Cboe Global Markets Reports Trading Volume for December and Full Year 2020

CHICAGO, Jan. 6, 2021 /PRNewswire/ — Cboe Global Markets, Inc. (Cboe: CBOE), a market operator and global trading solutions provider,…

CHICAGO, Jan. 6, 2021 /PRNewswire/ — Cboe Global Markets, Inc. (Cboe: CBOE), a market operator and global trading solutions provider, today reported December monthly and full-year 2020 trading volume, and provided selected revenue per contract (RPC) guidance for the fourth quarter of 2020.

The data sheet «Cboe Global Markets Monthly Volume & RPC/Net Revenue Capture Report» contains an overview of certain December and full-year trading statistics and market share by business segment, volume in select index products, and RPC, which is reported on a one-month lag, across business lines.   

Monthly Trading Volume

Full Year


December

December

%

November

%



%

2020

2019

Chg

2020

Chg

2020

2019

Chg

OPTIONS VOLUME (contracts, thousands)

Full Year

Trading Days

22

21


20


253

252


Total Volume 

234,872

151,227

55.3%

217,088

8.2%

2,563,360

1,849,373

38.6%

Total ADV 

10,676

7,201

48.3%

10,854

-1.6%

10,132

7,339

38.1%

FUTURES (contracts, thousands)

Full Year

Trading Days

22

21


20


253

252


Total Volume

3,365

4,760

-29.3%

3,503

-3.9%

50,748

62,756

-19.1%

Total ADV 

153

227

-32.5%

175

-12.7%

201

249

-19.5%

U.S EQUITIES MATCHED VOLUME (shares, millions)

Full Year

Trading Days

22

21


20


253

252


Total Volume

34,841

22,567

54.4%

34,495

1.0%

436,252

289,253

50.8%

Total ADV

1,584

1,075

47.4%

1,725

-8.2%

1,724

1,148

50.2%

CANADIAN EQUITIES MATCHED VOLUME (shares, thousands)*

Full Year

Trading Days

21

N/A


21


104

N/A


Total Volume

1,054,171

 N/A


999,209

5.5%

4,485,445

 N/A


Total ADV

50,199

 N/A


47,581

5.5%

43,129

 N/A


EUROPEAN EQUITIES (€ millions)

Full Year

Trading Days

22

20


21


258

256


Total Notional Value

€ 127,125

€ 115,490

10.1%

€ 172,358

-26.2%

€ 1,776,201

€ 1,962,721

-9.5%

Total ADNV

€ 5,778

€ 5,775

0.1%

€ 8,208

-29.6%

€ 6,884

€ 7,667

-10.2%

GLOBAL FX ($ millions)

Full Year

Trading Days

22

21


21


260

259


Total Notional Value

$719,116

$628,110

14.5%

$789,053

-8.9%

$9,022,160

$8,367,126

7.8%

Total ADNV

$32,687

$29,910

9.3%

$37,574

-13.0%

$34,701

$32,306

7.4%

*Canadian Equities data reflects Cboe’s acquisition of MATCHNow effective on the first business day of the month, Tuesday, August 4, 2020.

ADV= average daily volume

ADNV= average daily notional value

December 2020 and Full Year Volume Highlights

Options

  • Cboe Global Markets’ four options exchanges each set new total annual volume records in 2020: Cboe Options with more than 1.3 billion contracts, Cboe C2 with nearly 230 million contracts, Cboe BZX with more than 687 million contracts and Cboe EDGX with more than 296 million contracts traded.
  • Total options ADV reached a new all-time high of 10.1 million contracts traded per day in 2020.
  • In December, ADV at each options exchange rose compared to a year ago: Cboe Options up 19 percent, Cboe C2 up 65 percent, Cboe BZX up 94 percent and Cboe EDGX up 126 percent.
  • ADV in S&P 500® Index (SPX) options was nearly 1.1 million contracts in December, up 2 percent from November. For the year, nearly 313 million SPX options contracts traded in total, with an ADV of 1.2 million contracts.
  • ADV in Cboe Volatility Index® (VIX®) options was more than 390,000 contracts in December. For the year, nearly 125 million VIX options contracts traded in total, with an ADV of more than 492,000 contracts.
  • Options on the MSCI® Emerging Markets (MXEF) Index set a new total volume record with nearly 329,000 contracts traded in 2020.
  • Options on the MSCI® EAFE® (MXEA) Index set a new total volume record with more than 167,000 contracts traded in 2020.
  • ADV in Russell 2000® Index (RUT) options was more than 38,000 contracts in December, up 10 percent from December 2019.

