Cboe Global Markets Inc
For the period ended Mar 31, 2025. Filed May 2, 2025.
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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.
Mar 31, 2025 · Filed May 2, 2025
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 2024-09-30; filed 2024-11-01.
0001628280-24-044657
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-02.
0001628280-25-021680
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 251 previous paragraphs and 226 current paragraphs.
116 unchanged; 82 reworded; 24 added; 51 removed; 2 previous and 4 current paragraphs rearranged.
Tables are not compared: 27 previous and 25 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 (24)
Current report
The Company previously operated six reportable business segments as of December 31, 2024. As of January 1, 2025, the Company operates five reportable business segments: Options, North American Equities, Europe and Asia Pacific, Futures, and Global FX, which is reflective of how the Company's CODM reviews and operates the business, as discussed in Note 1 (“Organization and Basis of Presentation”). The Company's reportable business segments represent strategic business units that offer different products and services across different geographic areas. The Company's CODM is the chief executive officer. The CODM function is supported by business segment management and leadership personnel who lead the day-to-day operations of each reportable business segment.
Current report
Comparative-period results have been presented for historical purposes but have not been recast as the historic results of the Digital segment were not material, nor do they materially impact the financial results, trends, or forecasts of the Futures segment. As a result, for the three months ended March 31, 2025, operating results included within the Digital operating segment are presented within the Futures reporting segment. See Note 1 (“Organization and Basis of Presentation”) and Note 14 ("Segment Reporting") for more information.
Current report
(2)Adjusted operating margin represents adjusted operating income divided by revenues less cost of revenues.
Current report
(3)Operating EBITDA margin represents operating EBITDA divided by revenues less cost of revenues.
Current report
(4)Adjusted operating EBITDA margin represents adjusted operating EBITDA divided by revenues less cost of revenues.
Current report
(5)EBITDA margin represents EBITDA divided by revenues less cost of revenues.
Current report
The following is a reconciliation of operating income to adjusted operating income (in millions) for the three months ended March 31, 2025 and 2024, respectively:
Current report
The following is a reconciliation of operating income to operating EBITDA and adjusted operating EBITDA (in millions) for the three months ended March 31, 2025 and 2024, respectively:
Current report
(1)The Digital segment results are prospectively included in the Futures segment beginning in the first quarter of 2025. Digital results from the first quarter of 2024 have been retained in the former Digital segment for comparative purposes. See Note 1 ("Organization and Basis of Presentation") for additional information.
Current report
Note, as of January 2025, European equities market share cleared excludes market volume not cleared within the Cboe Clear Europe pan-European equities market space. Prior periods have been restated in accordance with this methodology.
Current report
Derivatives markets revenues less cost of revenues increased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to an increase in net transaction and clearing fees driven by a 17% increase in index options ADV and a 25% increase in multi-listed options ADV.
Current report
Total operating expenses for the three months ended March 31, 2025 compared to the same period in 2024 decreased $8.4 million, or 4%, primarily due to a decrease in depreciation and amortization.
Current report
Compensation and benefits increased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to a $2.3 million increase in salaries and wages primarily due to merit and headcount increases and a $1.7 million increase in severance expenses, partially offset by a $2.6 million increase in capitalized wages as a result of an increase in internally developed software.
Current report
Technology support services increased for the three months ended March 31, 2025 compared to the same period in 2024 due to increases in market data support, secondary data center hosting, and cloud services, partially offset by a decrease in primary data center hosting.
Current report
Other expenses decreased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to decreases in bad debt expense provisions, insurance, and impairment of physical assets compared to the same period in 2024.
Current report
Interest expense declined slightly during the three months ended March 31, 2025 compared to the same period in 2024 primarily due to a decrease in interest expense from Cboe Clear Europe operations.
Current report
Interest income increased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to interest earned on higher cash balances.
Current report
(Loss) Earnings on Investments, net
Current report
Other Income, Net
Current report
Other income, net decreased for the three months ended March 31, 2025 compared to the same period in 2024 due to the gain on revaluation of Cboe Digital non-recourse notes and warrants earned in the first quarter of 2024, which did not recur in the first quarter of 2025, coupled with an increase in foreign currency exchange loss, partially offset by an increase in dividend income from minority investments compared to the same period in 2024.
Current report
The effective tax rate from continuing operations was 28.4% and 28.3% for the three months ended March 31, 2025 and 2024, respectively, primarily due to a decrease in excess tax benefits from the vesting of equity awards during the first quarter of 2025.
Current report
(1)The Digital segment results are prospectively included in the Futures segment beginning in the first quarter of 2025. Digital results from the first quarter of 2024 have been retained in the former Digital segment for comparative purposes. See Note 1 ("Organization and Basis of Presentation") for additional information.
Current report
(1)The Digital segment results are prospectively included in the Futures segment beginning in the first quarter of 2025. Digital results from the first quarter of 2024 have been retained in the former Digital segment for comparative purposes. See Note 1 ("Organization and Basis of Presentation") for additional information.
Current report
The following summarizes revenues less cost of revenues, operating expenses, operating loss, operating margin, EBITDA, and EBITDA margin for the former Digital segment for the three months ended March 31, 2024 (in millions, except percentages) for the purposes of providing comparative information. The Digital segment results are prospectively included in the Futures segment beginning in the first quarter of 2025. See Note 1 ("Organization and Basis of Presentation") for additional information:
Removed paragraphs (51)
Previous report
Recent Developments
Previous report
Pyth Tokens Unlocking
Previous 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.
