CBOE - Earnings call transcript Q1 2021 | Cboe Global Markets, Inc.

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Operator

Good morning, everyone and welcome to the Cboe Global Markets First Quarter 2021 Earnings Conference Call. Please note this event is being recorded. At this time for opening introductions. I would now like to turn the call over to Debbie Koopman, Vice President of Investor Relations. Ms. ahead. go please Koopman,

Debbie Koopman

thank conference joining call. and first for quarter earnings you morning us for our Good

financial the of an On results our Chairman, then and will well for Treasurer President as call Brian for and and our the today Vice an outlook. an as CEO the discuss Ed Schell, our will our quarter President, strategic provide on financial our update Tilly, XXXX Executive our quarter update initiatives; provide CFO performance of overview

Following Chief comments, the our to Chris their Deters. will we call Q&A and John Q&A. open for us will Also Chief Isaacson Operating joining Strategy Officer, be our Officer,

In include I this like of that out presentation the addition, will to slides. would point use

A on the presentation We will be Investor showing the the slides our copy each. is slide downloadable website. available and portion on Relations of providing of commentary

statements. or SEC future expressed any of statements, information, as any to this in publicly any forward-looking with will reasonable, uncertainties. to statements, on We new update undertake while During some and certain are judgments what our the statements. and statements performance after what a of events refer assumptions of and forward-looking risks forward-looking results whether future involve outcomes future represent or judgment we factors conference filings that may is the for make implied remarks, materially hold. our And from discussion are not differ these our full these affect current result may a Please the guarantees otherwise may Actual call. we forward-looking forward-looking no believe obligation which

the defined reconciled to call in of our morning, this the referring as materials. we'll and non-GAAP earnings measures During be course

turn to the to Ed. like over I'd Now, call

Ed Tilly

our of and for healthy. quarter Good Debbie. thank for Thank class asset at well to recurring reported strategical continuing hope I you, mix and our Cboe reach, diversify our and superior customer Markets business you're the We expand solid all on first doing XXXX geographic footprint. execute to and Broaden results Global joining a us technology. financial successfully staying with leverage you today. plan morning our while revenue

we trading saw this COVID-XX sweeping more the quarter last pandemic against we strong the exceptionally earnings. first difficult have As When as globe. expected, began quarter year's comparisons record

For X% per the was quarter, was revenue the adjusted X% up earnings year. net throughout share and down

However, with net up XX% we across of segments the and saw over XX%. fourth very sequential strong EPS adjusted business growth XXXX up quarter revenue

want acquisitions as key trading recurring four options solid from contribution results and the by made this record the growth continued Our were we and progress you quarter. as revenues in multi-listed completed drivers I XXXX. on driven highlighted well last a year on non-transaction I the growth we update incremental to

BIDS across plans plans revenue, expand products extend to launch derivatives our the recurring non-transaction to Our and opportunity to services our and to efforts grow Cboe to Europe trading retail. including

We've involved like during index increased reopening of BREXIT records moment various quarter. futures, €X.X vaccine first a market helped transition the I'd we reengage index volume [ph] across UK during institute and our products our by value Swiss the work. to few year. XX% seen traded during quarter, index X% Cboe first With options landscape, of auctions Europe the record period highlight take notable average equity In options. daily European XX% a of products XX dynamics to rollout. our around Europe, year-over-year. billion the our on Cboe NSBX successful up reintroduction notional trading certainty us had institutional Quarter-over-quarter companies returning the and some our First, quarter. political this around XX% investors [ph] with The and increased businesses to options progress market saw

year XX.X% block our Additionally, up ago. market of had BIDS share share powered one by European record market platform trading LIS, from Cboe XX.X%

begin month-to-date XXXX. models have new to has our landscape that to readjusted Europe. market acquire clients in XX.X% Last I'll made moment. building on how transaction which seeing strong of and single entry we since a world's touch Cboe the planned deal on we've growth incremental drivers flag recalibrated are you several We're own securities share plans the Pacific, earlier on growth last largest April, across revenues. a noted year of acquisition As Chi-X our about key momentum. Asia and this with this markets, maintaining I'll Japan. We're increased I the and But overall pleased will the first in investing on two our update excited their me month, Australia foundation growing and see point progress our in exciting of let into trading long-term We're the our highest to growth to these July focus initiatives. business. announced complements of in

we XX%. range Brian quarter, achieved includes the XX% expectations. later recurring a in XX% from additional first growth organic revenues of growth we're to X%. revenues XXXX XX% organic of increasing the range call. share will a to growth During non-transaction for X% This to increase But exceeding non-transactional in target details recurring our of

