Cboe Global Markets Inc
For the period ended Jun 30, 2024. Filed Aug 2, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 2, 2024
CBOE$353.27+0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-03.
0001558370-24-006597
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-02.
0001558370-24-010654
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 196 previous paragraphs and 233 current paragraphs.
109 unchanged; 69 reworded; 47 added; 14 removed; 4 previous and 8 current paragraphs rearranged.
Tables are not compared: 70 previous and 70 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (47)
Current report
On April 25, 2024, the Company announced plans to refocus the digital asset business to leverage its core strengths in derivatives, technology, and product innovation. On May 31, 2024, the Company halted trading on Cboe Digital Exchange, LLC’s (“Cboe Digital Exchange”) spot market (“Cboe Digital spot market”), the Company’s spot digital asset trading platform, in-line with the Company’s plans to wind down the spot digital asset trading market by the third quarter of 2024. In addition, the company plans to transition its cash-settled Bitcoin and Ether futures contracts, currently available for trading on the Cboe Digital Exchange, to CFE in the first half of 2025, pending regulatory review. The Company plans to align Cboe Clear Digital with Cboe Clear Europe, under unified leadership, and expects to continue to facilitate the clearing of cash-settled Bitcoin and Ether futures contracts.
Current report
Recent Developments
Current report
Pyth Tokens Unlocking
Current report
In October 2022, the Company, through its wholly-owned subsidiary Cboe NL entered into a Data Provider Agreement with Pyth Data Association (“Pyth”) to create a data feed and begin publishing limited derived equities market data for certain symbols from one of its four U.S. equities exchanges on the Pyth Network, a decentralized financial market data distribution platform for aggregated data. In exchange, Pyth granted Cboe NL 16,666,666 restricted PYTH tokens which unlock annually over a four-year period in equal tranches; the first 25% tranche of PYTH tokens unlocked in May 2024. The PYTH tokens, which are included within intangible assets, net in the condensed consolidated balance sheets, are carried at their historical value of $0.06 per token and are reviewed each reporting period for potential impairment. In May 2024, the Company recorded $1.0 million in market data fees revenue on the condensed consolidated statements of income, which represents the historical value of the grant of 16,666,666 restricted PYTH tokens earned for satisfying the performance obligations outlined in the Data Provider Agreement.
Current report
Impairment of Intangible Assets
Current report
Impairment of intangible assets consists of charges to impair intangible assets if the carrying value exceeds the fair value.
Current report
Non-Operating (Expenses) Income
Current report
The following summarizes changes in certain operational and financial metrics for the six months ended June 30, 2024, compared to the six months ended June 30, 2023:
Current report
*The Digital segment is not included as results were not material for the three and six months ended June 30, 2024 and 2023.
Current report
Derivatives markets revenue decreased slightly for the six months ended June 30, 2024 compared to the same period in 2023 primarily due to a decrease in industry market data fees attributable to a decrease in Options Price Reporting Authority (“OPRA”) revenue in the Options segment as a result of a decline in market share on the Cboe options exchanges.
Current report
Total cost of revenues decreased for the six months ended June 30, 2024 compared to the same period in 2023 primarily due to decreased derivatives markets cost of revenues, driven by a decrease in liquidity payments on the Cboe options exchanges, partially offset by an increase in cash and spot markets cost of revenue, driven by an increase in Section 31 fees.
Current report
Liquidity payments decreased for the three and six months ended June 30, 2024 compared to the same periods in 2023 primarily due to a decrease in liquidity payments within the Options segment as a result of pricing changes made in the second half of 2023 to improve overall net capture, coupled with a decrease in liquidity payments within the North American Equities segment as a result of pricing changes made in the first half of 2024 to improve overall net capture.
Current report
Section 31 fees increased for the three months ended June 30, 2024 compared to the same period in 2023 primarily due to a 109% increase in the Section 31 fee rate, from an average rate of $8.00 per million dollars of covered sales for the three months ended June 30, 2023 to an average rate of $16.70 per million dollars of covered sales for the three months ended June 30, 2024. Section 31 fees increased for the six months ended June 30, 2024 compared to the same period in 2023 primarily due to an increase in notional volumes, partially offset by a 3% decrease in the Section 31 fee rate, from an average rate of $12.71 per million dollars of covered sales for the six months ended June 30, 2023 to an average rate of $12.35 per million dollars of covered sales for the six months ended June 30, 2024.
Current report
Cash and spot markets revenues less cost of revenues increased for the three months ended June 30, 2024 compared to the same period in 2023 primarily due to increases in transaction and clearing fees less liquidity payments and routing and clearing costs (“net transaction and clearing fees”) in the North American Equities, Europe and Asia Pacific, and Global FX segments, coupled with an increase in net other revenue, partially offset by a decrease in industry market data fees. Net transaction and clearing fees increased primarily due to a 30% increase in U.S. Equities net capture, a 9% increase in European Equities net capture, a 17% increase in net fee per settlement by Cboe Clear Europe, and a 12% increase in Global FX ADNV, partially offset by a 1% decrease in total touched shares on the U.S. Equities exchanges. Net other revenue increased primarily due to an increase in operating interest income attributable to Cboe Clear Europe as a result of the changing interest rate environment and additional interest income in accordance with its investment policy. See Note 12 (“Clearing Operations”) for additional information on Cboe Clear Europe’s investment policy. Industry market data fees decreased primarily due a decrease in U.S. tape plan revenue driven by a 1% decline in market share on the U.S. Equities exchanges.
Current report
Cash and spot markets revenues less cost of revenues increased for the six months ended June 30, 2024 compared to the same period in 2023 primarily due to increases in net transaction and clearing fees in the North American Equities, Europe and Asia Pacific, and Global FX segments, coupled with an increase in net other revenue, partially offset by a decrease in industry market data fees. Net transaction and clearing fees increased primarily due to a 15% increase in U.S. Equities net capture, a 13% increase in European Equities net capture, a 6% increase in Global FX ADNV, and a 72% increase in Japanese Equities ADNV. Net other revenue increased primarily due to an increase in operating interest income attributable to Cboe Clear Europe as a result of the changing interest rate environment and additional interest income in accordance with its investment policy. See Note 12 (“Clearing Operations”) for additional information on Cboe Clear Europe’s investment policy. Industry market data fees decreased primarily due a decrease in U.S. tape plan revenue driven by a 1% decline in market share on the U.S. Equities exchanges.
