The net revenue from foreign exchange trading activities on Cboe Global Markets’ platforms increased 8% year-over-year during the first quarter of 2023, the American exchange operator disclosed on Friday in its latest financial performance report. The increase came primarily as a result of higher net transaction fees, Cboe said.

Cboe FX Hits Multiple Volume Records in Q1

In the report, Cboe noted that the average daily notional value (ADNV) of trades made on Cboe FX’s platform during the period rose 7% to $45 billion compared to the first quarter of 2022. ADNV explains the average of the total value of trades executed on a daily basis during the quarter.

The rise in revenue came as Cboe FX, the firm’s institutional venue for spot forex trading, achieved multiple volume records during the quarter, including spot FX quarterly average daily volume (ADV) of $43.9 billion. The ADV gained 7.2% over daily performance from Q1 2022.

In addition, Cboe FX ended March 2023 as its second-best best month with forex trading volume hitting $1.1 trillion at the time. The volume only trails behind a record $1.2 trillion that the trading venue generated in March 2020 when volatility peaked at a record high as a result of the COVID-19 pandemic.

Quarterly Record for Cboe FX

Meanwhile, in the latest report, Cboe Global Markets noted that the market share of Cboe FX increased to 19% during the quarter, beating the previous record of 17.3% from Q1 2022. This sets “a quarterly record for Cboe FX,” the Chicago-headquartered firm said, adding that “the record was driven by increased client adoption of our diverse set of FX order types and trading protocols."

Cboe Reports Mixed Performance from Other Business Lines

Contrary to the single-digit growth in net revenue from its global FX activities, Cboe's net revenue from all its business lines jumped to a quarterly record of $471.4 million, increasing 13% from the prior-year period. The American exchange operator attributed the growth to increases in its net revenue from its derivatives markets and data and access solutions businesses. The growth came despite decreases in the firm’s net revenue from its cash and spot markets during the period.

Furthermore, on a business-by-business basis, Cboe recorded mixed performance in terms of revenue from its options, equities and futures business segments. While the firm’s net revenue from options jumped 28% to $61.5 million versus Q1 2022, its North American equities business returned a flat net revenue compared to the same period. In fact, the firm said its net revenue from its equities business in Europe and Asia Pacific went down 14% “reflecting slower industry volumes and continued currency headwinds.”

Additionally, Cboe’s futures net revenue decreased $0.1 million to $31.1 million versus the first quarter of last year. This was “due to a decline in net transaction and clearing fees, largely offset by an increase in access and capacity fees," the firm said.