Previous report
Digital. The Digital segment includes 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. Prior to May 31, 2024, the Digital segment also included a U.S.-based spot digital asset trading market. As of May 31, 2024, the Cboe Digital spot market is closed for all participant and trading purposes. 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 intends to continue to present Digital as a distinct reportable business segment through at least the year ending December 31, 2024.
Previous report
Impairment of Intangible Assets
Previous report
Impairment of intangible assets consists of charges to impair intangible assets if the carrying value exceeds the fair value.
Previous report
The following summarizes changes in certain operational and financial metrics for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023:
Previous report
Cash and spot markets revenue increased for the nine months ended September 30, 2024 compared to the same period in 2023 primarily due to increases in regulatory fees, other revenue, and transaction and clearing fees, partially offset by a decrease in industry market data fees. Regulatory fees increased primarily due to a 57% increase in the Section 31 fee rate, from an average rate of $11.14 per million dollars of covered sales for the nine months ended September 30, 2023 to an average rate of $17.50 per million dollars of covered sales for the nine months ended September 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 due to a change in its investment policy. See Note 12 (“Clearing Operations”) for additional information. Transaction and clearing fees increased primarily due to a 7% increase in Global FX ADNV, pricing changes in North American Equities, a 1% increase in European Equities matched ADNV, an 85% increase in Japanese Equities ADNV, and a 1% increase in trades cleared by Cboe Clear Europe. Industry market data fees decreased primarily due to a decrease in U.S. tape plan revenue driven by a 1% decline in market share on the U.S. Equities exchanges.
Previous report
Data and access solutions revenue increased for the nine months ended September 30, 2024 compared to the same period in 2023 primarily due to increases in proprietary market data fees and access and capacity fees within the Options,
Previous report
Derivatives markets revenue increased for the nine months ended September 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 12% increase in index options ADV, coupled with a 14% increase in Futures ADV, partially offset by a 2% decrease in multi-listed options ADV. Regulatory fees increased primarily due to a 57% increase in the Section 31 fee rate, from an average rate of $11.14 per million dollars of covered sales for the nine months ended September 30, 2023 to an average rate of $17.50 per million dollars of covered sales for the nine months ended September 30, 2024.
Previous report
Total cost of revenues increased for the nine months ended September 30, 2024 compared to the same period in 2023 primarily due to increased cash and spot markets cost of revenues, as a result of an increase in the Section 31 fee rate, coupled with an increase in other cost of revenues, as a result of an increase in interest expense related to Cboe Clear Europe, and an increase in royalty fees due to increased royalties for licensed products, partially offset by a decrease in liquidity payments on the Cboe Options exchanges as a result of a decrease in multi-listed options market share and ADV.
Previous report
Liquidity payments decreased for the nine months ended September 30, 2024 compared to the same period in 2023 primarily due to a decrease in liquidity payments on the Cboe Options exchanges, as a result of a 2% decline in market share and a 2% decrease in ADV for multi-listed options.
Previous report
Royalty fees and other cost of revenues increased for the nine months ended September 30, 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 a change in 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 report
Revenues less cost of revenues increased $128.9 million, or 9%, for the nine months ended September 30, 2024 compared to the same period in 2023 primarily due to an increase in derivatives markets revenues less cost of revenues, driven by an increase in net capture and volumes on the Options, European Equities, Futures, and North American Equities exchanges, an increase in access and capacity fees across segments, and an increase in net other revenue attributable to Cboe Clear Europe, partially offset by a decrease in industry market data fees.
Previous report
Cash and spot markets revenues less cost of revenues increased for the nine months ended September 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 and 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 12% increase in U.S. Equities net capture, a 13% increase in European Equities net capture, a 7% increase in Global FX ADNV, and an 85% 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 due to a change in 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.
Previous report
Data and access solutions revenues less cost of revenues increased for the three months ended September 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, driven by increased customer demand, led by the new North American Equities' dedicated cores product. Proprietary market data fees increased primarily due to increases in proprietary market data fees in the Options, Europe and Asia Pacific, and Futures segments.
Previous report
Derivatives markets revenues less cost of revenues increased for the three months ended September 30, 2024 compared to the same period in 2023 primarily due to an increase in net transaction and clearing fees driven by a 13% increase in index options ADV, a 15% increase in multi-listed options RPC, and a 19% 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.
Previous report
Derivatives markets revenues less cost of revenues increased for the nine months ended September 30, 2024 compared to the same period in 2023 primarily due to an increase in net transaction and clearing fees driven by a 12% increase in index options ADV, a 2% increase in index options RPC, and a 14% 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.
Previous report
Total operating expenses for the three months ended September 30, 2024 compared to the same period in 2023 increased $15.3 million, or 7%, primarily due to an increase in compensation and benefits, partially offset by a decrease in depreciation and amortization. Total operating expenses for the nine months ended September 30, 2024 compared to the same period in 2023 increased $92.9 million, or 14%, primarily due to the impairment of intangible assets charge recorded to the Digital segment in the second quarter of 2024.
Previous report
Compensation and benefits increased for the three months ended September 30, 2024 compared to the same period in 2023 primarily due to an $8.9 million increase in equity compensation as a result of expense reversals related to executive departures in 2023 that did not recur in 2024, a $4.8 million increase in bonuses due to strong Company performance year to date, a $4.2 million increase in benefits related to an increase in the market value of the non-qualified deferral plan assets and increases in payroll benefits, and a $3.3 million increase in salaries and wages primarily due to merit increases. Compensation and benefits increased for the nine months ended September 30, 2024 compared to the same period in 2023 primarily due to a $13.7 million increase in salaries and wages primarily due to merit increases, a $10.0 million increase in bonuses due to strong Company performance year to date, a $6.7 million increase in benefits related to increases in payroll benefits and an increase in the market value of the non-qualified deferral plan assets, and a $4.1 million increase in equity compensation as a result of expense reversals related to executive departures in 2023 that did not recur in 2024, partially offset by a change in the retirement vesting requirements for new equity award agreements. See Note 17 ("Stock-Based Compensation") for additional information.