Current report
Derivatives markets revenues less cost of revenues increased for the three months ended June 30, 2024 compared to the same period in 2023 primarily due to an increase in net transaction and clearing fees driven by a 9% increase in index options ADV, a 2% increase in index options RPC, and a 28% increase in futures ADV, partially offset by an increase in royalty fees due to an increase in trading volumes of licensed products in the Options segment.
Current report
Derivatives markets revenues less cost of revenues increased for the six months ended June 30, 2024 compared to the same period in 2023 primarily due to an increase in net transaction and clearing fees driven by an 11% increase in index options ADV, a 3% increase in index options RPC, and a 10% increase in futures ADV, partially offset by an increase in royalty fees due to an increase in trading volumes of licensed products in the Options segment.
Current report
Total operating expenses for the three and six months ended June 30, 2024 compared to the same periods in 2023 increased $81.4 million, or 37%, and $77.6 million, or 17%, respectively, primarily due to the impairment of intangible assets charge recorded to the Digital segment in the second quarter of 2024.
Current report
Professional fees and outside services increased for the three and six months ended June 30, 2024 compared to the same periods in 2023 primarily due to increases in consulting fees, contract services, and legal fees, partially offset by a
Current report
decrease in recruiting fees. For the six months ended June 30, 2024, the increase in professional fees and outside services was partially offset by a decrease in regulatory costs related to CAT fees compared to the same period in 2023.
Current report
Impairment of Intangible Assets
Current report
Impairment of intangible assets increased for the three and six months ended June 30, 2024 compared to the same periods in 2023 due to the impairment of intangible assets recognized in the Digital segment.
Current report
As a result of the items above, operating income for the six months ended June 30, 2024 was $492.5 million, compared to operating income of $492.7 million for the six months ended June 30, 2023, a decrease of $0.2 million.
Current report
Earnings on Investments
Current report
Other (Expense) Income, Net
Current report
As a result of the above, income before income tax provision for the six months ended June 30, 2024 was $495.1 million, compared to income before income tax provision of $490.0 million for the six months ended June 30, 2023, an increase of $5.1 million.
Current report
The effective tax rate from continuing operations was 30.8% and 30.6% for the three months ended June 30, 2024 and 2023, respectively, and 29.3% and 30.4% for the six months ended June 30, 2024 and 2023, respectively.
Current report
As a result of the items above, net income for the six months ended June 30, 2024 was $349.9 million, compared to net income of $341.2 million for the six months ended June 30, 2023, an increase of $8.7 million.
Current report
Revenues less cost of revenues increased $50.2 million for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 primarily due to an increase in net transaction and clearing fees driven by an 11% increase in index options ADV, a 3% increase in index options RPC, an increase in physical and logical port fees, and an increase in proprietary market data revenue, partially offset by an increase in royalty fees due to an increase in trading volumes of licensed products. For the six months ended June 30, 2024, operating income for the Options segment increased $27.7 million compared to the six months ended June 30, 2023 primarily due to an increase in revenues less cost of revenues, partially offset by an increase in operating expenses. Operating expenses increased $22.5 million for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 primarily due to increases in compensation and benefits, technology support services, and professional and outside services.
Current report
Revenues less cost of revenues increased $7.5 million for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 primarily due to an increase in net transaction and clearing fees driven by a 30% increase in U.S. Equities net capture, an increase in proprietary market data revenue, and an increase in physical port fees, partially offset by a decrease in industry market data fees driven by a decrease in U.S. tape plan revenue as a result of a 1% decline in market share on the U.S. Equities exchanges. For the three months ended June 30, 2024, operating income for the North American Equities segment increased $22.5 million compared to the three months ended June 30, 2023 primarily due to a decrease in operating expenses, coupled with an increase in revenues less cost of revenues. Operating expenses decreased $15.0 million for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 due to decreases in technology support services, depreciation and amortization, compensation and benefits, and travel and promotional expenses.
Current report
Revenues less cost of revenues increased $7.0 million for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 primarily due to an increase in net transaction and clearing fees driven by a 9% increase in European Equities net capture, a 17% increase in net fee per settlement by Cboe Clear Europe, and a 71% increase in Japanese Equities ADNV, coupled with an increase in operating interest income attributable to Cboe Clear Europe. For the three months ended June 30, 2024, operating income for the Europe and Asia Pacific segment increased $3.7 million compared to the three months ended June 30, 2023 primarily due to an increase in revenues less cost of revenues, partially offset by an increase in operating expenses. Operating expenses increased $3.3 million for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 primarily due to increases in compensation and benefits and professional fees and outside services.
Current report
Revenues less cost of revenues increased $5.6 million for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 primarily due to an increase in net transaction and clearing fees as a result of a 28% increase in ADV, partially offset by a 4% decrease in RPC. For the three months ended June 30, 2024, operating income for the Futures segment increased $7.9 million compared to the three months ended June 30, 2023 primarily due to an increase in revenues less cost of revenues, coupled with a decrease in operating expenses. Operating expenses decreased $2.3 million for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 primarily due to decreases in technology support services, compensation and benefits, and travel and promotional expenses.
Current report
Revenues less cost of revenues increased $5.0 million for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 primarily due to an increase in net transaction and clearing fees as a result of a 10% increase in ADV, partially offset by a 1% decrease in RPC. For the six months ended June 30, 2024, operating income for the Futures segment increased $9.1 million compared to the six months ended June 30, 2023 primarily due to an increase in revenues less cost of revenues, coupled with a decrease in operating expenses. Operating expenses decreased $4.1 million for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 primarily due to decreases in compensation and benefits and technology support services.
Current report
Revenues less cost of revenues increased $2.0 million for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 primarily due to an increase in net transaction and clearing fees driven by a 12% increase in ADNV. For the three months ended June 30, 2024, operating income for the Global FX segment increased $4.2 million compared to the three months ended June 30, 2023 primarily due to a decrease in operating expenses, coupled with an increase in revenues less cost of revenues. Operating expenses decreased $2.2 million for the three
Current report
months ended June 30, 2024 compared to the three months ended June 30, 2023 primarily due to decreases in depreciation and amortization and technology support services.