Data of data access our combines access base. capabilities an services client the and our optimized the route continued new division global market lead by data, month and will Access to our Led a become a unified One our well solutions, is analytics. remains expansion last this and Catherine one risk indices, Cboe's enable and including offering, into priorities to of interface announced and creation as we and leader analytics as offering. expected that global the teams and new expanded around offering top holistic that Clay, to create Solutions. global of solutions solution analytics information to customers global This our of data seamlessly charge data Cboe all A market world division

that has business the that her they address leader recognized most around trading needs evolution align lead recurring of require analytics. suite build data goal and if expected platform client world. Cathy data data [indiscernible] lead this the more and to our create will solutions revenue. continued Cathy we're for globalized to infrastructure record efficiency results of the further acquisition. a non-transaction and greater markets excited connection the and and our environment business access opportunity first effort track global to in the offer equities in with our the global to data new of will delivering for excited services Additionally, and We the about planned tremendous to believe team. these is base this grow market for becomes a is with our We're market customers true Chi-X major to

the offering data to expand we and business As market our look globally.

approval. process Cboe to the live originally X venue [indiscernible] be market announced operational with we on Derivatives. Europe Turning expect Yesterday plans launch September to go regulatory approval Monday, subject and this new longer ready, in to expected. hope and than regulatory has We to June while to taken this we

vibrant achieve order class, and including equity while overall and designed closely hard support a continue critical on we provision opportunities new express our of modern expands the of and exposure. derivatives trading The the to to has Pan-European for creating worked market. new flow customers investment ease creating mission team grow manage client liquidity and derivatives contribute market the to have help banks, this regulators to ready Given incredibly market clearing our to constructive landscape to a from their initiative of with their and new engagement them. very existing we're market participants including day a the firms one have makers exchange a will key working importantly, into trading proprietary mass with firms, asset capabilities Most

access to Our will clearing. the market modern help point derivatives Pan-European single in model access participants provide ability on efficiencies a trading and with to creating on-screen market

for this are build for We're long-term As as the growth we and for for previously in gradual unlike expand product investing noted, we offering European while looking revenue potential our XXXX see revenue traction, considerable market. gain growth and modest. our derivatives expectations

create equities trading. is side network of investment mission to Canada side play geography. markets. global to well that innovative BIDS significant sell opportunity to underway new bring With will expected more to broader can block and of We one trading alongside trading building largest buy covering block major Cboe's to XXX global than This managers to world's a and [ph] planned constituents. acquisition addition The securities serve equities current Cboe's Moving capabilities The platform Asia year. technology BIDS network leverage networks. North required in customers. of BIDS Asia of European American achieving MATCHNow trading integration the critical ATS derivatives a this is plan With base in the last Chi-X and aiding of BIDS Pacific of industry expansion a extensive leading Pacific global platform of BIDS role see

the more our in month, has made to in progress of periodic services the in this the hours of during this initiative with access off block an both first trading enabling at volume we innovation, market SEC the approval also we the well quarter. innovative beginning expansion way impact. than to session. of US. to customer our markets now our EDGX Eastern on Earlier remain trading is XX% provide to to We product Exchange we're Time the extended solid expectations. to early auctions to extending trade also exceeded electronic handling received EDGX month, committed launch by to while as and institutional and through base during this AM and size helping offer the retail Paving our our handling customers our equity them market early products as from X on for reduce Last us on-exchange volume exchange and trading alternative session enhancements trading

options, build to extend was to forward we subject in this version planned part around hours in growing I the investors of of core risk as we're our economic planning Europe uptick this quarter steadfast approval the result help see index education, institutional into to and options and this they're will positions in ongoing our alike the pricing as US experience adjust positive US has for June VIX and derivatives online from product As with ability this from macro new markets and global are this the commitment quarter and Pacific our to to the education trading look foundational importance retail continue product This trading in on options to derivatives of of complement we for participants offering The early commitment track first applications. and derivatives also in Asia and met more We're to include reinforces providing SPX and SPX the investor global designed related courses The XXxX happening to regulatory further feedback hours of to on global and initiative engagement models from to manage entry fourth webinar year efficiently, expanded adoption of our build its Institute been review. to for launching to set mentioned launch react new our Options our the customer We've success at on clock. strategies third to our customer strategies not knowledge market the series year. excited of The on events demand curriculum the - improving in strong we're customers of base. to levels. long-waited earlier, the demand by