Futures

  • ADV in VIX futures was more than 139,000 contracts in December. For the year, more than 48 million VIX futures contracts traded in total, with an ADV of 192,000 contracts.
  • Total volume in Mini VIX (VXM) futures has surpassed 2 million contracts since launch on August 9.
  • On December 28, Cboe® iBoxx® iShares® $ High Yield Corporate Bond Index (IBHY) futures set a new daily volume record with 4,451 contracts traded, representing more than $648 million in notional value.
  • ADV in IBHY futures was more than 1,000 contracts during December, up more than 1,200 percent from December 2019, and up 54 percent from November.
  • ADV in Cboe® iBoxx® iShares® $ Investment Grade Corporate Bond Index (IBIG) futures during December was more than 250 contracts, up 15 percent from November.

U.S. Equities

  • Cboe Global Markets’ four U.S. equities exchanges (BZX, BYX, EDGX and EDGA) combined set a new ADV record with more than 1.7 billion shares traded per day in 2020.
  • Cboe EDGX Equities Exchange set a new all-time high with ADV of more than 705 million shares in 2020.
  • In December, U.S. equities ADV was up 47 percent and total volume was up 54 percent from a year ago.
  • In December, U.S. equities market share during continuous trading, excluding auctions, was 15.4 percent, ranking the second highest among U.S. exchanges.

European Equities

  • Cboe Europe Periodic Auctions set a record ADNV traded of €999 million in 2020, up 36 percent on the €736 million ADNV traded in 2019.
  • Cboe LIS, Cboe Europe’s block trading platform, reported record ADNV traded of €329 million in 2020, up 20 percent on the €274 million ADNV traded in 2019.

Fourth-Quarter 2020 RPC/Net Revenue Capture Guidance

Options

The company currently expects RPC for total options for the fourth quarter of 2020 to be 2 to 3 percent lower than the two-month average noted below, primarily reflecting the lower RPC expected for multi-listed options for December compared to the two-month average, as well as a higher percentage of volume from multi-listed options. The RPC for multi-listed options for the fourth quarter is expected to be 1 to 2 percent below the two-month average, reflecting higher volume-related rebates in December. The RPC for index options is expected to be in line with the two-month average noted below.

Futures

The RPC for futures in the fourth quarter of 2020 is expected to be in line with the two-month average noted below.

U.S. Equities

The revenue capture for U.S. Equities for the fourth quarter of 2020 is expected to be 15 to 17 percent above the two-month average noted below, primarily reflecting the impact of fee changes implemented during the quarter.

Canadian Equities

The revenue capture for Canadian Equities for the fourth quarter of 2020 is expected to be 4 to 5 percent below the two-month average noted below, primarily reflecting a shift in mix by customer type in December.

European Equities

The revenue capture for European Equities for the fourth quarter of 2020 is expected to be in line with the two-month average.

Global FX

The revenue capture for Global FX for the fourth quarter of 2020 is expected to be in line with the two-month average.

These expectations are estimated, preliminary and may change. There can be no assurance that our final RPC for the three months ended December 31, 2020, will not differ materially from these expectations.

The following represents average revenue per contract (RPC) or net capture based on a two-month average and a three-month rolling average, reported on a one-month lag. For Options and Futures, the average RPC represents total net transaction fees recognized for the period divided by total contracts traded during the period for options exchanges: BZX Options, Cboe Options, C2 Options and EDGX Options; futures include contracts traded on Cboe Futures Exchange (CFE). For U.S. Equities, «net capture per 100 touched shares» refers to transaction fees less liquidity payments and routing and clearing costs divided by the product of one-hundredth ADV of touched shares on BZX, BYX, EDGX and EDGA and the number of trading days for the period. For Canadian Equities, «net capture per 10,000 touched shares» refers to transaction fees divided by the product of one-ten thousandth ADV of shares for MATCHNow and the number of trading days for the period. For European Equities, «net capture per matched notional value» refers to transaction fees less liquidity payments in British pounds divided by the product of ADNV in British pounds of shares matched on Cboe Europe Equities and the number of trading days. For Global FX, «net capture per one million dollars traded» refers to transaction fees less liquidity payments, if any, divided by the product of one-thousandth of ADNV traded on the Cboe FX Markets and the number of trading days, divided by two, which represents the buyer and seller that are both charged on the transaction. Average transaction fees per contract can be affected by various factors, including fee rates, volume-based discounts and transaction mix by contract type and product type.