Current report
Revenues less cost of revenues increased $1.1 million for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 primarily due to an increase in net transaction and clearing fees driven by the reversal of $1.0 million of contra-revenue recorded as part of the syndication wind down. For the three months ended June 30, 2024, operating loss for the Digital segment increased $79.3 million compared to the three months ended June 30, 2023 primarily due to the impairment of intangible assets of $81.0 million related to the Cboe Digital spot market wind down in the three months ended June 30, 2024. Operating expenses increased $80.4 million for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 due to the impairment of intangible assets.
Current report
payable and accrued liabilities and the change in accounts receivable for the six months ended June 30, 2024 compared to the six months ended June 30, 2023.
Current report
Net Cash Flows Used in Investing Activities
Current report
Goodwill and Other Intangible Assets
Showing the first 40 of 47 passages. Open the source sections for the rest.
Removed paragraphs (14)
Previous report
On April 25, 2024, the Company announced plans to wind down the spot crypto market currently offered by Cboe Digital and transition its cash-settled Bitcoin and Ether futures contracts to CFE, pending regulatory review and certain corporate approvals. The Company expects to maintain the derivatives clearing services currently operated by Cboe Clear Digital, integrating these functions and teams into the existing organizational structure. In connection with shutting down the spot crypto exchange, the Company also plans to unwind the minority ownership structure in Cboe Digital.
Previous report
For the three months ended March 31, 2024, Cboe Digital net revenue was $(0.9) million and is included in the Digital reportable segment. The Company expects to record an estimated pre-tax charge of $39 million to $82 million, which is expected to be recorded in the quarter ending June 30, 2024, primarily related to non-cash impairment of long-lived and indefinite-lived intangible assets.
Previous report
Non-Operating Income (Expenses)
Previous report
*Not meaningful
Previous report
Liquidity payments decreased for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to a decline in multi-listed options market share, a decrease in multi-listed options ADV, and a decrease in the number of trading days on the Options exchanges.
Previous report
Section 31 fees decreased for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to a 54% decrease in the Section 31 fee rate, from an average rate of $17.41 per million dollars of covered sales for the three months ended March 31, 2023 to an average rate of $8.00 per million dollars of covered sales for the three months ended March 31, 2024.
Previous report
Derivatives markets revenues less cost of revenues increased for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to increases in net transaction and clearing fees driven by a 14% increase in
Previous report
Total operating expenses for the three months ended March 31, 2024 compared to the same period in 2023 decreased $3.8 million, or 2%, primarily due to decreases in acquisition-related costs and depreciation and amortization, partially offset by increases in compensation and benefits.
Previous report
Professional fees and outside services decreased for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to decreases in regulatory costs associated with CAT expenses, and consulting fees, partially offset by increases in legal fees and contract services.
Previous report
Earnings in Investments
Previous report
Other Income, Net
Previous report
*Not meaningful
Previous report
Revenues less cost of revenues decreased $0.6 million for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 primarily due to an increase in net transaction and clearing fees as a result of a 5% decrease in ADV, partially offset by a 1% increase in net capture. For the three months ended March 31, 2024, operating income for the Futures segment increased $1.2 million compared to the three months ended March 31, 2023 primarily due to a decrease in operating expenses, partially offset by a decrease in revenues less cost of revenues. Operating expenses decreased $1.8 million for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 primarily due to decreases in professional fees and outside services and compensation and benefits.
Previous report
Net Cash Flows (Used in) Provided by Investing Activities
Reworded paragraphs (69)
Previous wording
Cboe Global Markets, Inc., the world’s leading derivatives and securities exchange network, delivers cutting-edge trading, clearing and investment solutions to people around the world. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives, FX, and digital assets, across North America, Europe, and Asia Pacific. Above all, the Company is committed to building a trusted, inclusive global marketplace that enables people to pursue a sustainable financial future.
Current wording
Cboe Global Markets, Inc., the world’s leading derivatives and securities exchange network, delivers cutting-edge trading, clearing and investment solutions to people around the world. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives, and FX, across North America, Europe, and Asia Pacific. Above all, the Company is committed to building a trusted, inclusive global marketplace that enables people to pursue a sustainable financial future.
Previous wording
Cboe’s subsidiaries include the largest options exchange and the third largest stock exchange operator in the U.S. In addition, the Company operates Cboe Europe, one of the largest stock exchanges by value traded in Europe, and owns Cboe Clear Europe, a leading pan-European equities and derivatives clearinghouse, BIDS Holdings, which owns a leading block-trading ATS by volume in the U.S., and provides block-trading services with Cboe market operators in Europe, Canada, Australia, and Japan, Cboe Australia, an operator of trading venues in Australia, Cboe Japan, an operator of trading venues in Japan, Cboe Digital, an operator of a U.S. based digital asset spot market and a regulated futures exchange, Cboe Clear Digital, an operator of a regulated clearinghouse, and Cboe Canada Inc., a recognized Canadian securities exchange. Cboe subsidiaries also serve collectively as a leading market globally for exchange-traded products (“ETPs”) listings and trading.
Current wording
Cboe’s subsidiaries include the largest options exchange and the third largest stock exchange operator in the U.S. In addition, the Company operates Cboe Europe, one of the largest stock exchanges by value traded in Europe, and owns Cboe Clear Europe, a leading pan-European equities and derivatives clearinghouse, BIDS Holdings, which owns a leading block-trading ATS by volume in the U.S., and provides block-trading services with Cboe market operators in Europe, Canada, Australia, and Japan, Cboe Australia, an operator of trading venues in Australia, Cboe Japan, an operator of trading venues in Japan, Cboe Digital Exchange, LLC, an operator of a regulated futures exchange, Cboe Clear Digital, an operator of a regulated clearinghouse, and Cboe Canada Inc., a recognized Canadian securities exchange. Cboe subsidiaries also serve collectively as a leading market globally for exchange-traded products (“ETPs”) listings and trading.
