The net revenue from foreign
exchange trading activities on Cboe Global Markets’ platforms increased by 8%
year-over-year during first quarter 2023, the American exchange operator
disclosed on Friday in its latest financial performance report. The increase
came primarily as a result of higher net transaction fees, Cboe said.Cboe FX Hits
Multiple Volume Records in Q1In the report, Cboe noted that the average
daily notional value (ADNV) of trades made on Cboe FX’s platform during the
period also rose by 7% to $45 billion compared to first quarter of 2022. ADNV
explains the average of the total value of trades executed on a daily basis
during the quarter.The rise in revenue came as Cboe
FX, the firm’s institutional venue for spot forex trading, achieved multiple volume records during the quarter, including spot FX quarterly
average daily volume (ADV) of $43.9 billion. The ADV gained 7.2% over daily
performance from Q1 2022.In addition, Cboe FX ended March
2023 as its second-best best month with forex trading volume hitting $1.1 trillion at
the time. The volume only trails behind the record $1.2 trillion the trading venue generated in March 2020 when
volatility peaked to record high as a result of the COVID-19
pandemic.Quarterly Record for Cboe FXMeanwhile, in the latest report,
Cboe Global Markets noted that the market share of Cboe FX increased to 19%
during the quarter, beating the previous record of 17.3% from Q1 2022. This sets “a
quarterly record for Cboe FX,” the Chicago-headquartered firm said, adding
that “the record was driven by increased client adoption of our diverse set of
FX order types and trading protocols.” Cboe Reports Mixed Performance from Other Business LinesContrary to the single-digit growth in net revenue from its
global FX activities, Cboe’s net revenue from all its business lines jumped to a quarterly record of $471.4 million, increasing 13% from the
prior-year period. The American exchange operator attributed the growth to
increases in its net revenue from its derivatives markets and data and access
solutions businesses. The growth came despite decreases in the firm’s net
revenue from its cash and spot markets during the period. Furthermore, on a business-by-business basis,
Cboe recorded mix performance in terms of revenue from its options, equities
and futures business segments. While the firm’s net revenue from options jumped by 28%
to $61.5 million versus Q1 2022, its North American equities business returned
a flat net revenue compared to same period. In fact, the firm
said its net revenue from its equities business in Europe and Asia Pacific went
down by 14% “reflecting slower industry volumes and continued currency
headwinds.”Additionally, Cboe’s futures net
revenue decreased by $0.1 million to $31.1 million versus first quarter of last
year. This was “due to a decline in net transaction and clearing fees, largely
offset by an increase in access and capacity fees,” the firm said.
This article was written by Solomon Oladipupo at www.financemagnates.com.
