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Cboe Global's (CBOE) November Volumes Weak, Decline Y/Y

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Cboe Global Markets, Inc. CBOE reported average daily volume (ADV) for November 2019. Total ADV of nearly 7.2 million contracts decreased 6.2% year over year. The same declined 2.5% from October 2019.

Total contracts for November were 149.2 million, having decreased 11.1% year over year. Of this, options contracts decreased 10.7% to 144.9 million while futures contracts plunged 23.2% to 4.4 million. Options ADV was 7.2 million and Futures ADV was 0.2 million.

Subsequently, total volumes of the U.S. Equities Matched came in at 22.8 billion shares, down 19.4% year over year. Moreover, European Equities Matched deteriorated 42.9% year over year to €129.6 billion whereas Global FX Matched decreased 22% to nearly $598.3 billion.

The company’s October volumes also had also declined year over year due to tough comparisons.

Nevertheless, the company’s third quarter witnessed higher trading volume in its suite of proprietary products year over year.

This Zacks Rank #3 (Hold) options exchange in the United States has a strong market position and a global reach with strength in its proprietary products, primarily SPX options, VIX options and VIX futures. This year marked a huge transition with effortless migration of Cboe Futures Exchange to the Bats platform in February. This should help the company retain the solid revenue growth momentum.

Shares of CBOE Global Markets have outperformed the industry year to date. The stock has gained 22.9% compared with the industry’s rally of 20.9%.

Recently, another security exchange Intercontinental Exchange Incorporation ICE also reported its trading volume for November. Intercontinental Exchange’s Futures and Options Open Interest were up 3% year over year and 18% from year-end 2018, respectively.

Stocks to Consider

Some better-ranked stocks from the same space are Global Payments Incorporation GPN, and Cardtronics PLC , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Global Payments provides payment technology and software solutions for card, electronic, check, and digital-based payments. The company beat the Zacks Consensus Estimate in the trailing four quarters, the average being 2.42%.

Cardtronics provides automated consumer financial services through its network of automated teller machines and multi-function financial services kiosks. Its average four-quarter positive surprise is 28.80%.

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