Previous report
Technology support services increased for the three months ended September 30, 2024 compared to the same period in 2023 due to increases in software maintenance, cloud services, and software licenses and subscriptions, partially offset by decreases in hardware purchases, network and phone connectivity and hardware maintenance. Technology support services decreased for the nine months ended September 30, 2024 compared to the same period in 2023 due to decreases in hardware purchases and maintenance and network and phone connectivity, partially offset by increases in software maintenance, market data, software licenses and subscriptions, and cloud services.
Previous report
Impairment of Intangible Assets
Previous report
Impairment of intangible assets increased for the nine months ended September 30, 2024 compared to the same period in 2023 due to the impairment of intangible assets recognized in the Digital segment in the second quarter of 2024.
Previous report
Other expenses decreased for the three months ended September 30, 2024 compared to the same period in 2023 primarily due to a decrease in contingent consideration related to prior acquisitions and a decrease in bad debt expense provisions compared to the same period in 2023. Other expenses increased for the nine months ended September 30, 2024 compared to the same period in 2023 primarily due to an increase in contingent consideration related to prior acquisitions, partially offset by a decrease in bad debt expense provisions compared to the same period in 2023.
Previous report
As a result of the items above, operating income for the nine months ended September 30, 2024 was $799.9 million, compared to operating income of $763.9 million for the nine months ended September 30, 2023, an increase of $36.0 million.
Previous report
Interest expense decreased for the three and nine months ended September 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 report
Interest income increased for the three and nine months ended September 30, 2024 compared to the same periods in 2023 primarily due to a one-time true up of interest earned from available-for-sale securities, coupled with increases in interest rates in 2024.
Previous report
Earnings on Investments
Previous report
Other Income (Expense), Net
Previous report
Net other income increased for the three months ended September 30, 2024 compared to the same period in 2023 primarily due to $3.0 million in dividend income from the Company’s minority ownership of Vest Financial Group, Inc. (“Vest”), partially offset by a $1.2 million impairment charge for the Company's minority investment in StratiFi Technologies Inc. For the nine months ended September 30, 2024, the decrease in net other income was driven by a $16.0 million impairment charge for the Company's minority investment in Globacap Technology Limited recorded in the second quarter of 2024, partially offset by a $5.0 million increase in dividend income related to Vest in 2024.
Previous report
As a result of the above, income before income tax provision for the nine months ended September 30, 2024 was $804.1 million, compared to income before income tax provision of $760.1 million for the nine months ended September 30, 2023, an increase of $44.0 million.
Previous report
The effective tax rate from continuing operations was 29.3% and 22.9% for the three months ended September 30, 2024 and 2023, respectively, and 29.3% and 27.7% for the nine months ended September 30, 2024 and 2023, respectively.
Previous report
The higher effective tax rate for the three and nine months ended September 30, 2024 compared to the same periods in 2023 is primarily due to releases of penalties and interest associated with Section 199 positions in 2023.
Previous report
As a result of the items above, net income for the nine months ended September 30, 2024 was $568.4 million, compared to net income of $549.4 million for the nine months ended September 30, 2023, an increase of $19.0 million.
Previous report
Revenues less cost of revenues increased $80.3 million for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 primarily due to an increase in net transaction and clearing fees driven by a 12% increase in index options ADV, a 5% increase in multi-listed options RPC, and a 2% increase in index options RPC, coupled with an increase in physical and logical port fees, partially offset by an increase in royalty fees due to an increase in trading volumes of licensed products and a 2% decrease in multi-listed options ADV. For the nine months ended September 30, 2024, operating income for the Options segment increased $35.0 million compared to the nine months ended September 30, 2023 primarily due to an increase in revenues less cost of revenues, partially offset by an increase in operating expenses. Operating expenses increased $45.3 million for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 primarily due to increases in compensation and benefits, professional fees and outside services, travel and promotional expenses, and technology support services, partially offset by a decrease in depreciation and amortization.
Previous report
Revenues less cost of revenues increased $9.9 million for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 primarily due to an increase in net transaction and clearing fees driven by a 12% increase in U.S. Equities net capture, an increase in physical and logical port fees, and an increase in proprietary market data revenue, 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 and a decrease of 2% in U.S. Equities total touched shares. For the nine months ended September 30, 2024, operating income for the North American Equities segment increased $41.3 million compared to the nine months ended September 30, 2023 due to a decrease in operating expenses, coupled with an increase in revenues less cost of revenues. Operating expenses decreased $31.4 million for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 primarily due to decreases in depreciation and amortization, professional fees and outside services, compensation and benefits, and technology support services.
Previous report
Revenues less cost of revenues increased $21.8 million for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 primarily due an increase in net transaction and clearing fees driven by a 13% increase in European Equities net capture, an 85% increase in Japanese Equities ADNV, a 13% increase in net fee per settlement by Cboe Clear Europe, and an increase in operating interest income attributable to Cboe Clear Europe. For the nine months ended September 30, 2024, operating income for the Europe and Asia Pacific segment increased $11.3 million compared to the nine months ended September 30, 2023 primarily due to an increase in revenues less cost of revenues, partially offset by an increase in operating expenses. Operating expenses increased $10.5 million for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 primarily due to increases in compensation and benefits, professional fees and outside services, and technology support services, partially offset by a decrease in depreciation and amortization.