Previous wording
The Company operates six reportable business segments: Options, North American Equities, Europe and Asia Pacific, Futures, Global FX, and Digital, which is reflective of how the Company's chief operating decision-maker reviews and operates the business, as discussed in Note 1 (“Organization and Basis of Presentation”). Segment performance is primarily evaluated based on operating income (loss). The Company’s chief operating decision-maker does not use segment-level assets or income and expenses below operating income (loss) as key performance metrics; therefore, such information is not presented below. The Company has aggregated all of its corporate costs, as well as other business ventures, within the Corporate Items and Eliminations totals based on the decision that those activities should not be used to evaluate the operating performance of the segments; however, operating expenses that relate to activities of a specific segment have been allocated to that segment.
Current wording
segment-level assets or income and expenses below operating income (loss) as key performance metrics; therefore, such information is not presented below. The Company has aggregated all of its corporate costs, as well as other business ventures, within the Corporate Items and Eliminations totals based on the decision that those activities should not be used to evaluate the operating performance of the segments; however, operating expenses that relate to activities of a specific segment have been allocated to that segment.
Previous wording
North American Equities. The North American Equities segment includes U.S. equities and ETP transaction services that occur on fully electronic exchanges owned and operated by BZX, BYX, EDGX, and EDGA, equities transactions that occur on the BIDS Trading platform in the U.S. and Canada, and Canadian equities and other transaction services that occur on or through Cboe Canada Inc.’s order books. The North American Equities segment also includes listing services on Cboe Canada Inc., corporate and ETP listings on BZX, applicable market data fees revenues
Current wording
North American Equities. The North American Equities segment includes U.S. equities and ETP transaction services that occur on fully electronic exchanges owned and operated by BZX, BYX, EDGX, and EDGA, equities transactions that occur on the BIDS Trading platform in the U.S. and Canada, and Canadian equities and other transaction services that occur on or through Cboe Canada Inc.’s order books. The North American Equities segment also includes listing services on Cboe Canada Inc., corporate and ETP listings on BZX, applicable market data fees revenues generated from the consolidated tape plans, the licensing of proprietary equities market data, routing services, and access and capacity services.
Previous wording
Europe and Asia Pacific. The Europe and Asia Pacific segment includes the pan-European listed equities and derivatives transaction services, ETPs, exchange-traded commodities, and international depository receipts that are hosted on MTFs operated by Cboe Europe Equities (Cboe Europe and Cboe NL equities exchanges) and Cboe Europe Derivatives (“CEDX”). It also includes the ETP listings business on RMs and clearing activities of Cboe Clear Europe, as well as the equities transaction services of Cboe Australia and Cboe Japan, operators of trading venues in Australia and Japan, respectively, along with equities transactions that occur on the BIDS Trading platform in Australia and Japan. Cboe Europe operates lit and dark books, a periodic auctions book, and Cboe BIDS Europe, a Large-in-Scale (“LIS”) trading negotiation facility for UK symbols. Cboe NL, based in Amsterdam, operates similar business functionality to that offered by Cboe Europe, and provides for trading only in European Economic Area (“EEA”) symbols. Cboe Europe Derivatives, a pan-European derivatives platform, offers futures and options based on Cboe Europe equity indices, and single stock options. This segment also includes Cboe Europe, Cboe NL, CEDX, Cboe Australia and Cboe Japan revenue generated from the licensing of proprietary market data and from access and capacity services.
Current wording
Europe and Asia Pacific. The Europe and Asia Pacific segment includes the pan-European listed equities and derivatives transaction services, ETPs, exchange-traded commodities, and international depository receipts that are hosted on MTFs operated by Cboe Europe Equities (Cboe Europe and Cboe NL equities exchanges) and Cboe Europe Derivatives (“CEDX”). It also includes the ETP listings business on RMs and clearing activities of Cboe Clear Europe, as well as the equities transaction services of Cboe Australia and Cboe Japan, operators of trading venues in Australia and Japan, respectively, along with equities transactions that occur on the BIDS Trading platform in Australia and Japan. Cboe Europe operates lit and dark books, a periodic auctions book, and Cboe BIDS Europe, a Large-in-Scale (“LIS”) trading negotiation facility predominately for UK and Swiss symbols. Cboe NL, based in Amsterdam, operates similar business functionality to that offered by Cboe Europe, and provides for trading only in European Economic Area (“EEA”) symbols. Cboe Europe Derivatives, a pan-European derivatives platform, offers futures and options based on Cboe Europe equity indices, and single stock options. This segment also includes Cboe Europe, Cboe NL, CEDX, Cboe Australia and Cboe Japan revenue generated from the licensing of proprietary market data and from access and capacity services.
Previous wording
Futures. The Futures segment includes transaction services provided by CFE, a fully electronic futures exchange, which includes offerings for trading of VIX futures and other futures products, the licensing of proprietary market data, as well as access and capacity services.
Current wording
Futures. The Futures segment includes transaction services provided by CFE, a fully electronic futures exchange, which includes offerings for trading of VIX futures, and other futures products, the licensing of proprietary market data, as well as access and capacity services. On April 25, 2024, the Company announced plans to transition its cash-settled Bitcoin and Ether futures contracts, currently available for trading on the Cboe Digital Exchange, to CFE in the first half of 2025, pending regulatory review.
Previous wording
Digital.** **The Digital segment includes a U.S. based digital asset spot market, a regulated futures exchange, and a regulated clearinghouse, as well as revenue generated from the licensing of proprietary market data and from access and capacity services. Cboe Digital launched trading and clearing in margin futures on Bitcoin and Ether on January 11, 2024.
Current wording
Digital.** **The Digital segment includes a U.S.-based spot digital asset trading market, regulated futures exchange, and a regulated clearinghouse, as well as revenue generated from the licensing of proprietary market data and from access and capacity services. In-line with the Company’s plans to wind down the spot digital asset trading market by the third quarter of 2024, on May 31, 2024, the Company halted trading on the Cboe Digital spot market. The Company plans to transition its cash-settled Bitcoin and Ether futures contracts, currently available for trading on the Cboe Digital Exchange, to CFE in the first half of 2025, pending regulatory review. The Company intends to continue to present Digital as a distinct reportable business segment through at least the year ending December 31, 2024.