(In USD unless stated otherwise)

Avg

for Two-

Months

Ended

4Q20 Guidance

vs.

Two-month Avg

Avg for Three-Months Ended

Product:

Nov-20


Nov-20

Oct-20

Sep-20

Aug-20

Multi-Listed Options (per contract)

$0.070

1.0 to 2.0% below

$0.067

$0.063

$0.056

$0.052

Index Options

$0.806

In line

$0.820

$0.831

$0.842

$0.848

Total Options

$0.189

2.0 to 3.0% below

$0.188

$0.184

$0.173

$0.172

Futures (per contract)

$1.578

In line

$1.561

$1.467

$1.527

$1.602

U.S. Equities (per 100 touched shares)

$0.012

15.0 to 17.0% above

$0.012

$0.012

$0.017

$0.021

Canadian Equities (per 10,000 touched shares)

CAD 8.62

4.0 to 5.0% below

CAD 8.49

CAD 8.22

CAD 8.20

CAD 8.20

European Equities (per matched notional value)

0.258

In line

0.254

0.250

0.245

0.238

Global FX (per one million dollars traded)

$2.62

In line

$2.63

$2.70

$2.70

$2.72

About Cboe Global Markets, Inc.

Cboe Global Markets (Cboe: CBOE) provides cutting-edge trading and investment solutions to market participants around the world. The company is committed to defining markets through product innovation, leading edge technology and seamless trading solutions.

The company offers trading across a diverse range of products in multiple asset classes and geographies, including options, futures, U.S., Canadian and European equities, exchange-traded products (ETPs), global foreign exchange (FX) and volatility products based on the Cboe Volatility Index (VIX Index), recognized as the world’s premier gauge of U.S. equity market volatility.

Cboe’s subsidiaries include the largest options exchange and the third largest stock exchange operator in the U.S. In addition, the company operates one of the largest stock exchanges by value traded in Europe, and owns EuroCCP, a leading pan-European equities clearing house. Cboe also is a leading market globally for ETP listings and trading.    

The company is headquartered in Chicago with a network of domestic and global offices across the Americas, Europe and Asia, including main hubs in New York, London, Kansas City and Amsterdam. For more information, visit www.cboe.com.  

Media Contacts


Analyst Contact

Angela Tu

Tim Cave


Debbie Koopman

+1-646-856-8734

+44 (0) 7593-506-719


+1-312-786-7136

atu@cboe.com

tcave@cboe.com


dkoopman@cboe.com

CBOE-V

BZX®, Cboe®, Cboe Global Markets®, Cboe Volatility Index®, CFE®, EDGX®, and VIX® are registered trademarks and Mini VIXSM and XSPSM are service marks of Cboe Exchange, Inc. or its affiliates. S&P 500® and SPX® are registered trademarks of Standard & Poor’s Financial Services, LLC and has been licensed for use by Cboe Exchange, Inc.  Any products that have the S&P Index or Indexes as their underlying interest are not sponsored, endorsed, sold or promoted by Standard & Poor’s or Cboe and neither Standard & Poor’s nor Cboe make any representations or recommendations concerning the advisability of investing in products that have S&P indexes as their underlying interests. All other trademarks and service marks are the property of their respective owners.

Cboe®, Cboe Global Markets®, Cboe Volatility Index®, CFE®, and VIX® are registered trademarks and Cboe Futures ExchangeSM is a service mark of Cboe Exchange, Inc. All other trademarks and service marks are the property of their respective owners.

Cboe Global Markets, Inc.  and  its  affiliates  do  not  recommend  or  make  any  representation  as  to  possible  benefits  from  any  securities, futures  or  investments,  or third-party products or services. Cboe Global Markets, Inc. is not affiliated with MSCI, Russell, iShares® or IHS Markit. Investors should undertake their own due diligence regarding their securities, futures and investment practices.  This press release speaks only as of this date. Cboe Global Markets, Inc. disclaims any duty to update the information herein.