Previous report
Revenues less cost of revenues increased $10.6 million for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 primarily due to an increase in net transaction and clearing fees as a result of a 14% increase in ADV. For the nine months ended September 30, 2024, operating income for the Futures segment increased $14.2 million compared to the nine months ended September 30, 2023 primarily due to an increase in revenues less cost of revenues, coupled with a decrease in operating expenses. Operating expenses decreased $3.6 million for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 primarily due to decreases in compensation and benefits, professional fees and outside services, travel and promotional expenses, and technology support services.
Previous report
Revenues less cost of revenues increased $1.7 million for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 primarily due to an increase in net transaction and clearing fees driven by a
Previous report
Revenues less cost of revenues increased $3.6 million for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 primarily due to an increase in net transaction and clearing fees driven by a 7% increase in ADNV, coupled with an increase in logical port fees. For the nine months ended September 30, 2024, operating income for the Global FX segment increased $6.8 million compared to the nine months ended September 30, 2023 primarily due to an increase in revenues less cost of revenues, coupled with a decrease in operating expenses. Operating expenses decreased $3.2 million for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 primarily due to a decrease in depreciation and amortization, partially offset by an increase in compensation and benefits.
Showing the first 40 of 51 passages. Open the source sections for the rest.
Reworded paragraphs (82)
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 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.
Current wording
Cboe’s subsidiaries include the largest options exchange and the third largest equities exchange operator in the U.S. In addition, the Company operates Cboe Europe, one of the largest equities 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 Clear U.S., an operator of a regulated clearinghouse, and Cboe Canada, 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 CODM 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 CODM 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 performance is primarily evaluated on operating income (loss). The CODM uses segment operating income (loss) to allocate resources (which includes, but is not limited to: employees, financial, or capital resources). The Company's CODM does not assess assets or income and expenses below operating income (loss) at the segment-level as key performance metrics. 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. The Company's CODM primarily reviews operating expenses at the consolidated level for purposes of evaluating actual results versus budgets.
Previous wording
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 the Cboe Digital spot market (“Cboe Digital spot market”). The Cboe Digital spot market is closed for all participant and trading purposes. In addition, the Company plans to transition its cash-settled Bitcoin and Ether futures contracts, currently available for trading on Cboe Digital Exchange, LLC's Digital Exchange ("Cboe Digital Exchange"), to CFE in the first half of 2025, pending regulatory review. The Company has brought Cboe Clear Digital under unified leadership with the Global Head of Clearing, and expects to continue to facilitate the clearing of cash-settled Bitcoin and Ether futures contracts.
Current wording
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. Effective May 31, 2024, the Cboe Digital spot market (“Cboe Digital spot market”) is closed for all participant and trading purposes. The Company has brought Cboe Clear U.S. (formerly, Cboe Clear Digital) under unified leadership with the Global Head of Clearing, and expects to continue to facilitate the clearing of cash-settled margin Bitcoin and Ether futures contracts. The Company retained and presented Digital as a reportable segment through December 31, 2024. As of January 1, 2025, the Company prospectively reorganized the Digital operating segment results into the Futures reporting segment as the Company expects to transition its cash-settled margin Bitcoin and Ether futures contracts, currently available for trading on the Cboe Digital Exchange, to CFE during the second quarter of 2025, pending regulatory review. Comparative-period results have not been recast as the historic results of the Digital segment were not material, nor do they materially impact the financial results, trends, or forecasts of the Futures segment. As a result, for the three months ended March 31, 2025, operating results included within the Digital operating segment are presented within the Futures reporting segment. See Note 1 ("Organization and Basis of Presentation") and Note 14 (“Segment Reporting”) for more information.
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 generated from the consolidated tape plans, the licensing of proprietary equities market data, routing services, and access and capacity services.
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’s order books. The North American Equities segment also includes corporate listing services on Cboe Canada, ETP listings on BZX, the Cboe Global Markets, Inc. common stock listing, and 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, a closing cross 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.
Current wording
Europe and Asia Pacific. The Europe and Asia Pacific segment includes the pan-European listed equities and derivatives transaction services, ETPs, including exchange traded funds, exchange traded notes, and 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 Japan. Cboe Europe operates lit and dark books, a periodic auctions book, a closing cross book, and two BIDS orderbooks, a Large-in-Scale (“LIS”) trading negotiation facility and predominantly for UK and Swiss symbols. Cboe NL, based in Amsterdam, operates similar business functionality to that offered by Cboe Europe (with the exception of Trajectory Crossing), 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. Cboe Clear Europe offers the clearing of equity and equity-like instruments for Cboe-operated and other regulated trading venues, the clearing of derivative transactions executed on CEDX, and has recently introduced a service to clear SFT. 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. 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.
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. As of January 1, 2025, the Futures segment prospectively includes all Digital operating activity, which includes Cboe Digital Exchange, a regulated futures exchange, and Cboe Clear U.S., a regulated clearinghouse, as well as revenue generated from the licensing of proprietary market data and from access and capacity services. The Company plans to transition the cash-settled margin Bitcoin and Ether futures contracts, currently available for trading on the Cboe Digital Exchange, to CFE in the second quarter of 2025, pending regulatory review.
Previous wording
•trading volumes in listed equity securities, options, futures, and ETPs in North America, Europe, and Asia Pacific, clearing volumes in listed equity securities and ETPs in Europe, volumes in digital assets, and volumes in institutional FX trading;
Current wording
•trading volumes in listed equity securities, options, futures, and ETPs in North America, Europe, and Asia Pacific, clearing volumes in listed equity securities, options, futures, and ETPs in Europe, and volumes in institutional FX trading;
Previous wording
•regulatory changes and obligations relating to market structure, digital assets and increased capital or margin requirements, and those which affect certain types of instruments, transactions, products, pricing structures, capital market participants or reporting or compliance requirements.
