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Cboe Global May ADV Soft, Global FX Matched Solid, Shares Up

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Cboe Global Markets, Inc. (CBOE - Free Report) reported average daily volume (ADV) of nearly 7 million for May 2018. Though ADV declined 5.3% year over year, shares of the company gained nearly 3.6% in the last couple of trading sessions.

Total contracts for the month were 152.9 million, slipping nearly 5.3% year over year. Of this, options contracts declined 4.7% year over year to 147.6 million while futures contracts fell 4.7% to 5.4 million from the year-ago tally. While Options ADV was 6.7 million, Futures’ was 0.2 million.

Subsequently, ADV of the U.S. Equities Matched came in at 1.3 million shares last month, down 2.6% year over year whereas the European Equities Matched contracted 2.9% year over year to €10.5 billion. The Global FX Matched improved 45.3% to nearly $40.9 billion.

Though the May volumes were down compared with the year-ago level, the company has witnessed a year-to-date 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 to 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.

Shares of Cboe Global Markets have lost 17.4% year to date, underperforming the industry’s increase of 10.6%. Nonetheless, we expect market volatility lending momentum to trading volumes and benefits derived from Bats Global acquisition to help the stock rebound.


Cboe Global 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 their respective May volumes. While CME Group’s ADV of 20.1 million contracts per day improved 22% year over year, MarketAxess posted a trading volume of $141.2 billion. Plus, Intercontinental Exchange’s contracts per day averaged at 6.5 million, up 18.6% year over year.

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