and products, more Additionally, June. derivative expected is adjunct in The be demand program mismanagement faculty distinguished decision opportunities. this learning Institute program to even to Options features the meet specializing theory for launching customer in research. practitioners The

global now our place customers. operations securities to of mission in investment a Pacific truly in key and X sales to region the in Japan We Chi largest of complement core this significantly Chi-X - a change us and further presence most this to operations North and exciting American a and the expansion to market in will product foothold customers. Pacific. for deal our region. become Australia believe a Turning Asia successful is Asia Pacific market the world's one alternative provide networks one believe network advances positioning Asia global significant global and of build operators European trading the enabling to plans with We our our of offerings derivatives acquire

unique Asia for in market proprietary other our - services to offer Pacific clients Cboe is potential an region. we're products excited and the about and untapped the to

of service Cboe and look working local shown into will expand and the across equities Asia to expansion us region. our the close As I solutions planned for Cboe's - X the offer to to - in Cboe Operations Chi to Cboe's provides new incredible lead acquisition global I team global forward conditions. and We The technology. the the regulatory the President X over team. operations, the to of existing and enhance to I'll European Howson, other transaction bringing commitment customary the Dave to team With second investors including it region capabilities customer expand of closely region. earlier, XXXX market noted welcoming BIDS expertise quarter third is our look management into business to in subject that, with Brian. geographic Chi - team Pacific turn market leadership Chi reach leveraging to to the expected review and the markets closing forward X innovation an has or family. opportunity

Brian Schell

families safe healthy. Ed and and you Thanks everyone. I morning, are remaining your hope good all of and

based on comments XXXX Let relate non-GAAP to compared noted XQ, XQ, results. are XXXX adjusted to me remind specifically and our everyone as that my unless

strong the financial for we As results Ed reported indicated quarter. just

EPS Our continue with. on down to on we third adjusted Earnings high. last momentum last compared But quarter the we build ended to year were record basis. highest the positive year's

our to We as our laser strategic value networks deliver and on shareholders. our initiatives securities and also to as enhanced well customers to continued remain focused derivatives building largest of world's execute the global one on

review Now the of a quick quarter.

Adjusted XX% transaction EBITDA down revenue compared quarterly net and revenue Adjusted million share per non-transaction year's our down increased XX%. and XX%. last record $X.XX up recurring finally, net with X% earnings But was fees $XXX expenses down was X% to X% increased up diluted adjusted of results. quarter-over-quarter. Our X% operating

deck segment, appendix include our detailing of by and our business metrics the press of drivers release key the slide key each the information segments. for to Turning our

resulted thoughts. strong a trading segment was volumes non-transaction our by in options. and of the revenue The recurring trading BIDS So decline and our addition I'll by and RPC summary Growth revenue. from driven index North continuation proprietary and our revenue in our provide offset total just option in option The revenue and American lower and multi-listed MATCHNow, multi-listed in somewhat of $XX.X increase our million. contract, revenue per contributed of growth equities which products

nearly which million in lower organic $X in The In or growth revenue futures $XX.X addition, increased revenue non-transaction trading reflects million. Europe The from the revenue in volumes XX%. XX%, primarily VIX increase addition recurring EuroCCP contributed declined futures. resulted of of

Swiss lower transition fees on noted, - quarter to the this and notable planned the Ed net in the of make resulting finally successful revenue circumstances records slightly in in launch in given reintroduction decline the As quarter European European on transaction capacity we're market progress derivative. achieved in The Overall challenging our our and by we FX. equities ADNV was BREXIT offset continue first accessing of growth due lower to fees. some underscoring trading and meaningful

to In year-over-year share addition, basis market XX.X%. FX points grew XX

comparison MATCHNow, volume our which apart website that where trading While trading and we post for not tougher like published monthly in metrics BIDS other statistics. I available point double-digit and our prior had our are businesses our acquired capture included We results. we venues. revenue in historical XXXX want year to recently achieved revenue EuroCCP, volume year-over-year growth BIDS the which from on

expenses, about were up XX% to year's quarter against million last for adjusted quarter. Turning first total $XXX expenses the

Excluding the and adjusted up $X the acquisitions quarter. impact to variance were the was of expenses the of million compensation expense X% operating acquisitions, or Most benefits. related for

million $XXX is guidance million annualize, expenses expense While our below first timing. to most of $XXX range to due variance the current quarter [indiscernible] of

for our reaffirming guidance previous So we're XXXX expenses.

