Cboe Global Markets Records Highest Quarter Market Share in Cboe FX for Q2 2023

Cboe Global Markets, the world's leading derivatives and securities exchange network, published its financial results for the second quarter of 2023 (Q2 2023), revealing the market share of Cboe FX hitting a quarterly record.

Consolidated trading overview of Q2 2023:

• Total revenues less cost of revenues (referred to as "net revenue") of $467.1 million increased 10%, compared to $424.1 million in the prior-year period.

• Total operating expenses were $222.3 million versus $661.5 million in the second quarter of 2022, a decrease of $439.2 million. Adjusted operating expenses of $192.3 million increased 22% compared to $157.0 million in the second quarter of 2022. 

• The effective tax rate for the second quarter of 2023 was 30.6% compared with 28.2% in the second quarter of 2022. The effective tax rate on adjusted earnings was 29.7%, an increase of 1.3% when compared with 28.4% in last year's second quarter.

• Diluted EPS for the second quarter of 2023 increased to $1.57 compared to the second quarter of 2022. Adjusted diluted EPS of $1.78 increased 7% compared to 2022's second quarter results.

Options:

• Options net revenue of $283.2 million was up $47.9 million, or 20%, from the second quarter of 2022.

• Net transaction and clearing fees increased $51.7 million, or 27%, reflecting a 10% increase in total options average daily volume ("ADV") and a 16% increase in total options RPC compared to the second quarter 2022. 

• Cboe's Options exchanges had total market share of 33.3% for the second quarter of 2023 compared to 33.2% in the second quarter of 2022.

North American (N.A.) Equities:

• N.A. Equities net revenue of $90.8 million decreased $1.9 million, or 2% versus the second quarter of 2022.

• Net transaction and clearing fees decreased by $4.3 million, or 13%, as compared to the second quarter of 2022. 

• Cboe's U.S. Equities exchanges had market share of 12.7% for the second quarter of 2023 compared to 13.6% in the second quarter of 2022. Cboe's U.S. Equities off-exchange market share was 21.2% versus 22.7% in the second quarter of 2022 as overall industry alternative trading systems ("ATS") market share declined as a%age of off-exchange share. 

• Canadian Equities market share rose to 14.5% as compared to 6.4% in the second quarter of 2022 given the inclusion of Cboe Canada (formerly NEO).

Europe and Asia Pacific (APAC):

• Europe and APAC net revenue of $47.3 million decreased by 5%, reflecting slower industry volumes. On a constant currency basis, net revenues were $47.8 million, down 4% on a year-over-year basis. European Equities average daily notional value ("ADNV") traded on Cboe European Equities was €9.2 billion, down 15% compared to the second quarter of 2022, outperforming a 17% decline in industry market volumes. 

• For the second quarter of 2023, Cboe European Equities had 23.8% market share, up from 23.2% in the second quarter of 2022.

Futures:

• Futures net revenue of $29.2 million decreased $0.4 million compared to the second quarter of 2022, due to a decline in net transaction and clearing fees, partially offset by an increase in access and capacity fees.

• Net transaction and clearing fees decreased $0.6 million, reflecting an 11% decline in ADV during the quarter.

Global FX:

• Global FX net revenue of $17.8 million increased 7%, primarily due to higher net transaction fees. ADNV traded on the Cboe FX platform was $42.5 billion for the quarter, up 7% compared to last year's second quarter, and net capture per one million dollars traded was $2.66 for the quarter, down 2% compared to $2.71 in the second quarter of 2022.

• Cboe FX market share was 19.5% for the quarter compared to 17.0% in last year's second quarter, which sets a quarterly record for Cboe FX.