Current wording
•regulatory changes and obligations relating to market structure, increased capital or margin requirements, and those which affect certain types of instruments, transactions, products, pricing structures, capital market participants or reporting or compliance requirements.
Previous wording
A number of significant structural, political and monetary issues, global conflicts continue to confront the global economy, and instability could continue, resulting in an increased or subdued level of inflation, market volatility, potential recessions, supply chain constraints and costs, changes in trading volumes, greater uncertainty, inflationary increases in our expenses, and increased costs and uncertainties related to CAT and the ability to collect on the promissory notes related to the funding of CAT may have an adverse effect on our financial results.
Current wording
A number of significant structural, political, monetary, and global conflicts continue to confront the global economy, and instability could continue, resulting in an increased or subdued level of inflation, market volatility, potential recession, supply chain constraints and costs, trading volumes, uncertainty, expenses, costs due to potential new tariffs or changes to existing tariffs, and costs and uncertainties related to CAT and the ability to collect on the promissory notes related to the funding of CAT, may have an adverse effect on our financial results.
Previous wording
Revenue aggregated into cash and spot markets includes associated transaction and clearing fees, the portion of market data fees relating to associated U.S. tape plan market data fees, associated regulatory fees, and associated other revenue from the Company’s North American Equities, Europe and Asia Pacific, Global FX, and Digital segments.
Current wording
Revenue aggregated into cash and spot markets includes associated transaction and clearing fees, the portion of market data fees relating to associated U.S. tape plan market data fees, associated regulatory fees, and associated other revenue from the Company’s North American Equities, Europe and Asia Pacific, and Global FX segments.
Previous wording
Revenue aggregated into data and access solutions includes access and capacity fees, proprietary market data fees, and associated other revenue across the Company’s six segments.
Current wording
Revenue aggregated into Data Vantage includes access and capacity fees, proprietary market data fees, and associated other revenue across the Company’s five segments.
Previous wording
Includes associated transaction and clearing fees, the portion of market data fees relating to associated U.S. tape plan market data fees, associated regulatory fees, and associated other fees from the Company’s Options, Futures, Europe and Asia Pacific, and Digital segments.
Current wording
Revenue aggregated into derivatives markets includes associated transaction and clearing fees, the portion of market data fees relating to associated U.S. tape plan market data fees, associated regulatory fees, and associated other fees from the Company’s Options, Futures, and Europe and Asia Pacific segments.
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. On October 1, 2024 Cboe announced its plan to transition EDGA from an inverted fee model to a maker/taker fee model, effective November 1, 2024, subject to regulatory review.
Current wording
Liquidity payments are primarily correlated to the trading volume 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, Cboe Europe Equities and Derivatives, Cboe Clear U.S., Cboe Digital Exchange, and CFE as cost of revenue. BYX offers an inverted 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. Effective November 1, 2024, EDGA transitioned from an inverted fee model to a maker-taker fee model.
Previous wording
(“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.
Current wording
(“EMS”) fees incurred for U.S. Equities Off-Exchange order execution, as well as settlement costs incurred for the settlement processes executed by Cboe Clear Europe and Cboe Clear U.S.
Previous wording
Exchanges under the authority of the SEC (Cboe Options, C2, BZX, BYX, EDGX, and EDGA as well as CFE to the extent that CFE offers trading in security futures products) are assessed fees pursuant to the Exchange Act designed to recover the costs to the U.S. government of supervision and regulation of securities markets and securities professionals. We treat these fees as a pass-through charge to customers executing eligible listed equities and listed equity options trades. Accordingly, we recognize the amount that we are charged under Section 31 as a cost of revenues and the corresponding amount that we charge our customers as regulatory transaction fees revenue. Since the regulatory transaction fees recorded in revenues are equal to the Section 31 fees recorded in cost of revenues, there is no impact on our operating income. Cboe Trading, Cboe Europe, Cboe NL, BIDS, Cboe FX, Cboe Australia, Cboe Japan, Cboe Digital, and Cboe Canada Inc. are not U.S. national securities exchanges and, accordingly, are not charged Section 31 fees.
Current wording
Exchanges under the authority of the SEC (Cboe Options, C2, BZX, BYX, EDGX, and EDGA as well as CFE to the extent that CFE offers trading in security futures products) are assessed fees pursuant to the Exchange Act designed to recover the costs to the U.S. government of supervision and regulation of securities markets and securities professionals. We treat these fees as a pass-through charge to customers executing eligible listed equities and listed equity options trades. Accordingly, we recognize the amount that we are charged under Section 31 as a cost of revenues and the corresponding amount that we charge our customers as regulatory transaction fees revenue. Since the regulatory transaction fees recorded in revenues are equal to the Section 31 fees recorded in cost of revenues, there is no impact on our operating income. Cboe Trading, Cboe Europe, Cboe NL, BIDS, Cboe FX, Cboe Australia, Cboe Japan, Cboe Clear U.S., and Cboe Canada are not U.S. national securities exchanges and, accordingly, are not charged Section 31 fees.
Previous wording
Compensation and benefits represent our largest expense category and tend to be driven by our staffing requirements, financial performance, and the general dynamics of the employment market. Stock-based compensation is a non-cash expense related to employee equity awards. Stock-based compensation can vary depending on the quantity and fair value of the award on the date of grant and the related service period.