Nothing in  this  announcement  should  be  considered  a solicitation to  buy or an offer  to  sell  any securities or futures  in any  jurisdiction  where  the offer  or  solicitation would  be  unlawful  under  the  laws  of  such  jurisdiction.  Nothing  contained  in  this  communication  constitutes  tax,  legal  or  investment  advice.  Investors must consult their tax adviser or legal counsel for advice and information concerning their particular situation.

Cboe Global Markets, Inc.  and  its  affiliates make  no  warranty,  expressed  or  implied,  including,  without  limitation,  any  warranties  as  of  merchantability,  fitness  for  a particular  purpose,  accuracy,  completeness  or  timeliness,  the  results to  be  obtained  by  recipients  of  the  products  and  services  described  herein, or as to the ability of the indices referenced in this press release to track the performance of their respective securities, generally, or the performance of of the indices referenced in this press release or any subset of their respective securities, and shall not in any way be liable for any inaccuracies, errors.  Cboe Global Markets, Inc. and  its  affiliates have not calculated, composed or determined the constituents or weightings of the securities that comprise the indices referenced in this press release and shall not in any way be liable for any inaccuracies, errors.

Futures trading is not suitable for all investors and involves the risk of loss. That risk of loss can be substantial and can exceed the amount of money deposited for a futures position. You should, therefore, carefully consider whether futures trading is suitable for you in light of your circumstances and financial resources. You should put at risk only funds that you can afford to lose without affecting your lifestyle. For additional information regarding futures trading risks, see the Risk Disclosure Statement set forth in Appendix A to CFTC Regulation 1.55(c) and the Risk Disclosure Statement for Security Futures Contracts.

The iBoxx® iShares® $ High Yield Corporate Bond Index and the iBoxx® iShares® $ Investment Grade Corporate Bond Index (the «Indexes») referenced herein are the property of Markit Indices Limited («Index Sponsor») and have been licensed for use in connection with Cboe® iBoxx® iShares® $ High Yield Corporate Bond Index Futures and Cboe® iBoxx® iShares® $ Investment Grade Corporate Bond Index Futures. Each party to a Cboe® iBoxx® iShares® $ High Yield Corporate Bond Index Futures or Cboe® iBoxx® iShares® $ Investment Grade Corporate Bond Index Futures transaction acknowledges and agrees that the transaction is not sponsored, endorsed or promoted by the Index Sponsor. The Index Sponsor makes no representation whatsoever, whether express or implied, and hereby expressly disclaims all warranties (including, without limitation, those of merchantability or fitness for a particular purpose or use), with respect to the Indexes or any data included therein or relating thereto, and in particular disclaims any warranty either as to the quality, accuracy and/or completeness of the Indexes or any data included therein, the results obtained from the use of the Indexes and/or the composition of the Indexes at any particular time on any particular date or otherwise and/or the creditworthiness of any entity, or the likelihood of the occurrence of a credit event or similar event (however defined) with respect to an obligation, in the Indexes at any particular time on any particular date or otherwise. The Index Sponsor shall not be liable (whether in negligence or otherwise) to the parties or any other person for any error in the Indexes, and the Index Sponsor is under no obligation to advise the parties or any person of any error therein.

The Index Sponsor makes no representation whatsoever, whether express or implied, as to the advisability of purchasing or selling Cboe® iBoxx® iShares® $ High Yield Corporate Bond Index Futures and Cboe® iBoxx® iShares® $ Investment Grade Corporate Bond Index Futures, the ability of the Indexes to track relevant markets’ performances, or otherwise relating to the Indexes or any transaction or product with respect thereto, or of assuming any risks in connection therewith. The Index Sponsor has no obligation to take the needs of any party into consideration in determining, composing or calculating the Indexes. No party purchasing or selling Cboe® iBoxx® iShares® $ High Yield Corporate Bond Index Futures or Cboe® iBoxx® iShares® $ Investment Grade Corporate Bond Index Futures, nor the Index Sponsor, shall have any liability to any party for any act or failure to act by the Index Sponsor in connection with the determination, adjustment, calculation or maintenance of the Indexes. iBoxx® is a service mark of IHS Markit Limited.