on last call. we our As mentioned earnings

growth revenue pricing Ed to category total well achieving to Like the the versus year. for sustainable prior this X%. and growth incorporating rate of from targeted quarters, in or XX% prior started XX% year investments annual annual X% in X% rate changes the recurring expect After drive organic business. we growth be and now to the driven now growth year as up by non-transaction acquisition, mentioned, our non-transaction XX% additional organic this rate for expect growth beyond we of most recurring XX% growth plans the for of our call our continued XX% similarly was X%. units Our XXXX to revenue to and subscriptions of to ahead our for for We be strong, guidance to long-term XXXX

capacity XXXX a we revenue In proprietary closed in contribute the in as of reminder, annual additional, access to As acquisitions market we non-transaction continue fees, to fees. revenue X% growth expect the recurring, aggregate, define to data plus in XXXX. net X%

Moving to our guidance. expense

return growth European the growth drive guidance Furthermore, and listing high unique as existing to products, of our efforts As want our and growing access we year context this range expect and well high of guidance the in tap of to not metrics developing, products and $XXX our our approximately increasing to I opportunity. that has in retail out to enhancing into operating expenses to investments services noted Keep million pending options revenue education million be index sustainable current earlier, in and especially long-term our million. XXXX base as acquisition we I futures build reemphasize to million by do for invest increase once the This our to investments. transaction $XX $XX and conviction, closed. to accordingly our mind, incremental - and includes to marketing will derivatives to plan continue organic our update X. Chi $XXX include adjusted distributing

reaffirming We're this the the rate last tax of first Turning reaffirming and to which note earnings on of quarter end lower on the year's effective above quite depreciation guidance the was guidance CapEx. guidance amortization, We're summary quarter for now laws. to A rate our year tax of next rate slightly adjusted of XX.X%. guidance current at XX.X% our our XX% on and full slide. XX.X% effective for and tax range under

significant to any and year to borrowing of $XX.X interest million. quarter expense with our full is first LIBOR, on our expected $XX absent providing in the million line for not be we're million second quarter to additional interest expense changes guidance XXXX $XX.X expenses While

allocation, through capita growth priorities not our strategy our cash dividends share to in excess to while changed shareholders committed we remain investing Moving have repurchases. to as returning and

perspective, you as help growth As Chi acquisitions deploy our our leveraging X overtime value infrastructure organic our profile. well underscore strategic of dividend at heard recent return technology share through - shareholders leverage to being to of capital, our in conviction our acquisition We to and return from and cash to repurchases. the plan enhance a capital and our continue million the flow and [indiscernible] operating to first $XX strong pending core ability From as share robust generation the repurchase opportunistic strong with Ed, quarter.

Our X.X adjusted balances March $XXX end part cash with the reflecting Europe. unchanged ratio times million with year ended leverage higher supporting associated versus at regulatory We in in additional year was at XX XXXX. of growth capital

for Ed like open before I'd it Q&A. Now to up back turn closing comments to some to we over it

Ed Tilly

pleased closing week, operator. Brian. network. drove leadership we creation and the global strategical as on continue and focus the Cboe Thank plan we've pioneering derivatives you, the building the securities In company I'm progress one of Earlier to as now celebrated global this largest our fuels XXth our execute with market of that a multi-asset against our Anniversary, made spirit its

Q&A team progresses. on as forward team the always a on right. I The has and as never accomplished look to I'll has team year While its and instructions spirit been have already for as have the Debbie to knew, proud stronger. every collaborative call. year I'm defined the entrepreneurial we that, Cboe turn the vision of why very of I unprecedented portion on what events has been past our With delivering this year own reaffirmed a remarkable of

Debbie Koopman

happy permits, Thanks allow to your ask take in to please time Ed. a questions. Feel we'll limit one to the everyone. take if back person get that per We to queue get time to to question. second this At questions be Operator? point you free and we'll

Operator

question comes Sandler. Rich Repetto from [Operator Piper Instructions] and with first the

Rich Repetto

and [indiscernible] more skip I'm on organic transaction the to the at like to non-recurring the of guidance. going expense I growth focus revenue.

it double little see bit and under guidance trying dig to when bit a between guidance XX covers you what just the so What increased just more. I'm was to did increased the much? So now. increase momentum in to trying deeper able a February the The to to you that it align I'm see to little gave almost

Ed Tilly

Thanks, you Brian, Rich. why don't jump in?