Current wording
Compensation and benefits represent our largest expense category and tend to be driven by our staffing requirements, financial performance, and the general dynamics of the employment market. Stock-based compensation is a non-cash expense related to employee equity awards. Stock-based compensation can vary depending on the quantity and fair value of the award on the grant date and the related service period.
Previous wording
Facilities costs primarily consist of expenses related to owned and leased properties including rent, maintenance, utilities, real estate taxes and telecommunications costs.
Current wording
Facilities costs primarily consist of expenses related to leased properties including rent, maintenance, utilities, real estate taxes, and telecommunications costs.
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, changes in contingent consideration.
Current wording
Other expenses represent costs necessary to support our operations that are not already included in the above categories, including, but not limited to, bad debt provisions and 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 (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.
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 related to the Company’s previously held minority investments, income earned related to the Company’s minority investments, and equity earnings or losses from our investments in other business ventures.
Previous wording
The following summarizes changes in financial performance for the three and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 2023. “YTD” represents the nine month periods ended September 30, 2024 and 2023, respectively:
Current wording
The following summarizes changes in financial performance for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. “YTD” represents the three month periods ended March 31, 2025 and 2024, respectively:
Previous wording
(1)EBITDA is defined as income before interest, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before acquisition-related costs, change in contingent consideration, impairment of intangible assets, loss (gain) on investment, costs related to the Cboe Digital wind down, gain on sale of property held for sale, contra-revenue associated with the Cboe Digital syndication wind down, gain on Cboe Digital non-recourse notes and warrants wind down, and income from investment. EBITDA and adjusted EBITDA do not represent, and should not be considered as, alternatives to net income as determined in accordance with GAAP. We have presented EBITDA and adjusted EBITDA because we consider them important supplemental measures of our performance and believe that they are frequently used by analysts, investors and other interested parties in the evaluation of companies. In addition, we use adjusted EBITDA as a measure of operating performance for preparation of our forecasts and evaluating our leverage ratio for the debt to earnings covenant included in our outstanding credit facility. Other companies may calculate EBITDA and adjusted EBITDA differently than we do. EBITDA and adjusted EBITDA have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP.
Current wording
(1)Adjusted operating income is defined as operating income before acquisition-related costs, amortization of acquired intangible assets, and costs related to the Cboe Digital wind down. Operating EBITDA is defined as operating income before depreciation and amortization. EBITDA is defined as income before interest, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before acquisition-related costs, earnings on investments adjustments, gain on revaluation of Cboe Digital non-recourse notes and warrants, and costs related to the Cboe Digital wind down. Adjusted operating EBITDA is calculated by adding back to Operating EBITDA acquisition-related costs and costs related to the Cboe Digital wind down. Operating EBITDA, EBITDA, adjusted EBITDA, adjusted operating income, and adjusted operating EBITDA do not represent, and should not be considered as, alternatives to net income as determined in accordance with GAAP. We have presented operating EBITDA, EBITDA, adjusted EBITDA, adjusted operating income, and adjusted operating EBITDA because we consider them important supplemental measures of our performance and believe that they are frequently used by analysts, investors and other interested parties in the evaluation of companies. In addition, we use adjusted EBITDA as a measure of operating performance for preparation of our forecasts and evaluating our leverage ratio for the debt to earnings covenant included in our outstanding credit facility. Other companies may calculate operating EBITDA, EBITDA, adjusted EBITDA, adjusted operating income, and adjusted operating EBITDA differently than we do. Operating EBITDA, EBITDA, adjusted EBITDA, adjusted operating income, and adjusted operating EBITDA have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP.
Previous wording
(3)Adjusted EBITDA margin represents adjusted EBITDA divided by revenues less cost of revenues.
Current wording
(6)Adjusted EBITDA margin represents adjusted EBITDA divided by revenues less cost of revenues.
Previous wording
(4)Adjusted earnings is defined as net income adjusted for amortization of acquired intangible assets, acquisition-related costs, change in contingent consideration, impairment of intangible assets, loss (gain) on investment, costs related to the Cboe Digital wind down, loss (gain) on sale of property held for sale, contra-revenue associated with the Cboe Digital syndication wind down, gain on Cboe Digital non-recourse notes and warrants wind down, income from investment, certain tax reserve changes, and net income or loss allocated to participating securities, net of the income tax effects of these adjustments. Adjusted earnings does not represent, and should not be considered as, an alternative to net income or loss, as determined in accordance with GAAP. We have presented adjusted earnings because we consider it an important supplemental measure of our performance and we use it as the basis for monitoring our own core operating financial performance relative to other operators of exchanges. We also believe that it is frequently used by analysts, investors and other interested parties in the evaluation of companies. We believe that investors may find this non-GAAP measure useful in evaluating our performance compared to that of peer companies in our industry. Other companies may calculate adjusted earnings differently than we do. Adjusted earnings has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP.
Current wording
(7)Adjusted earnings is defined as net income adjusted for acquisition-related costs, amortization of acquired intangible assets, earnings on investments adjustments, gain on revaluation of Cboe Digital non-recourse notes and warrants, costs related to the Cboe Digital wind down, certain tax reserve changes, and net income or loss allocated to participating securities, net of the income tax effects of these adjustments. Adjusted earnings does not represent, and should not be considered as, an alternative to net income or loss, as determined in accordance with GAAP. We have presented adjusted earnings because we consider it an important supplemental measure of our performance and we use it as the basis for monitoring our own core operating financial performance relative to other operators of exchanges. We also believe that it is frequently used by analysts, investors and other interested parties in the evaluation of companies. We believe that investors may find this non-GAAP measure useful in evaluating our performance compared to that of peer companies in our industry. Other companies may calculate adjusted earnings differently than we do. Adjusted earnings has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP.
