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Cboe Global (CBOE) June ADV Rises, Global FX Matched Solid
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Cboe Global Markets, Inc. (CBOE - Free Report) reported average daily volume (ADV) of nearly 7.3 million for June 2018. The company witnessed an improvement in its June ADV, which inched up 1.6% year over year.
Total contracts for the month were 153.8 million, slipping 3% year over year. Of this, options contracts declined 2.3% year over year to 148.2 million while futures contracts fell 17.8% to 5.7 million from the year-ago tally. While Options ADV was 7.1 million, Futures’ was 0.3 million.
Subsequently, ADV of the U.S. Equities Matched came in at 1.3 million shares last month, down 7.2% year over year whereas the European Equities Matched increased 9.5% year over year to €10.9 billion. The Global FX Matched improved 35.4% to nearly $37.8 billion.
Though the June volumes were down compared with the year-ago level, the company witnessed a year-over-year ADV increasing year over year. Rise in trading volumes should consistently drive transaction fees (accounting for 70% of total operating revenues in 2017). As a result, the company has kept the revenue growth momentum up for the past several years.
We believe, the company will retain this positive trend in the coming quarters, backed by a strong market position, global reach, prudent acquisitions and a robust portfolio of proprietary products.
With respect to revenue per contract (RPC), the company estimates average RPC for Options for second-quarter 2018 to be in line with 24.2 cents reported for the two months ended May 31, 2018. For Futures, the company projects RPC between 3% and 4%, higher than $1.503 reported for the two months ended May 31, 2018. This estimate represents a shift in the mix of trading volume in June.
Shares of Cboe Global Markets have lost 17.4% year to date against the industry’s increase of 4.8%. Nonetheless, we expect market volatility lending momentum to trading volumes, a diversified product portfolio as well as benefits derived from Bats Global acquisition to help the stock turn around in the near term.
Recently, the securities exchanges namely, CME Group Inc. (CME - Free Report) , Intercontinental Exchange, Inc. (ICE - Free Report) and MarketAxess Holdings Ltd. (MKTX - Free Report) also reported June volumes, respectively. While CME Group’s ADV of 18.4 million contracts per day improved 12% year over year, MarketAxess posted a trading volume of $147.8 billion. Plus, Intercontinental Exchange’s contracts per day averaged at 6.3 million, down 11% year over year.
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Cboe Global (CBOE) June ADV Rises, Global FX Matched Solid
Cboe Global Markets, Inc. (CBOE - Free Report) reported average daily volume (ADV) of nearly 7.3 million for June 2018. The company witnessed an improvement in its June ADV, which inched up 1.6% year over year.
Total contracts for the month were 153.8 million, slipping 3% year over year. Of this, options contracts declined 2.3% year over year to 148.2 million while futures contracts fell 17.8% to 5.7 million from the year-ago tally. While Options ADV was 7.1 million, Futures’ was 0.3 million.
Subsequently, ADV of the U.S. Equities Matched came in at 1.3 million shares last month, down 7.2% year over year whereas the European Equities Matched increased 9.5% year over year to €10.9 billion. The Global FX Matched improved 35.4% to nearly $37.8 billion.
Though the June volumes were down compared with the year-ago level, the company witnessed a year-over-year ADV increasing year over year. Rise in trading volumes should consistently drive transaction fees (accounting for 70% of total operating revenues in 2017). As a result, the company has kept the revenue growth momentum up for the past several years.
We believe, the company will retain this positive trend in the coming quarters, backed by a strong market position, global reach, prudent acquisitions and a robust portfolio of proprietary products.
With respect to revenue per contract (RPC), the company estimates average RPC for Options for second-quarter 2018 to be in line with 24.2 cents reported for the two months ended May 31, 2018. For Futures, the company projects RPC between 3% and 4%, higher than $1.503 reported for the two months ended May 31, 2018. This estimate represents a shift in the mix of trading volume in June.
Shares of Cboe Global Markets have lost 17.4% year to date against the industry’s increase of 4.8%. Nonetheless, we expect market volatility lending momentum to trading volumes, a diversified product portfolio as well as benefits derived from Bats Global acquisition to help the stock turn around in the near term.
Cboe Global Markets carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recently, the securities exchanges namely, CME Group Inc. (CME - Free Report) , Intercontinental Exchange, Inc. (ICE - Free Report) and MarketAxess Holdings Ltd. (MKTX - Free Report) also reported June volumes, respectively. While CME Group’s ADV of 18.4 million contracts per day improved 12% year over year, MarketAxess posted a trading volume of $147.8 billion. Plus, Intercontinental Exchange’s contracts per day averaged at 6.3 million, down 11% year over year.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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