Cboe marks 22% Y/Y rise in global FX revenues in Q1 2020

Maria Nikolova

Global FX net revenue amounted to $16.9 million in the first quarter of 2020, up 22% from a year earlier, mainly due to higher net transaction fees.

Cboe Global Markets, Inc. today posted its financial results for the first quarter of 2020.

Net revenue for the first three months of 2020 amounted to $358.3 million, up 28% compared to $280.5 million in the prior-year period, reflecting higher trading volumes across each business segment, particularly in options and futures.

Cboe reported global FX net revenue of $16.9 million, up $3.0 million or 22% in annual terms, primarily due to higher net transaction fees. ADNV traded on the Cboe FX platform was $43.3 billion for the quarter, up 19% from last year’s first quarter, and net capture increased 3%.

Cboe FX had market share of 15.7% for the first quarter of 2020 compared to 15.8% in last year’s first quarter.

Total operating expenses were $131.9 million versus $134.0 million in the first quarter of 2019. Adjusted operating expenses reached $98.6 million, up 5% from $94.1 million in the first quarter of 2019. The increase was primarily due to higher compensation and benefits expense, reflecting an increase in incentive-based compensation, which is aligned with the company’s financial and operational performance.

Cboe reported operating income of $226.4 million for the first quarter of 2020, up 55% from the year-ago quarter. Ajusted operating income increased by 39% to $259.7 million as a result of higher net revenue and lower operating expenses.

Net income for the first quarter was $157 million, up massive 66% from a year earlier.

Diluted EPS for the first quarter of 2020 was $1.42, up 67%. Adjusted diluted EPS of $1.65 increased 48% compared to 2019’s first- quarter results and set a new all-time high.

The company paid cash dividends of $40.0 million, or $0.36 per share, during the first quarter of 2020 and utilized $119.5 million to repurchase 1.1 million shares of its common stock under its share repurchase program at an average price of $112.46 per share. As of March 31, 2020, the company had approximately $179.7 million of availability remaining under its existing share repurchase authorizations.

At March 31, 2020, the company had adjusted cash of $137.3 million. Total debt as of March 31, 2020 was $868.1 million.

Read this next

Digital Assets

Binance upgrades Bahrain license to offer full-suite of crypto services

The Central Bank of Bahrain (CBB) has granted Binance its Category 4 license as a fully-fledged crypto-asset service provider (CASP).

Digital Assets

BitMEX spot exchange hits $24 million in daily volume

The newly-launched spot market of crypto exchange BitMEX reported a record of $24 million in 24-hour trade activity on May 25.

Retail FX

Financial Commission certifies offering of trade copier 4X Solutions

The Financial Commission, an independent self-regulatory compliance specialist for the financial services industry, has certified the trading technology offered by trade copier 4X Solutions.

Industry News, Inside View

LIVE from Devexperts webinar for brokers on Fractional Trading

Finance Feeds is providing live coverage of the event that aims to help brokers discover fractional shares as a key tool for a successful brokerage business in today’s trading industry.

Industry News, Retail FX

ASIC celebrates retail ban on binary options as 68% of wholesale clients lose money

In the 13 months before the ban, between 74% and 77% of active retail clients lost money trading binary options. The product intervention order does not apply to wholesale clients.

Crypto Insider

Investing in crypto: how to stay away from weak players

The main reason behind the hacks of crypto exchanges is weak key management. For example, all 4 hacks that took place in 2021 were caused by the ability of hackers to obtain access to hot wallets. 

Retail FX

Vantage launches swap-free gold XAUUSD trades for all clients until end of July

“As the greenback continues to strengthen, we want to support traders who remain bullish on gold or seek short term trading opportunities amid the volatility”

Industry News

Broadridge launches ESG reporting solution ahead of European regulation SFDR

The Broadridge managed solution for EET adds to existing Broadridge services, including European PRIIPs Template, European MiFID Template, Solvency II Tripartite Template and many more across the European jurisdictions.

Industry News

iCapital to acquire embedded structured investment platform SIMON

SIMON’s platform, SPECTRUM, is a multi-dimensional allocation analysis and portfolio construction tool designed to evaluate how structured investments and/or annuities may fit into a portfolio.