Previous wording
(5)Adjusted diluted earnings per share represents adjusted earnings divided by diluted weighted average shares outstanding.
Current wording
(8)Adjusted diluted earnings per share represents adjusted earnings divided by diluted weighted average shares outstanding.
Previous wording
The following summarizes changes in certain operational and financial metrics for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023 (continued from previous page):
Current wording
The following summarizes changes in certain operational and financial metrics for the three months ended March 31, 2025, compared to the three months ended March 31, 2024 (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 and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 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 months ended March 31, 2025 compared to the three months ended March 31, 2024:
Previous wording
Note, the Digital segment is not included as results were not material for the three and nine months ended September 30, 2024 and 2023.
Current wording
Note, the Digital segment is not included as results were not material for the three months ended March 31, 2024. The Digital segment results are prospectively located in the Futures segment beginning in the first quarter of 2025.
Previous wording
(6)Net capture per 10,000 touched shares refers to transaction fees divided by the product of one-ten thousandth ADV of shares for Cboe Canada Inc. and the number of trading days.
Current wording
(6)Net capture per 10,000 touched shares refers to transaction fees divided by the product of one-ten thousandth ADV of shares of Cboe Canada and the number of trading days.
Previous wording
Total revenues for the three months ended September 30, 2024 increased $146.9 million, or 16%, 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 transaction and clearing fees, driven by increased volumes traded on the Cboe Options and European Equities exchanges, as well as pricing changes on the U.S. Equities exchanges. Total revenues for the nine months ended September 30, 2024 increased $182.1 million, or 6%, compared to the same period in 2023 primarily due to an increase in cash and spot markets and derivatives markets revenue, driven by an increase in the Section 31 fee rate following rate changes in 2023 and 2024, an increase in transaction and clearing fees, driven by increased volumes traded on the Cboe Options and Futures exchanges, and an increase in other revenue attributable to Cboe Clear Europe.
Current wording
Total revenues for the three months ended March 31, 2025 increased $237.8 million, or 25%, compared to the same period in 2024 primarily due to increases in cash and spot markets and derivatives markets revenue, driven by an increase in transaction and clearing fees, as a result of increased volumes traded on the Cboe options, Cboe U.S. equities, and Cboe European equities exchanges, coupled with an increase in the Section 31 fee rate following a rate change in May 2024.
Previous wording
The following summarizes changes in revenues for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023 (in millions, except percentages):
Current wording
The following summarizes changes in revenues for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 (in millions, except percentages):
Previous wording
Cash and spot markets revenue increased for the three months ended September 30, 2024 compared to the same period in 2023 primarily due to increases in regulatory fees, transaction and clearing fees, and other revenue, partially offset by a decrease in industry market data fees. Regulatory fees increased primarily due to a 248% 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 September 30, 2023 to an average rate of $27.80 per million dollars of covered sales for the three months ended September 30, 2024. Transaction and clearing fees increased primarily due to pricing changes in North American Equities, a 16% increase in European Equities matched ADNV, a 9% increase in Global FX ADNV, a 20% increase in trades cleared by Cboe Clear Europe, and a 117% increase in Japanese Equities ADNV. 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 due to a change in its investment policy. See Note 12 (“Clearing Operations”) for additional information. Industry market data fees decreased primarily due to a decrease in U.S. tape plan revenue as a result of a 2% decline in market share on the U.S. Equities exchanges.
Current wording
Cash and spot markets revenue increased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to increases in regulatory fees and transaction and clearing fees. Regulatory fees increased primarily due to a 248% 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 March 31, 2024 to an average rate of $27.80 per million dollars of covered sales for the three months ended March 31, 2025. Transaction and clearing fees increased primarily due to an 11% increase in total touched shares on Cboe U.S. equities exchanges and a 39% increase in matched ADNV on Cboe European equities exchanges.
Previous wording
Data and access solutions revenue increased for the three months ended September 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 logical and physical port fees in the North American Equities, Options, and Europe and Asia Pacific segments, driven by increased customer demand, led by the new North American Equities' dedicated cores product. Proprietary market data fees increased primarily due to increases in proprietary market data fees in the Options and Europe and Asia Pacific segments.
Current wording
Data Vantage revenue increased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to increases in access and capacity fees and proprietary market data fees. Access and capacity fees increased primarily due to increased logical port fees in the North American Equities, Options, and Europe and Asia Pacific segments, driven by increased customer demand. 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 increased for the three months ended September 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 13% increase in index options ADV, coupled with a 19% increase in Futures ADV, partially offset by a 2% decrease in multi-listed options ADV. Regulatory fees increased primarily due to a 248% 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 September 30, 2023 to an average rate of $27.80 per million dollars of covered sales for the three months ended September 30, 2024.
Current wording
Derivatives markets revenue increased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to increases in transaction and clearing fees and regulatory fees. Transaction and clearing fees increased primarily due to a 25% increase in multi-listed options ADV and a 17% increase in index options ADV. Regulatory fees increased primarily due to a 248% 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 March 31, 2024 to an average rate of $27.80 per million dollars of covered sales for the three months ended March 31, 2025.
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 and nine months ended September 30, 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 months ended March 31, 2025 and 2024, respectively (in millions):
Previous wording
Total cost of revenues increased for the three months ended September 30, 2024 compared to the same period in 2023 primarily due to increased cash and spot markets and derivatives markets cost of revenues, as a result of an increase in the Section 31 fee rate, partially offset by a decrease in liquidity payments on the Cboe Options exchanges, as a result of decreases in multi-listed options market share and ADV.
