Cboe Global Markets, Inc.
Cboe Global Markets, Inc., through its subsidiaries, operates as a derivatives and securities exchange network that delivers cutting-edge trading, clearing, and investment solutions in the United States and internationally. It operates through five segments: Options, North American Equities, Europe and Asia Pacific, Futures, and Global FX. The Options segment includes options on market indices, as well as on the stocks of individual corporations and on trading solutions and products in multiple asset classes, including equities, derivatives, and FX, across North America, Europe, and Asia Pacific (ETPs), such as exchange-traded funds (ETFs) and exchange-traded notes (ETNs); and trading in listed options through a single system. The North American Equities segment comprising U.S. equities and ETP transaction services. This segment also includes listing services on Cboe Canada, ETP listings on BZX, the Cboe Global Markets, Inc. common stock listing, and applicable market data. The Europe and Asia Pacific segment provides pan-European derivatives transaction services, ETPs, including exchange traded funds, exchange traded notes, and exchange traded commodities, and international depository receipts; and ETP listings business on regulated markets and clearing activities, as well as the equities services. The Futures segment offers transaction services, which includes trading of VIX futures and other futures products, the licensing of proprietary market data, as well as access and capacity services. The Global FX segment provides institutional foreign exchange (FX) trading and non-deliverable forward FX transactions services. It has strategic relationships with S&P Dow Jones Indices, LLC; Frank Russell Company; and FTSE International Limited. The company was formerly known as CBOE Holdings, Inc. and changed its name to Cboe Global Markets, Inc. in October 2017. Cboe Global Markets, Inc. was founded in 1973 and is headquartered in Chicago, Illinois.
What does it do?
Cboe Global Markets runs the exchanges where people buy and sell stock options, futures, and currencies. Think of it like owning the actual marketplace — not the stocks themselves, but the building where trading happens. Their most famous product is the VIX, nicknamed the 'fear index,' which measures how nervous Wall Street is feeling. When markets get choppy, traders flood Cboe's platforms to protect their portfolios, which is great for Cboe's business.
Cboe sits at the center of a boom in options trading — everyday retail investors now trade options at record levels, not just hedge funds and professionals. The company also owns the infrastructure for a growing chunk of global derivatives markets, meaning it collects a small fee on trillions of dollars in trades every year. With market volatility persistently elevated and new products launching globally, Cboe is in a strong position right now.
How does it make money?
Cboe makes money primarily by charging transaction fees every time someone trades on one of its exchanges — like a toll booth on a busy highway. Options trading is the biggest earner, and Cboe dominates that space in the US. They also earn from selling market data (think live price feeds sold to banks and trading firms), listing fees, and running their global FX and equities platforms. Revenue grew from $2.1B to $2.4B in the latest year, a solid 14% jump.
Why do investors care?
The growth story here is two-fold: more people trading options worldwide, and Cboe expanding its products internationally. They've been pushing 24-hour trading and launching new index options products like zero-day-to-expiry options (options that expire the same day you buy them), which have exploded in popularity. For the thesis to work, retail and institutional trading volumes need to stay high and their international expansion — especially in Europe and Asia — needs to gain traction.
Deep Dive
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