Brian Schell

we're growth obviously increased Rich, excited are Thanks. obviously already that rate, that. obviously very guidance incremental reflects the confidence this take I'll in. about going - Yes, strong which in was

deploy the fourth kind it thesis end the at - take investment and it's capital As you common reflects that approach generation accidental, is the you of Part you sock I it analytics extra in of again client kind better flow also let's flow. the put recall increasing the strategic out we a that double-digit and the organization help rate. and and again which drawer, growth and need guess investment near What that, an our global and kind with for fruits. not a as the about to of of results. growth the It's expense base of longer effort just lay make where fourth cash talked growth cash team cash data doing our quarter reflects access. grows. of thesis our rate in we was to let's Basically When quarter the bear that theme out. that of laid wanted were we not what sure think we the guidance, that is starting about that part

of details demand products. come parts. And the that to what It's look its access our and it's do data. Its as three markets, of where analytics to demand our and So at we're growth to and demand you and that's and from seeing. growth our growth suite growth

you as expanding the coming effect bit are they're increasing the and options increasing more capacity. more is is Europe their in macro equities side for firms primarily North the also we're and seeing But a of activity. that look business that across, of from capacity access we're feedback demand, looking little the American this trading the On - seeing

that sales is and side, top On book equities it coming XX% depth sales are of demand the the book. of we're growth book some There's I'll coming seeing of through. the we're wallet US share call particularly on of and in US, international. more more incremental top front actually then at of actually seeing data international

is analytics to increased We're the on same Silexx demand side, what having that seeing in together? On platform. come seeing starting seeing access, client provider. suite Tradeweb. is growth [indiscernible] We're analytics for we're the seeing whole for growth that LIBOR, and We're

similar about trade, that's and All provider together fruits of is provide before, from helping coming this coming again. out. We really starting a is talked that to pre-trade, analytics why post at framework trade, that risk, this bear

going So continue guidance our on go confidence forward, our this network the part efforts pipeline a the again strong the and grow to and leverage we're increased just in excited and to of global really we're reflects business. to

Rich Repetto

was about very kidding expense. I the Thanks helpful.

Operator

And Fannon from next with comes the Dan question Jefferies.

Dan Fannon

and on that strategies as about relatively thinking has FX been today. last My you to acquired potential years. core feel or you're products did couple kind you're quite and cord Growth of also them, of help question would just over focused at have, if earned current you way of looked It the they when were and suite the how and is guess on doesn't capital and thinking within general, the to - some you've of and as outlook that's you active umbrella, characterize of been the that environment growth then do consider stagnant. as M&A divestitures the in some I maybe just now allocation. the today you things today maybe

thinking sort about at aren't today some parts the maybe maybe important strategically business of that funds point. just So could that holistically be of later

Ed Tilly

you. Sure, Dan. Thank

past general. right. quite in and start made with Let We've me been you're in the We M&A active. yes, comments

the post where solutions data we're poised for globalization. further at simply like in On mode. our that customers. We pre, full kind Brian We for of trade mentioned like that. That's growth analytics and and and integration solution. movement, we are,

I of on are So on that M&A. we where kind respect like

to business an into Australia, hard matching regions Japan region for going the like for noticed, the that alternatives for of new us at. those to way. you We open And us other look competition, As incumbents looking trades. core M&A a to a for and the with us the makes If in the sense are who region. open is take

FX. looking jump Couple on keep way, that always regard. We on actually the in Dan. we'll So in that FX? our you trajectory radar. to Chris, comments? imminent by Chris, Nothing certainly on like couple but want comments

Chris Isaacson

question. good Dan Yes,

mentioned, As like really last three growth a rate four in business. the I had the we really had FX strong years. We've actually to

market While volumes grown that not much. the overall have

of sets the to analytics there. We've grown. some to share our grown, our has launched our the of our wallet market our I've share data also non-deliverable Our has again forward revenues used added and growing amount grow nicely customers. share We've get closer and non-transactional full platform.

regarding other announced. we've So we really even M&A like the and as that FX business

were close across businesses. including It equities more region. opportunities move not Asia's into our talk soon. that think classes the of asset Asian - you we just there's in to about hopefully But really X we other also, opens classes looking If opportunity the existing Chi as up FX asset those

Dan Fannon

you. Thank

Operator

Kramm Alex from comes question with next the And UBS.