Previous wording
Liquidity payments are primarily correlated to the volume of securities traded on our markets. As stated above, we record the liquidity rebates paid to market participants providing liquidity, in the case of Cboe Options, C2, BZX, EDGX, and Cboe Europe Equities and Derivatives, and Cboe Digital, as cost of revenue. BYX and EDGA offer a pricing model where we rebate liquidity takers for executing against an order resting on our book, which is also recorded as a cost of revenues.
Current wording
Liquidity payments are primarily correlated to the volume of securities traded on our markets. As stated above, we record the liquidity rebates paid to market participants providing liquidity, in the case of Cboe Options, C2, BZX, EDGX, and Cboe Europe Equities and Derivatives, and Cboe Digital, as cost of revenue. BYX and EDGA offer a pricing model
Previous wording
Various rules require that U.S. options and equities trade executions occur at the National Best Bid and Offer displayed by any exchange. Linkage order routing consists of the cost incurred to provide a service whereby Cboe equities and options exchanges deliver orders to other execution venues when there is a potential for obtaining a better execution price or when instructed to directly route an order to another venue by the order provider. The service affords exchange order flow providers an opportunity to obtain the best available execution price and may also result in cost benefits to those clients. Such an offering improves our competitive position and provides an opportunity to attract orders which would otherwise bypass our exchanges. We utilize third-party brokers or our broker-dealer, Cboe Trading, to facilitate such delivery. Also included within routing and clearing are the Order Management System and Execution Management System (“OMS” and “EMS”, respectively) fees incurred for U.S. Equities Off-Exchange order execution, as well as settlement costs incurred for the settlement process executed by Cboe Clear Europe and Cboe Clear Digital.
Current wording
Various rules require that U.S. options and equities trade executions occur at the National Best Bid and Offer displayed by any exchange. Linkage order routing consists of the cost incurred to provide a service whereby Cboe equities and options exchanges deliver orders to other execution venues when there is a potential for obtaining a better execution price or when instructed to directly route an order to another venue by the order provider. The service affords exchange order flow providers an opportunity to obtain the best available execution price and may also result in cost benefits to those clients. Such an offering improves our competitive position and provides an opportunity to attract orders which would otherwise bypass our exchanges. We utilize third-party brokers or our broker-dealer, Cboe Trading, to facilitate such delivery. Also included within routing and clearing are the Order Management System (“OMS”) and Execution Management System (“EMS”) fees incurred for U.S. Equities Off-Exchange order execution, as well as settlement costs incurred for the settlement process executed by Cboe Clear Europe and Cboe Clear Digital.
Previous wording
Other expenses represent costs necessary to support our operations that are not already included in the above categories, including, but not limited to the impairment of digital assets held presented in intangible assets, net as part of the ordinary operations of the Digital segment, and changes in contingent consideration.
Current wording
Other expenses represents costs necessary to support our operations that are not already included in the above categories, including, but not limited to, changes in contingent consideration.
Previous wording
Income and expenses incurred through activities outside of our core operations are considered non-operating and are classified as other income (expense). These activities primarily include interest earned on the investing of excess cash, commitment fees and interest expense related to outstanding debt facilities, income and unrealized gains and losses related to investments held in a trust for the Company’s non-qualified retirement and benefit plans, including non-employee director deferred compensation, realized gains and losses related to the Company’s previously held minority investments, income earned related to the Company’s minority investments, equity earnings or losses from our investments in other business ventures, impairment of the Company’s investments, and investment establishment costs associated with new business ventures.
Current wording
Income and expenses incurred through activities outside of our core operations are considered non-operating and are classified as other (expenses) income. These activities primarily include interest earned on the investing of excess cash, commitment fees and interest expense related to outstanding debt facilities, income and unrealized gains and losses related to investments held in a trust for the Company’s non-qualified retirement and benefit plans, including non-employee director deferred compensation, realized gains and losses related to the Company’s previously held minority investments, income earned related to the Company’s minority investments, equity earnings or losses from our investments in other business ventures, impairment of the Company’s investments, investment establishment costs associated with new business ventures, and gains/losses related to the dissolution of the Cboe Digital syndication.
Previous wording
These non-GAAP financial measures are not presented in accordance with, or as an alternative to, GAAP financial measures and may be calculated differently from non-GAAP measures used by other companies, which reduces their usefulness as comparative measures. We encourage analysts, investors and other interested parties to use these non-GAAP measures as supplemental information to the GAAP financial measures included herein, including our condensed consolidated financial statements, to enhance their analysis and understanding of our performance and in making comparisons. Please see the footnotes below for definitions, additional information, and reconciliations from the closest GAAP measure.
Current wording
These non-GAAP financial measures are not presented in accordance with, or as an alternative to, GAAP financial measures and may be calculated differently from non-GAAP measures used by other companies, which reduces their usefulness as comparative measures. We encourage analysts, investors and other interested parties to use these non-
Previous wording
The following summarizes changes in financial performance for the three months ended March 31, 2024, compared to the three months ended March 31, 2023:
Current wording
The following summarizes changes in financial performance for the three and six months ended June 30, 2024, compared to the three and six months ended June 30, 2023. “YTD” represents the six month periods ended June 30, 2024 and 2023, respectively:
Previous wording
The following summarizes changes in certain operational and financial metrics for the three months ended March 31, 2024, compared to the three months ended March 31, 2023 (continued from previous page):
Current wording
The following summarizes changes in certain operational and financial metrics for the six months ended June 30, 2024, compared to the six months ended June 30, 2023 (continued from previous page):
Previous wording
The following table includes operational and financial metrics for our Options, North American Equities, Europe and Asia Pacific, Futures, and Global FX segments. The following summarizes changes in certain operational and financial metrics for the three months ended March 31, 2024 compared to the three months ended March 31, 2023:
Current wording
The following table includes operational and financial metrics for our Options, North American Equities, Europe and Asia Pacific, Futures, and Global FX segments. The following summarizes changes in certain operational and financial metrics for the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023:
Previous wording
Total revenues for the three months ended March 31, 2024 decreased $31.0 million, or 3%, compared to the same period in 2023 primarily due to a decrease in cash and spot markets and derivatives markets revenue, driven by a decrease in the Section 31 fee rate following a rate change in February 2023, coupled with a decline in volumes traded on the Options, European Equities, and U.S. Equities exchanges, partially offset by an increase in access and capacity fees and proprietary market data across segments.