The iBoxx® iShares® $ High Yield Corporate Bond Index and the iBoxx® iShares® $ Investment Grade Corporate Bond Index (the «Indexes») and futures contracts on the Indexes («Contracts») are not sponsored by, or sold by BlackRock, Inc. or any of its affiliates (collectively, » BlackRock»). BlackRock makes no representation or warranty, express or implied to any person regarding the advisability of investing in securities, generally, or in the Contracts in particular. Nor does BlackRock make any representation or warranty as to the ability of the Index to track the performance of the fixed income securities market, generally, or the performance of HYG, LQD or any subset of fixed income securities.

BlackRock has not calculated, composed or determined the constituents or weightings of the fixed income securities that comprise the Indexes («Underlying Data»). BlackRock is not responsible for and has not participated in the determination of the prices and amounts of the Contracts, or the timing of the issuance or sale of such Contracts or in the determination or calculation of the equation by which the Contracts are to be converted into cash (if applicable). BlackRock has no obligation or liability in connection with the administration or trading of the Contracts. BlackRock does not guarantee the accuracy or the completeness of the Underlying Data and any data included therein and BlackRock shall have no liability for any errors, omissions or interruptions related thereto.

BlackRock makes no warranty, express or implied, as to results to be obtained by Markit or its affiliates, the parties to the Contracts or any other person with respect to the use of the Underlying Data or any data included therein. BlackRock makes no express or implied warranties and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the Underlying Data or any data included therein. Without limiting any of the foregoing, in no event shall BlackRock have any liability for any special, punitive, direct, indirect or consequential damages (including lost profits) resulting from the use of the Underlying Data or any data included therein, even if notified of the possibility of such damages.

iShares® is a registered trademark of BlackRock Fund Advisors and its affiliates.

Cautionary Statements Regarding Forward-Looking Information

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. You can identify these statements by forward-looking words such as «may,» «might,» «should,» «expect,» «plan,» «anticipate,» «believe,» «estimate,» «predict,» «potential» or «continue,» and the negative of these terms and other comparable terminology. All statements that reflect our expectations, assumptions or projections about the future other than statements of historical fact are forward-looking statements. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements.

We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible to predict all risks and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

Some factors that could cause actual results to differ include: the impact of the novel coronavirus («COVID-19») pandemic, including changes to trading behavior broadly in the market as well as due to the temporary suspension of open outcry trading in response to COVID-19; the loss of our right to exclusively list and trade certain index options and futures products; economic, political and market conditions; compliance with legal and regulatory obligations; price competition and consolidation in our industry; decreases in trading or clearing volumes, market data fees or a shift in the mix of products traded on our exchanges; legislative or regulatory changes; our ability to protect our systems and communication networks from security risks, cybersecurity risks, insider threats and unauthorized disclosure of confidential information; increasing competition by foreign and domestic entities; our dependence on and exposure to risk from third parties; fluctuations to currency exchange rates; our index providers’ ability to maintain the quality and integrity of their indices and to perform under our agreements; our ability to operate our business without violating the intellectual property rights of others and the costs associated with protecting our intellectual property rights; our ability to attract and retain skilled management and other personnel; our ability to accommodate trading and clearing volume and transaction traffic, including significant increases, without failure or degradation of performance of our systems; misconduct by those who use our markets or our products or for whom we clear transactions; challenges to our use of open source software code; our ability to meet our compliance obligations, including managing potential conflicts between our regulatory responsibilities and our for-profit status; damage to our reputation; the ability of our compliance and risk management methods to effectively monitor and manage our risks; our ability to manage our growth and strategic acquisitions or alliances effectively; restrictions imposed by our debt obligations and our ability to make payments on or refinance our debt obligations; our ability to maintain an investment grade credit rating; impairment of our goodwill, long-lived assets, investments or intangible assets; and the accuracy of our estimates and expectations. More detailed information about factors that may affect our actual results to differ may be found in our filings with the SEC, including in our Annual Report on Form 10-K for the year ended December 31, 2019 and other filings made from time to time with the SEC.

We do not undertake, and we expressly disclaim, any duty to update any forward-looking statement whether as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.

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SOURCE Cboe Global Markets, Inc.