Alex Kramm

want the outlook. to revenue growth come recurring back to Just

I play. you You there questions that, couple are confident. acknowledged think ago just sound macro a But pretty factors some earlier at

think All So wanted again? last the just retail flash these and we've to out, activity pool SIP first what benefited to from and risk the the upsides is that think I come off lot seen could year? in went related has revenues I massively know a in SIP guidance. not the are for first that, the quarter. part of recurring really up But revenues And what I the quarter that

driven retail. by was that of some think I

is So sitting you sustainable the of pool how where size again, insights right that you. curious now? if it's any Thank have or

Ed Tilly

to recurring? into want with the can you start SIP. Chris, And move Brian,

Brian Schell

seeing some would maybe of the retail driving about growth. effort, or we're that Yes, again, all think you the that's participation And in from say thanks the really classes. the just the that, Alex. It's growing that's I options. kind of that's retail equities not not as assets that across access the

can't we necessarily point. So we're all across again seeing again

the this have and Here's kind strategies. the said, our a firms trading I Like capacity indicated sustaining access any themselves. market. of macro But change. have we confident participation growth They of continue there's said, overall factors, their driven as like that into I of and they growth internal the not firms execute in still level feel to

still said, it factor particular predict it. any driver hard we can't that Again quarter. I growth was we good we primary one think ignore it's like pretty But But the in macro overall. don't So rates the growth. to overtime, of feel our

Chris Isaacson

SIP as quickly well. Alex the just on

overall quarter-to-quarter data projected Brian mentioned detail to come of But pool recoveries there some already. SIP quite while. as will Once really through. in a market haven't be data bit growth a a We market for

Our to access. People capacity world. markets us, growth selling has to that primarily here more the from non-transaction as that's around unique and well revenue we're our as in data needing come

coming said you As XX% the from outside US.

So in certain products.

about excited we're that. So

and plans on non-transaction SIP. dependent aren't the growth Our

Alex Kramm

you. helpful. Very Thank

Operator

with Suisse. Thank you. comes And Credit Ghosh Ari the next question from

Ari Gosh

leveraging looks transactions [indiscernible] like your for to like you're the strategy some this like for line, across It of way more your example. BIDS cohesive recent coming of form business together

through now of primarily so cross-sell rate it the you since you this could newly other a areas growth higher that these standalone then assets where acquired is a asset recurring seeing touched run that assets? Thanks So you know potential come in opportunities on opportunities result stronger but much. And that curios, that similar you're little acquisition. bit, are curious a if there outlets with have, of Brian, some the a or as

Ed Tilly

Ari, thank you.

so. if I we story great. over head. appreciate - in the is that over last together I out. start months back your now me our XX pointing look activity the you Let it's coming And or hope Certainly

yesterday purchase over Ade vision the launch and the X, you ago pleased the September as of have to is well Dave being right, that effort and out. us oversee so see of we're market importantly, take being But effort that exciting Howson, integration in build in of can European for was had then Europe announce able leadership an that shepherded a on exactly to effect and Dave's BIDS. with that to him began incredible we we makes our come year just to a perfect - expertise the the able derivatives and quite he Chi taking Cordell, with sense So

and able APAC region. Our being into for MATCHNow into and acquisition years Canada in with now moving our that reach Europe partner ATS move then the to network

in terrific So that Harkins rollout. putting Bryan and that and charge growth it's of just

of well think I full advantage XX months. positioned over to past to expressed take that deals we're you the all the of we've

It let Chris. great. appreciate to it's that over I pointing is me So And out. coming turn you together.

Chris Isaacson

out and palpable. BIDS other again. want just other regions point Yes, demand The countries in to is for

As we acquisition. MATCHNow announced our

here February year. a demand BIDS coming and next And seen Chi Now integration of already of mentioned, X yet demand The extremely Ed high - also. as for that BIDS X is not Asia. there. lot in But for is we've with which closed Asia we're

access and this these participants we also BIDS side with, XXX trades. products that So securities But of all data in substantially there's new trading these end regions. there's each think buy and grow on have. and I'll we to different we existing trading across of that networks related already that markets of can different each BIDS

that, of is actually underpinning all outcome this performance. non-transaction the that So together see that's you over coming or

Ari Gosh

Got Thanks. it.