Current wording
Total revenues for the three months ended June 30, 2024 increased $66.2 million, or 7%, compared to the same period in 2023 primarily due to increases in cash and spot markets and derivatives markets revenue, driven by an increase in the Section 31 fee rate following a rate change in May 2024, coupled with an increase in other revenue attributable to Cboe Clear Europe and an increase in volumes traded on the Cboe futures exchange. Total revenues for the six months ended June 30, 2024 increased $35.2 million, or 2%, compared to the same period in 2023 primarily due to an increase in cash and spot markets revenue, driven by an increase in other revenue attributable to Cboe Clear Europe, coupled with an increase in access and capacity fees and proprietary market data across segments, partially offset by a decrease in industry market data fees in the North American Equities and Options segments.
Previous wording
The following summarizes changes in revenues for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 (in millions, except percentages):
Current wording
The following summarizes changes in revenues for the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023 (in millions, except percentages):
Previous wording
Cash and spot markets revenues less cost of revenues was relatively flat for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to an increase in net other revenue, partially offset by decreases in industry market data fees and net regulatory fees. Net other revenue increased primarily due to an increase in interest income attributable to Cboe Clear Europe as a result of the changing interest rate environment, coupled with additional interest earned in accordance with its investment policy. Industry market data fees decreased primarily due to a decrease in U.S. tape plan revenue driven by a decrease in audit recoveries. Net regulatory fees decreased primarily due to a decrease in regulatory assessments and fines within the North American Equities segment. See Note 12 (“Clearing Operations”) for additional information on Cboe Clear Europe’s investment policy.
Current wording
Cash and spot markets revenue increased for the three months ended June 30, 2024 compared to the same period in 2023 primarily due to increases in regulatory fees and other revenue. Regulatory fees increased primarily due to a 109% increase in the Section 31 fee rate, from an average rate of $8.00 per million dollars of covered sales for the three months ended June 30, 2023 to an average rate of $16.70 per million dollars of covered sales for the three months ended June 30, 2024. Other revenue increased primarily due to an increase in interest income attributable to Cboe Clear Europe as a result of the changing interest rate environment, coupled with additional interest earned in accordance with its investment policy. See Note 12 (“Clearing Operations”) for additional information.
Previous wording
Cash and spot markets revenue decreased for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to decreases in regulatory fees and transaction and clearing fees, partially offset by an increase in other revenue. Regulatory fees decreased primarily due to a 54% decrease in the Section 31 fee rate, from an average rate of $17.41 per million dollars of covered sales for the three months ended March 31, 2023 to an average rate of $8.00 per million dollars of covered sales for the three months ended March 31, 2024. Transaction and clearing fees decreased primarily due to a 13% decrease in European Equities matched ADNV, a slight decline in total touched shares on the U.S. Equities exchanges, and a decrease in the number of trading days on the European and U.S. Equities exchanges. Other revenue increased primarily due to an increase in interest income attributable to Cboe Clear Europe as a result of the changing interest rate environment, coupled with additional interest earned in accordance with its investment policy. See Note 12 (“Clearing Operations”) for additional information.
Current wording
Cash and spot markets revenue increased for the six months ended June 30, 2024 compared to the same period in 2023 primarily due to increases in other revenue and regulatory fees, partially offset by a decrease in industry market data fees. Other revenue increased primarily due to an increase in interest income attributable to Cboe Clear Europe as a result of the changing interest rate environment, coupled with additional interest earned in accordance with its investment policy. See Note 12 (“Clearing Operations”) for additional information. Regulatory fees increased primarily due to an increase in notional volumes on the U.S. Equities exchanges, partially offset by a 3% decrease in the Section 31 fee rate, from an average rate of $12.71 per million dollars of covered sales for the six months ended June 30, 2023 to an average rate of $12.35 per million dollars of covered sales for the six months ended June 30, 2024. Industry market data fees decreased primarily due a decrease in U.S. tape plan revenue driven by a 1% decline in market share on the U.S. Equities exchanges.
Previous wording
Data and access solutions revenue increased for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to increases in access and capacity fees and proprietary market data fees. Access and capacity fees increased primarily due to increased physical port fees in the North American Equities, Options, and Europe and Asia Pacific segments and increased logical port fees in the Options, Europe and Asia Pacific and Futures segments, both driven by increases in pricing and subscribers. Proprietary market data fees increased primarily due to increases in proprietary market data fees in the Options, Europe and Asia Pacific, and North American Equities segments.
Current wording
Data and access solutions revenue increased for the six months ended June 30, 2024 compared to the same period in 2023 primarily due to increases in access and capacity fees, proprietary market data fees, and licensing revenue within the Options segment. Access and capacity fees increased primarily due to increased physical and logical port fees in the Options, North American Equities, and Europe and Asia Pacific segments, both driven by increases in pricing and subscribers. Proprietary market data fees increased primarily due to increases in proprietary market data fees in the Options, North American Equities, and Europe and Asia Pacific segments.
Previous wording
Derivatives markets revenue decreased for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to decreases in transaction and clearing fees and regulatory fees. Transaction and clearing fees decreased primarily due to a 1% decline in multi-listed options market share, a 3% decrease in multi-listed options ADV, a decrease in routed trades on the Options exchanges, and a decrease in the number of trading days on the Options exchanges, partially offset by a 14% increase in index options ADV. Regulatory fees decreased primarily due to a 54% decrease in the Section 31 fee rate, from an average rate of $17.41 per million dollars of covered sales for the three months ended March 31, 2023 to an average rate of $8.00 per million dollars of covered sales for the three months ended March 31, 2024.
Current wording
Derivatives markets revenue increased for the three months ended June 30, 2024 compared to the same period in 2023 primarily due to increases in transaction and clearing fees and regulatory fees. Transaction and clearing fees increased primarily due to a 28% increase in futures ADV, coupled with a 9% increase in index options ADV, partially offset by a 2% decrease in multi-listed options ADV and a decrease in routed trades on the Cboe options exchanges. Regulatory fees increased primarily due to a 109% increase in the Section 31 fee rate, from an average rate of $8.00 per million dollars of covered sales for the three months ended June 30, 2023 to an average rate of $16.70 per million dollars of covered sales for the three months ended June 30, 2024, partially offset by a decrease in options regulatory fees (“ORF”).
