Cboe Global Markets (CBOE) Barclays 22nd Annual Global Financial Services Conference 2024 summary

Macro environment and market trends

• Volatility products saw record usage, with August marking the second-highest month for VIX options and Q3 tracking as a top quarter for both VIX and SPX options.

• Customers are positioning for both upside and downside volatility, especially ahead of the U.S. election and into 2025.

• Broader and more diverse usage of the options complex is driven by new users and use cases, including institutional and retail segments.

• Index options growth remains robust, with the industry on track for a fifth consecutive record year.

• International demand for U.S. market access and options innovation continues to rise, especially in Asia Pacific.

Strategic focus and operational discipline

• Shifted away from small M&A to focus on expense discipline, margin stabilization, and organic growth.

• Margins are among the top 10% in the S&P 500, with a focus on maintaining rather than expanding them.

• Technology integration across global platforms is nearly complete, freeing resources for growth initiatives.

• Capital allocation prioritizes organic investment, dividends, opportunistic share repurchases, and selective M&A.

• Management aims to leverage secular trends and global brand strength for future growth.

Product innovation and growth opportunities

• New products like VIX options on futures and Variance Futures are launching, targeting new customer segments and expanding the volatility toolkit.

• Product innovation is customer-driven, with a focus on broadening access and use cases.

• Retail engagement is expected to increase as major platforms like Robinhood add index options, with international retail growth also accelerating.

• OCC margin rule changes are being monitored, but no significant impact on market share has been observed so far.

• Data and analytics (DnA) business is expected to grow at the low end of the 7%-10% range for 2024, with further acceleration anticipated post-Canada migration.