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Cboe Global Markets(Cboe)
Investor Relations
Quarterly Earnings
2025Q1
Strategic Focus
Investing in the continued growth of our core business in Global Derivatives
Enhancing recurring revenue opportunities through Data Vantage
Harnessing our global network to expand product reach and access
Leveraging our superior technology to drive innovation.
Capitalizing on the demand for access to the U.S. capital markets
Disciplined allocation of capital and resources
Our Derivatives business delivered a record quarter with organic net revenue increasing 16% year-overyear as traders and investors utilized our flagship VIX and S&P 500 index options products across an everchanging market environment, helping to respond to geopolitical events, market volatility, and the macroeconomic uncertainty around the globe.
We saw strong volumes across our suite of index options products, with first quarter ADV in the SPX contract increasing 13% year-over-year and ADV in the XSP contract increasing 61% year-over-year. We also saw solid performance in our volatility product suite during the first quarter, with VIX options ADV increasing 33% and VIX Futures ADV increasing 13%.
We see significant opportunity in the Asia Pacific region,where we see growing demand for our index options products ...We onboarded new clients in Korea and Taiwan to offer our proprietary products. W
To that end, in the first quarter we completed our final equities exchange migration to Cboe Titanium, our best-in-class exchange technology platform.
We saw activity accelerate throughout the period to produce record total options average daily volumes across our four options exchanges.
The growth in our SPX options franchise was led by a continued rise in 0DTE options trading. This was on the back of two factors. First was the fast-moving nature of headlines coming from this administration, as investors turned to zero-day options to help monetize the increase in intraday volatility. Second was expanded access, with Robinhood rolling out index options to all its customers in late January. 0DTE option volumes averaged almost 2M contracts in Q1, up 29% year-over-year, and making up a record 55% share of overall SPX volume.
Index options volume in our Global Trading Hours hit a record last quarter, up 36% year-over-year. Over 253k SPX options traded during overnight hours on January 27th when the Deep Seek headlines hit the market, more than during the November US election. That record has since been broken multiple times in April as trade tensions escalated.
Most notably, our new Bitcoin index options – tickers CBTX and MBTX – since their December launch. ETF issuers, in particular, have gravitated toward our products by introducing options-based strategies on bitcoin. Already, 15 ETFs are using CBTX and MBTX options in their strategies with more expected to come. MBTX option volumes hit a high of over 27k contracts on March 31st, equivalent to $527M notional. We’re excited to expand on our bitcoin offering with Cboe FTSE Bitcoin Index futures, which launched on April 28th.
With Cboe Canada successfully migrating to Cboe Titanium during the quarter, we now have all our equities and derivatives markets across North America, UK, Europe, Australia, and Japan running on Cboe Titanium.
In the U.S., industry activity levels have been healthy, but the benefit was muted by a smaller addressable market for Cboe with total volume transacted off-exchange or during auctions hitting 56% during the first quarter, or 6 percentage points higher than Q1 2024 levels.
Turning to Data Vantage, net revenue grew over 8% in the first quarter with solid increases in all three components of our Data Vantage business – real-time market data, analytics, and indices. Also of note in Q1, we saw new recurring annual contract value (ACV) increase 47% year-over-year, a strong leading indicator for our business.
We believe getting our data in the hands of more customers around the globe is not only beneficial for our Data Vantage business, but enhances our trading businesses as well. Historically, we have seen customers increase data consumption ahead of implementing trading strategies in new markets. In this case, international investors analyzing and backtesting data ahead of putting money to work in the U.S. or Europe.
We continue to expect the effective tax rate on adjusted earnings (under the current tax laws) to come in at 28.5% to 30.5% for the full year.
While volumes may ease from the exceptional levels seen in recent months, we believe the market ecosystem remains healthy and supportive of volume growth moving forward.
Fredric Tomczyk: Cboe is well-positioned for Craig Donohue to take the reins. Many of you know Craig from his days at CME where his track record speaks for itself. Craig brings decades of experience in the global derivatives markets and a history of driving growth and innovation to Cboe. His visionary leadership, deep experience, industry relationships, and proven track record in global financial markets make him an excellent individual to take the helm as CEO at Cboe. Craig will assume the CEO seat on May 7th, upon which point I will transition into an advisory role through the end of June. I look forward to working closely with him on a seamless transition and returning to my role as a non-employee director of the Board.