Previous wording
The following tables reconcile the disaggregated cost of revenues captions presented on the condensed consolidated statements of income to the net revenue captions presented on the condensed consolidated statements of income for the three months ended March 31, 2024 and 2023, respectively (in millions):
Current wording
The following tables reconcile the disaggregated cost of revenues captions presented on the condensed consolidated statements of income to the net revenue captions presented on the condensed consolidated statements of income for the three and six months ended June 30, 2024 and 2023, respectively (in millions):
Previous wording
Total cost of revenues decreased for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to decreased derivatives markets and cash and spot markets costs of revenues, driven by a decrease in liquidity payments as a result of multi-listed options declining market share and a decrease in the number of trading days, coupled with a decrease in Section 31 fees as a result of a decrease in the Section 31 fee rate, partially offset by an increase in operating interest expense attributable to Cboe Clear Europe.
Current wording
Total cost of revenues increased for the three months ended June 30, 2024 compared to the same period in 2023 primarily due to increased cash and spot markets cost of revenues, driven by an increase in the Section 31 fee rate and an increase in operating interest expense attributable to Cboe Clear Europe, partially offset by a decrease in derivatives markets cost of revenues, driven by a decrease in liquidity payments on the Cboe options exchanges.
Previous wording
The following summarizes changes in the disaggregated cost of revenues for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 (in millions, except percentages):
Current wording
The following summarizes changes in the disaggregated cost of revenues for the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023 (in millions, except percentages):
Previous wording
Routing and clearing fees decreased for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to a decrease in routed trades on the Options exchanges, coupled with a decrease in routed shares on the U.S. Equities exchanges.
Current wording
Routing and clearing fees decreased for the three months ended June 30, 2024 compared to the same period in 2023 primarily due to a decrease in routed trades on the Cboe options exchanges. Routing and clearing fees decreased for the six months ended June 30, 2024 compared to the same period in 2023 primarily due to a decrease in routed trades on the Cboe options exchanges, coupled with a decrease in routed shares on the U.S Equities exchanges.
Previous wording
Royalty fees and other cost of revenues increased for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to an increase in operating interest expense attributable to Cboe Clear Europe as a result of the changing interest rate environment and additional interest expense in accordance with its investment policy, coupled with an increase in trading volumes of licensed products in the Options segment. See Note 12 (“Clearing Operations”) for additional information on Cboe Clear Europe’s investment policy.
Current wording
Royalty fees and other cost of revenues increased for the three and six months ended June 30, 2024 compared to the same periods in 2023 primarily due to an increase in operating interest expense attributable to Cboe Clear Europe as a result of the changing interest rate environment and additional interest expense in accordance with its investment policy, coupled with an increase in trading volumes of licensed products in the Options segment. See Note 12 (“Clearing Operations”) for additional information on Cboe Clear Europe’s investment policy.
Previous wording
Revenues less cost of revenues increased $30.7 million, or 7% for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to increases in derivatives markets revenues less cost of revenues driven by an increase in volumes traded on the Options exchanges, coupled with an increase in access and capacity fees and proprietary market data across segments, partially offset by an increase in royalty fees in the Options segment.
Current wording
Revenues less cost of revenues increased $46.7 million, or 10%, and $77.4 million, or 8%, for the three and six months ended June 30, 2024, respectively, compared to the same periods in 2023 primarily due to increases in derivatives markets revenues less cost of revenues driven by an increase in volumes traded on the Cboe options exchanges, coupled with an increase in RPC and net capture on the Options, U.S. Equities and European Equities exchanges, as applicable, increase in access and capacity fees and proprietary market data across segments, and an increase in net other revenue attributable to Cboe Clear Europe.
Previous wording
The following summarizes the components of revenues less cost of revenues for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 (in millions, except percentages):
Current wording
The following summarizes the components of revenues less cost of revenues for the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023 (in millions, except percentages):
Previous wording
Data and access solutions revenues less cost of revenues increased for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to increases in access and capacity fees and proprietary market data fees. Access and capacity fees increased primarily due to increased physical port fees in the North American Equities, Options, and Europe and Asia Pacific segments and increased logical port fees in the Options, Europe and Asia Pacific and Futures segments, both driven by increases in pricing and subscribers. Proprietary market data fees increased primarily due to increases in proprietary market data fees in the Options, Europe and Asia Pacific, and North American Equities segments.
Current wording
Data and access solutions revenue increased for the six months ended June 30, 2024 compared to the same period in 2023 primarily due to increases in access and capacity fees, proprietary market data fees, and licensing revenue within the Options segment. Access and capacity fees increased primarily due to increased physical and logical port fees in the Options, North American Equities, and Europe and Asia Pacific segments, both driven by increases in pricing and subscribers. Proprietary market data fees increased primarily due to increases in proprietary market data fees in the Options, North American Equities, and Europe and Asia Pacific segments.
Previous wording
The following summarizes changes in operating expenses for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 (in millions, except percentages):
Current wording
The following summarizes changes in operating expenses for the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023 (in millions, except percentages):
Previous wording
Compensation and benefits increased for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to a $8.1 million increase in salaries and bonuses driven by increased headcount, partially offset by a $5.2 million decrease in equity compensation due to a change in the vesting requirements for new equity award agreements, which provide for additional vesting requirements after an applicable retirement date. See Note 17 (“Stock-Based Compensation”) for additional information.
Current wording
Compensation and benefits increased for the three and six months ended June 30, 2024 compared to the same periods in 2023 primarily due to increases in salaries, bonuses, and payroll taxes of $8.1 million and $18.1 million, respectively, driven by increased headcount, increases in bonuses from strong Company performance year to date, and merit increases. For the six months ended June 30, 2024, the increase in compensation and benefits was partially offset by a $4.8 million decrease in equity compensation compared to the same period in 2023 due to a change in the vesting requirements for new equity award agreements, which provide for additional vesting requirements after an applicable retirement date. See Note 17 (“Stock-Based Compensation”) for additional information.