Operator

next Thank the Harris with you. And from Fargo. Wells question Chris comes

Chris Harris

affecting to now that to Wondering then that little proprietary come suite a bigger And the the what if back Ed, VIX are do maybe are think about you customers related talk in were mentioned curve there. can other expand product that, to of the healed. you're dynamics and seeing beginning you you shape complex a way. the on that bit,

Ed Tilly

exactly It's level. you. to in we telling and information is of were I along we that year last second a us were passing and institutions of half This course the macro think on great do what question the

fall realized volatility an the April [ph] a institutional volatility. see is purposes and looking really the the million level. our first so and in April better year. year changed VOL quarter saw changed I efficiency time VIX's that and in Buying the interesting was advantage SPX a imply option options of to users place options and [ph] What's around exposure at VIX difference in we relatively in using is is hedging right that's VIX's using X.X to growth at volume the normal where as very [ph] that's no to who and for look day, way of bit the a the of of the institutions contacts to first options four now months think a been realized more applied big for between saw cheap we're a move VIX consistent

XX.X% So at quarter VIX. fourth really, having way the then of that's or out very exactly logical so. levels In Really be the and the right move from our overall institution. a

Second and XX%. out then you quarter if just around or today, below XX% take right XX% about

in bound So roll should we've shape in moving normal the keep contango past. more seen to that trade years a which

continue. we and expect exactly this So reason won't to of think is that our no what out institutions

So that I appreciate question.

Operator

Lau next And the comes you. question Owen from Oppenheimer. with Thank

Owen Lau

one How quick quarter to incremental you. should Just when impact hours financial for the VIX we year? of and potentially non-financial this from the options about Thank are the expanded fourth think a in and SPX me. Cboe,

Ed Tilly

on on Thank year how you. our we're Chris, you want doing back to effort. XXxX

Chris Isaacson

question. Yes, Owen great

hits So really is existing XXxX. themes the greater customers. major access new which about of access also But one This to excited customers. on to

and VIX outside options. year, nearly said, you launch for excited already get pending and bit. And saw last SPX regulatory We plan the as more call on actually in us that. XXxX fourth to this US in the this a XXX% VIX hours Working and trading will we trade growth SPX of hours. We XXxX than segment so So to quarter we're year-over-year very options and that global hard we futures approval.

in expectation. so customers three uptick share we to we've our equities opening volume up the hours to extended access number exceeding increase bit of will AM we X seen US come? hours a As coming Eastern of of market our the our there, in quite earlier kind precursor and an that, As

world the do. in as We're every So demand is that moving meeting customer XXxX and class. in We're we asset direction.

I'll Brian financial to a here. maybe it So impact for hand

Ed Tilly

you time and think the jump to note. important M&A more activity me Chris, if at I look just in let and one again

We is particularly really ground. very, and the timing US I Brian. approval small presence very, outperformed for X hard? we The and the around year think sales with APAC. together nicely. on were for the X. at the XXxX having coming and works so pretty closing now exposure there very market team. - the Chi If team into that on demand together very to clock, a really hopefully really data Chi the sales back awareness Who But us, you, look yes, - in of it's comes at nicely. But

Brian Schell

investments part into year. up as that is mentioned that wanted The more effort that roll out in annualized impact. of I been as far the muted I we mention, built again just again front our expectations to revenue it's as the later

a of part building access again. it's again very broad a So

As increase Chris people overall continuing advantage, network product Obviously to and the to suite. proprietary the the including mentioned suite. global access take product to

So more of full the But muted expense shared. is on the the XXXX. burden revenue side in

Owen Lau

very All right, much. Thank it. got you

Operator

Thank you. question Bedell Brian Deutsche with And next Bank. comes the from

Brian Bedell

a But maybe institutions you if European cohesive sale trade data you that to also, can global angle which into just that shifting back pieces and as data where in can starting that to some what can yourself sell of you both content distributors Maybe even from getting think things of data if view into whether or near you just you all concept. individual trying that the and about, to you proprietary of trade. how lot on sort talk the the a just data and cohesive market do platform you a sounds sale you and And and of the proprietary of that down go as maybe road. the of product of view markets both more more for data of this platform, like the really content the US with developing don't view timing have leaving the distribution global compete it's about side to of you could you're of talk I more that

Ed Tilly

to Chris, start? you want

Chris Isaacson

Yes, I'd love to.

opportunity put need data So under leader. charge offering recognized a we obviously group is the data Cathy leading the together Brian, recognized and tremendous Cathy this globally. you and there. Clay, well access we cohesive packaged We've solutions that

on we're I so say, early would to this maybe innings And middle effort.

