Cboe Global Markets (CBOE) Piper Sandler Global Exchange and Trading Conference 2024 summary

Business performance and growth outlook

• Achieved three of the top four months in index option volumes this year, with VIX volumes on pace for a record year and strong 0DTE activity.

• Data and Access Solutions business continues to grow, with market share improvements in Japan and Australia after technology rollouts.

• Trading volumes show seasonality, but upcoming elections, global conflicts, and shifting market sentiment are expected to drive continued activity.

• 0DTE options have seen increased institutional adoption, with a balanced mix between retail and institutional participants.

• Institutions value 0DTE options for efficient risk management around events and intraday moves.

Strategic review and capital allocation

• Strategic review focuses on assessing trends, strengths, and weaknesses across markets and geographies to position for secular growth.

• Shifted away from aggressive M&A, emphasizing disciplined capital allocation and margin stabilization.

• Growth strategy centers on options, data, and access, which comprise 80% of revenue and are seen as more recurring than equities.

• No major event or reveal expected from the review; changes will unfold gradually, focusing on long-term positioning.

• Capital deployment balanced between buybacks, dividends, organic reinvestment, and selective M&A, with a strong balance sheet and low leverage.

International and product expansion

• Asia Pacific identified as a key growth region due to wealth creation and market potential.

• Exporting U.S. capabilities to Europe and Asia is a long-term effort, with local market differences and infrastructure needs.

• European derivatives business is in early stages, requiring more participants and liquidity to scale.

• Data and Access Solutions revenue growth is driven by international markets, with technology upgrades like Dedicated Cores reducing latency by 40%.

• Focused on organic growth and expanding user base, especially in Asia, rather than relying on price increases.