Previous wording
Depreciation and amortization decreased for the three months ended March 31, 2024 compared to the same period in 2023 due to a decline in amortization under the discounted cash flow method for the intangibles acquired in the Merger.
Current wording
Depreciation and amortization decreased for the three and six months ended June 30, 2024 compared to the same periods in 2023 due to a decline in amortization under the discounted cash flow method for the intangibles acquired in the Merger.
Previous wording
Technology support services increased for the three months ended March 31, 2024 compared to the same period in 2023 due to increases in software maintenance, market data technology support, and primary data center hosting expenses, partially offset by decreases in hardware maintenance.
Current wording
Technology support services decreased for the three and six months ended June 30, 2024 compared to the same periods in 2023 due to decreases in hardware maintenance and purchases, partially offset by increases in software maintenance, market data services, and software licenses and subscriptions.
Previous wording
Travel and promotional expenses increased for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to increases in marketing and advertising expenses driven by advertising campaigns and sponsorships.
Current wording
Travel and promotional expenses decreased for the three and six months ended June 30, 2024 compared to the same periods in 2023 primarily due to decreases in marketing and advertising expenses driven by the Company’s rebranding, advertising campaigns and sponsorships, and special events in the prior year.
Previous wording
Facilities costs decreased for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to a decrease in real estate taxes.
Current wording
Facilities costs decreased for the three and six months ended June 30, 2024 compared to the same periods in 2023 primarily due to a decrease in accrued real estate taxes.
Previous wording
Acquisition-related costs decreased for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to a decrease in professional fees and retention-related compensation costs associated with prior acquisitions.
Current wording
Acquisition-related costs decreased for the three and six months ended June 30, 2024 compared to the same periods in 2023 primarily due to a decrease in professional fees and retention-related compensation costs associated with prior acquisitions.
Previous wording
Other expenses increased for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to an increase in bad debt expense related to provisions for expected credit losses.
Current wording
Other expenses increased for the three and six months ended June 30, 2024 compared to the same periods in 2023 primarily due to an increase in contingent consideration related to prior acquisitions. For the three months ended June 30, 2024, the increase in other expenses was partially offset by a decrease in bad debt expense provisions compared to the same period in 2023.
Previous wording
As a result of the items above, operating income for the three months ended March 31, 2024 was $282.4 million, compared to operating income of $247.9 million for the three months ended March 31, 2023, an increase of $34.5 million.
Current wording
As a result of the items above, operating income for the three months ended June 30, 2024 was $210.1 million, compared to operating income of $244.8 million for the three months ended June 30, 2023, a decrease of $34.7 million.
Previous wording
Interest expense decreased for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to repayments on the Term Loan in 2023, which was paid off in the fourth quarter of 2023.
Current wording
Interest expense decreased for the three and six months ended June 30, 2024 compared to the same periods in 2023 primarily due to repayments on the Term Loan in 2023, which was paid off in the fourth quarter of 2023.
Previous wording
Interest income increased for the three months ended March 31, 2024 compared to the same period in 2023 primarily due to increases in interest rates in 2024.
Current wording
Interest income increased for the three and six months ended June 30, 2024 compared to the same periods in 2023 primarily due to increases in interest rates in 2024.
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Rearranged current paragraphs (8)
Current report — wording carried from elsewhere
The Company operates six reportable business segments: Options, North American Equities, Europe and Asia Pacific, Futures, Global FX, and Digital, which is reflective of how the Company's chief operating decision-maker reviews and operates the business, as discussed in Note 1 (“Organization and Basis of Presentation”). Segment performance is primarily evaluated based on operating income (loss). The Company’s chief operating decision-maker does not use
Current report — wording carried from elsewhere
where we rebate liquidity takers for executing against an order resting on our book, which is also recorded as a cost of revenues.
Current report — wording carried from elsewhere
GAAP measures as supplemental information to the GAAP financial measures included herein, including our condensed consolidated financial statements, to enhance their analysis and understanding of our performance and in making comparisons. Please see the footnotes below for definitions, additional information, and reconciliations from the closest GAAP measure.
Current report — wording carried from elsewhere
The following is a reconciliation of net income allocated to common stockholders to EBITDA and adjusted EBITDA (in millions) for the six months ended June 30, 2024 and 2023, respectively:
Current report — wording carried from elsewhere
Data and access solutions revenue increased for the three months ended June 30, 2024 compared to the same period in 2023 primarily due to increases in access and capacity fees and proprietary market data fees. Access and capacity fees increased primarily due to increased physical and logical port fees in the North American Equities, Options, and Europe and Asia Pacific segments, both driven by increases in pricing. Proprietary market data fees increased primarily due to increases in proprietary market data fees in the North American Equities, Options, and Futures segments.
Current report — wording carried from elsewhere
Data and access solutions revenue increased for the three months ended June 30, 2024 compared to the same period in 2023 primarily due to increases in access and capacity fees and proprietary market data fees. Access and capacity fees increased primarily due to increased physical and logical port fees in the North American Equities, Options, and Europe and Asia Pacific segments, both driven by increases in pricing. Proprietary market data fees increased primarily due to increases in proprietary market data fees in the North American Equities, Options, and Futures segments.
Current report — wording carried from elsewhere
Cash and cash equivalents include cash in banks and all non-restricted, highly liquid investments, including short-term repurchase agreements, with original maturities of three months or less at the time of purchase. Cash and cash
Current report — wording carried from elsewhere
minimum regulatory capital requirements of $171.2 million as of June 30, 2024, which are subject to potential applicable regulatory restrictions and approvals and potential associated tax costs.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
generated from the consolidated tape plans, the licensing of proprietary equities market data, routing services, and access and capacity services.
Previous report — wording carried elsewhere
The following summarizes changes in certain operational and financial metrics for the three months ended March 31, 2024, compared to the three months ended March 31, 2023:
Previous report — wording carried elsewhere
index options ADV, partially offset by an increase in royalty fees due to an increase in trading volumes of licensed products in the Options segment.
Previous report — wording carried elsewhere
partially offset by the change in Section 31 fees payable and the change in net income for the three months ended March 31, 2024 compared to the three months ended March 31, 2023.