Cboe Global Markets, Inc. (CBOE)

Cboe Global Markets, Inc. is the world's leading derivatives and securities exchange network, providing trading, clearing, and investment solutions across equities, derivatives, and FX asset classes throughout North America, Europe, and Asia Pacific. The company operates the largest options exchange and third-largest equities exchange operator in the U.S., alongside Cboe Europe (one of the largest European equities exchanges by value traded), Cboe Clear Europe (a leading pan-European clearinghouse), BIDS Holdings (a leading U.S. block-trading ATS), and additional exchange operations in Australia, Japan, and Canada. Cboe reports across six business segments: Options (index and equity options on multiple exchanges including its flagship SPX and VIX products), North American Equities (U.S. and Canadian equities trading and listings), Europe and Asia Pacific (pan-European equities/derivatives and Asia-Pacific equities operations), Futures (CFE exchange, including VIX futures), Global FX (institutional FX and NDF trading, plus U.S. government securities trading), and Digital (regulated futures exchange and clearinghouse for digital assets, though this segment is being wound down with Bitcoin/Ether futures transitioning to CFE in 2025 and the spot market closed as of May 2024).

The company also categorizes revenue into three areas: Cash and Spot Markets, Cboe Data Vantage (market data, indices, and analytics), and Derivatives Markets. Cboe holds exclusive licensing agreements with major index providers including S&P Dow Jones Indices (through 2033, with SPX options exclusivity through 2032), FTSE Russell (through 2030), and MSCI, enabling proprietary product offerings that are key revenue and volume drivers, particularly SPX options and VIX options/futures, which are used by institutional investors for hedging and risk management strategies. The company's Cboe Data Vantage business monetizes proprietary market data, index licensing, and analytics services, while its Cash and Spot Markets segment encompasses four U.S. equities exchanges (BZX, EDGX, BYX, EDGA), international equities exchanges, an FX platform, and listing services across five global venues (approximately 2,460 listings as of year-end 2024).

Cboe Clear Europe, its European CCP, cleared an average of €49 billion in daily value in 2024, up from €44 billion in 2023, and recently launched securities financing transaction clearing services. The company's customer base includes financial institutions, broker-dealers, institutional and individual investors, hedge funds, asset managers, and proprietary trading firms globally. Cboe operates in an intensely competitive industry, differentiating itself through technological innovation, diverse product offerings, competitive pricing models, deep liquidity, and strong customer relationships, while competing against other exchanges, swap execution facilities, and providers of similar multi-listed and over-the-counter derivative products.