Current wording
Total cost of revenues increased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to increased cash and spot markets and derivatives markets cost of revenues as a result of an increase in the Section 31 fee rate, coupled with an increase in liquidity payments on the Cboe options and Cboe U.S. equities exchanges as a result of volume increases in multi-listed options and U.S. equities.
Previous wording
The following summarizes changes in the disaggregated cost of revenues for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023 (in millions, except percentages):
Current wording
The following summarizes changes in the disaggregated cost of revenues for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 (in millions, except percentages):
Previous wording
Liquidity payments decreased for the three months ended September 30, 2024 compared to the same period in 2023 primarily due to a decrease in liquidity payments on the Cboe Options exchanges as a result of a 3% decline in market share and a 2% decrease in ADV for multi-listed options, partially offset by an increase in liquidity payments on U.S Equities exchanges as a result of pricing changes and a shift in volumes of certain market participants.
Current wording
Liquidity payments increased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to an increase in liquidity payments on the Cboe options exchanges as a result of a 25% increase in multi-listed options ADV, coupled with an increase on the Cboe U.S. equities exchanges as a result of an 11% increase in total touched shares.
Previous wording
Routing and clearing fees decreased for the three months ended September 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 nine months ended September 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 Cboe U.S Equities exchanges.
Current wording
Routing and clearing fees increased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to an increase in routed trades on the Cboe U.S. equities exchanges.
Previous wording
Section 31 fees increased for the three months ended September 30, 2024 compared to the same period in 2023 primarily due to a 248% 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 September 30, 2023 to an average rate of $27.80 per million dollars of covered sales for the three months ended September 30, 2024. Section 31 fees increased for the nine months ended September 30, 2024 compared to the same period in 2023 primarily due to a 57% increase in the Section 31 fee rate, from an average rate of $11.14 per million dollars of covered sales for the nine months ended September 30, 2023 to an average rate of $17.50 per million dollars of covered sales for the nine months ended September 30, 2024.
Current wording
Section 31 fees increased for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to a 248% 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 March 31, 2024 to an average rate of $27.80 per million dollars of covered sales for the three months ended March 31, 2025.
Previous wording
Royalty fees and other cost of revenues increased for the three months ended September 30, 2024 compared to the same period in 2023 primarily due to an increase in trading volumes of licensed products in the Options segment, coupled with an increase in operating interest expense attributable to Cboe Clear Europe as a result of the changing interest rate environment and a change in its investment policy. 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 months ended March 31, 2025 compared to the same period in 2024 primarily due to an increase in trading volumes of licensed products in the Options segment, partially offset by a decrease in operating interest expense attributable to Cboe Clear Europe as a result of the changing interest rate environment.
Showing the first 40 of 82 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
The following summarizes changes in certain operational and financial metrics for the three months ended March 31, 2025, compared to the three months ended March 31, 2024:
Current report — wording carried from elsewhere
OCC acts as a central counterparty on all transactions in listed equity options in our Options segment, and as such, guarantees clearance and settlement of all of our options transactions. We believe that any potential requirement for us to make payments under these guarantees is remote and accordingly, have not recorded any liability in the condensed consolidated financial statements for these guarantees. Similarly, with respect to trades in U.S. listed equity options and futures occurring on Cboe Options, C2, BZX, EDGX, and CFE, we deliver matched trades of our customers to the OCC, which acts as a central counterparty on all transactions occurring on these exchanges and, as such, guarantees clearance and settlement of all of those matched options and futures trades. With respect to U.S. government securities transactions executed on Cboe Fixed Income, we use Mirae Asset Securities (USA) Inc. to deliver matched trades to the Fixed Income Clearing Corporation (FICC) Government Securities Division (GSD), which acts as a central counterparty on all transactions occurring on Cboe Fixed Income and, as such, guarantees clearance and settlement of all of those matched trades.
Current report — wording carried from elsewhere
With respect to Canadian equities, we deliver matched trades of our customers to The Canadian Depository for Securities, which acts as a central counterparty on all transactions occurring on Cboe Canada and, as such, guarantees clearance and settlement of all of our matched Canadian equities trades. With respect to trades in options and futures occurring on Cboe Europe Derivatives, we deliver matched trades of our customers to Cboe Clear Europe, which acts as a central counterparty on all transactions occurring on Cboe Europe Derivatives and, as such, guarantees clearance and settlement of all of those matched options and futures trades. With respect to Australian equities and derivatives, we deliver matched trades of our customers to ASX Clear Pty Ltd and ASX Settlement Pty Ltd. ASX Clear Pty Ltd acts as a central counterparty on all transactions occurring on Cboe Australia and, as such, guarantees clearance and settlement on all of our matched trades in Australia. With respect to Japanese equities, we deliver matched trades of our customers to the Japanese Securities Clearing Corporation, which acts as a central counterparty on all transactions occurring on Cboe Japan and, as such, guarantees clearance and settlement on all of our matched trades in Japan.
Current report — wording carried from elsewhere
With respect to trades in digital asset futures occurring on Cboe Digital Exchange, we deliver matched trades of our customers to Cboe Clear U.S., which acts as a central counterparty on all transactions occurring on Cboe Digital Exchange and, as such, guarantees clearance and settlement of all of those matched futures trades.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
The following is a reconciliation of net income allocated to common stockholders to EBITDA and adjusted EBITDA (in millions) for the nine months ended September 30, 2024 and 2023, respectively:
Previous report — wording carried elsewhere
North American Equities, and Europe and Asia Pacific segments. 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, driven by increased customer demand. Proprietary market data fees increased primarily due to increases in proprietary market data fees in the Options and Europe and Asia Pacific segments.