primarily due to the impairment of goodwill recognized in the digital reporting unit”.

“Exceptional first half of 2022”

Commenting on the financial statements, Edward Tilly, Chairman and CEO of Cboe Global Markets, praised the company’s second quarter result.

“Cboe delivered strong second quarter results to close out an outstanding first half of 2022. Activity in our ecosystem – cash, data and derivatives – was robust,” Tilly said.

The company’s executive vice president, chief financial officer and treasurer, Brian Schell, also praised the performance, adding that Cboe was adjusting its forecast for total organic net revenue growth for 2022 to a growth rate of 9-11%.

“In the second quarter, Cboe delivered record revenue results, with overall net revenue increasing 21% year-over-year,” Schell said.

He added: “The benefits of the Cboe flywheel were evident given the strong year-over-year growth of each category during the quarter, with net revenue from derivatives markets up 30 %, data and access solutions up 20%, and cash and spot markets up 7%”.