Cboe quarterly profit surpasses expectations as trading activity surges

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The company’s proprietary products, such as the options linked to the VIX volatility index and the S&P 500, saw heavy demand as investors wary of an economic downturn and a potential recession hedged against market gyrations.

The higher trading activity over the period pushed up transaction and clearing fees by 21.4% to $317.2 million for the three months ended Dec. 31.

The Chicago-based company, which provides trading platforms for equities, foreign exchange and derivative products across markets in North America, Europe and the Asia-Pacific region, saw a 35% increase in revenue from its major options segment, to $273.2 million in the quarter.

On an adjusted basis, net income rose to $1.80 per share in the fourth quarter, above Wall Street estimates of $1.76 per share, according to Refinitiv data.