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CBOE Holdings (CBOE) March Volume Rises, Q1 RPC to Decline
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CBOE Holdings, Inc.’s (CBOE - Free Report) recently announced that the average daily volume (ADV) for March has improved 11.8% year over year to 8.5 million contracts. The month of March had 23 trading days.
Total contracts for Mar 2017 was 165.6 million, up 26.8% year over year. Of this, options contracts increased 25.8% to 159.4 million, while futures contracts surged 56.5% to 6.2 million. Of the average daily volume, Options ADV was 6.9 million and Futures ADV was 0.3 million.
CBOE Holdings have been witnessing improvement in trading volumes. This has largely supported increasing transaction fees (accounted for 72% of total operating revenue in 2016) and in turn, revenue growth. We believe that the company will be able to retain its revenue momentum in the coming quarters, backed by its strong market position and global reach as well as a robust portfolio of proprietary products.
Shares of CBOE Holdings outperformed the Zacks categorized Securities Exchanges industry, year to date. While Intercontinental Exchange’s shares gained 8.72%, the Securities Exchanges industry registered an increase of 5.17%. We expect the company’s diversified product portfolio and expansion moves to fuel growth as well as drive shares higher.
CBOE Holdings now expects revenue per contract (RPC) for first-quarter 2017 to be 8–10% lower than the figure reported for the two months ended Feb 2016. The reduction is attributable to higher volume discounts in March. While Options average revenue per contract was 33 cents, for Futures the same was $1.839.
Concurrently, CBOE Holdings reported first-quarter 2017 ADV for Options of 6.9 million contracts, up 8.7% year over year. Futures ADV inched up 17.9% to 0.3 million contracts. ADV of U.S Equities matched were 1.3 billion shares in the first quarter, down 27% from the year-ago quarter. While European Equities matched declined 22.5% year over year to €9.8 billion, Global FX Matched declined 2.2% to $28.8 billion.
Recently, securities exchanges CME Group Inc. (CME - Free Report) , Intercontinental Exchange, Inc. (ICE - Free Report) and MarketAxess Holdings Ltd. (MKTX - Free Report) also reported their respective March volumes. While CME Group’s average daily volume increased 18% to 16.9 million contracts per day, Intercontinental Exchange’s average daily volume climbed 30% to 6.7 million contracts. MarketAxess recorded a 32% increase in volumes, on a sequential basis, to $155.2 billion.
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CBOE Holdings (CBOE) March Volume Rises, Q1 RPC to Decline
CBOE Holdings, Inc.’s (CBOE - Free Report) recently announced that the average daily volume (ADV) for March has improved 11.8% year over year to 8.5 million contracts. The month of March had 23 trading days.
Total contracts for Mar 2017 was 165.6 million, up 26.8% year over year. Of this, options contracts increased 25.8% to 159.4 million, while futures contracts surged 56.5% to 6.2 million. Of the average daily volume, Options ADV was 6.9 million and Futures ADV was 0.3 million.
CBOE Holdings have been witnessing improvement in trading volumes. This has largely supported increasing transaction fees (accounted for 72% of total operating revenue in 2016) and in turn, revenue growth. We believe that the company will be able to retain its revenue momentum in the coming quarters, backed by its strong market position and global reach as well as a robust portfolio of proprietary products.
Shares of CBOE Holdings outperformed the Zacks categorized Securities Exchanges industry, year to date. While Intercontinental Exchange’s shares gained 8.72%, the Securities Exchanges industry registered an increase of 5.17%. We expect the company’s diversified product portfolio and expansion moves to fuel growth as well as drive shares higher.
CBOE Holdings now expects revenue per contract (RPC) for first-quarter 2017 to be 8–10% lower than the figure reported for the two months ended Feb 2016. The reduction is attributable to higher volume discounts in March. While Options average revenue per contract was 33 cents, for Futures the same was $1.839.
Concurrently, CBOE Holdings reported first-quarter 2017 ADV for Options of 6.9 million contracts, up 8.7% year over year. Futures ADV inched up 17.9% to 0.3 million contracts. ADV of U.S Equities matched were 1.3 billion shares in the first quarter, down 27% from the year-ago quarter. While European Equities matched declined 22.5% year over year to €9.8 billion, Global FX Matched declined 2.2% to $28.8 billion.
Recently, securities exchanges CME Group Inc. (CME - Free Report) , Intercontinental Exchange, Inc. (ICE - Free Report) and MarketAxess Holdings Ltd. (MKTX - Free Report) also reported their respective March volumes. While CME Group’s average daily volume increased 18% to 16.9 million contracts per day, Intercontinental Exchange’s average daily volume climbed 30% to 6.7 million contracts. MarketAxess recorded a 32% increase in volumes, on a sequential basis, to $155.2 billion.
Zacks Rank
CBOE Holdings carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>