Cboe’s Global FX Net Revenue Climbs 20% to $16.6M in Q2 2022

The Chicago Board of Options Exchange (Cboe) Global Markets, operator of various options, equities, futures and forex marketplaces, saw a 20% growth in its global forex net revenue in the second quarter of 2022.

The revenue for last quarter came in at $16.6 million, Cboe disclosed in a news release published on Friday.

The release details the company's 2022 second quarter financial results.

According to Cboe, this growth is the result of “higher net transaction and clearing fees.”

However, this net revenue is an approximate 3% drop in revenue from the $17.1 million generated during the first quarter of this year.

Additionally, Cboe said the average daily notional value of forex trading on Cboe FX, its institutional forex trading marketplace, peaked at $39.6 billion for the quarter.

This figure represents a 22% jump from the platform’s posting in the second quarter of 2021.

Furthermore, the net capture per one million dollars of forex traded on Cboe FX during the quarter was $2.71, Cboe said.

This is a flat performance as the net capture per one million dollars is the same figure generated in the same period last year.

Based on a broad comparison of the forex market, the marketplace infrastructure provider said Cboe FX commanded 17% of the market share.

This is higher than the 16.3% market share the trading platform yielded during Q2 2021.

Furthermore, the figure is only a marginal drop from Cboe FX's Q1 2022 performance.

During the first quarter of this year, the company said Cboe FX controlled 17.3% of the market share.

Broader Market Results

In Q2 2022, Cboe Global Markets generated net revenue of $424 million, which is 21% higher than Q1 2021’s posting.

However, this net revenue only surpasses the company’s first quarter’s posting by 1.4% as it generated $418.1 million during that period.

Furthermore, while Cboe's adjusted diluted earnings per share (EPS) increased by 21% to $1.67 during the second quarter of 2022, its diluted EPS collapsed by 278% to $1.74.

The multi-asset market operator said this is “primarily due to the impairment of goodwill recognized in the digital reporting unit.”

‘Exceptional First Half of 2022'

Commenting on the financials, Edward Tilly, Cboe Global Markets’ Chairman and CEO, praised the company’s second-quarter result.

“Cboe delivered strong second-quarter results to close out an exceptional first half of 2022. Activity across our ecosystem, cash, data and derivatives [were] robust,” Tilly said.

The company’s Executive Vice President, CFO and Treasurer, Brian Schell, praised the performance, adding that Cboe is adjusting its 2022 total organic net revenue growth expectations between 9 and 11% growth rate.

“In the second quarter, Cboe produced record-setting revenue results as overall net revenues grew 21% year-over-year,” Schell said.

He added, “The benefits of the Cboe flywheel were apparent given the strong year-over-year growth from each category during the quarter, with net revenues from derivatives markets growing 30%, data and access solutions up 20%, and cash and spot markets growing 7%.”