be We'll nearly bought Hanweck the year, end and there. we fully integrated So trade by this year. alert done FT of last

coming putting of Brian of as US the of off now. the all remained XX% Now that certain products sold together outside real-time exchanges with data our mentioned

that. it packaged not access that we're But existing normal access we're the they is middle together. getting it from to way use So more together. cloud bringing a to of which get the distribution is, excited so and still getting innings. But also just it's well We a not right way But have upon. to act to we had means, and efforts may customers with Technically we're new in I to customers. get the can might customers. mentioned, Also doing so. using the customers have current perspective in new think I that they sure whatnot exploration make data actually want about coming to the packaging

the an early group, of just have Chi hopefully excited securities network an middle this equity and - analytics amount we've So now together just the incredible a that about formed put close derivatives deep Cathy. position under amount an unparalleled we coming from on our global with to when data platforms, we data, X of with unique Asia very this But innings we're as together this. all acquisition

John Deters

This is John also there.

XX and data over data You Generally, only of think producive the about past or the done to of months. there their platforms. data, XX acquisitions the we've productive [ph] distribution packaging

think a we cohesive so, about haul. And them as

scope. and to You've scale revenue, heard performance of is and you the increasing this now on lot I today. what some We can It's seeing the examples in guidance that forward that. raise return terms of non-transactional give just. a and talk about direct the we're mean right of

Their much more footprint look side is really be that substantial to of replace sales all and For to Europe us. example, got as a a should had this that we we've tier systems forward at a for top of there. to components continuing buy routine risk again with sort at that of to globally win, look together. look a mandate sizable to North past America, Asia and well and works to quarter global we because firm in agreement bottom a likely effort it consulting that And top that package have we a lead

Brian Schell

moving lookout that potential we're of opportunity us the the CoinRoutes look it, into associated well. crypto important, great data data The data a incredible currency of at crypto. new will to data. is for price with on in market derive example always as analytics It's us sources just for be

So there's this We're come. going. just up getting to more and

Brian Bedell

years it XXXX. I out yet. year to not recurring as revenue there sounds next growth beyond. be But XXXX, will like think So of know a giving organic we it rate the tailwind guidance you're and good that

Ed Tilly

mad that us, answer can Debbie, be at forward-looking. question. nobody It's too Brian. Okay,

Operator

with right, question Capital. The from Hill Loop comes next you. Ken All thank

Ken Hill

didn't wanted hear anything ask the know in to initiative that's I I about I important ESG. comments today, within an Cboe.

data product important exposure, or given about you be the a across the Europe heading excited more or in and a there little Are resonate little forward? side going capabilities Asia. maybe and either that bit that guys breadth than a something of could US on to Just you're transactional the any from opportunities better seems

Ed Tilly

question. great a It's

Before I on the it turn to John product. over

ESG? of us. that's means important we So the Cboe It's what big for to what top reviewed all I even us. that move what's end. that of front the our This associates, to very just a a out recognize. and investing our it's can very there important in associates are for top of all think and me indices were is and advantage tradable, It's to send mind to to for of we mention is to how important our that this before deal on mind. report take us I customers report for about of out

I tradable there. partners opportunities, what's of some index to to start the want we our move So and John, and to see. want

John Deters

us We point insight ESG. thought the into really it process the To and Ed's Yes, walk Hi, at walk behind gives want Ken. really to start home. does thanks Ed. talk. talk That the

with So we our have can intelligent partners. conversations

are the making We you product, think deepest forte and our will future and the on tradable ESG be those partners with today, if all FTSE been product Russell, partners data whether or we forward has proceeding leading about in into substantial our partners. have partnerships That MSCI, way ESG here. S&P. products the always together investments

value-added leverage of to built of create see of products intend come over quarters. those fully they've really what those we couple next to light and partnerships interesting and you'll many off the So

Ken Hill

for all detail the there. Thanks it. Got

Operator

question Thank from next comes the Voigt you. KBW. with And Kyle

Kyle Voigt

Just wondering, a question earlier options if the an to follow-up customer reengagement and I can ask index complex. around the

Why? I using a products? to type is currently on that back is how information mix can know step of double-digit I has back, you the that your at wondering gather index track client of your relatively you're that whether in options of seeing on who reengagement flat changed more the just really complex double-digit think volume the if I'm Cboe any and growth and if been reengagement growth. kind reaccelerate record take have to rate. to data color volumes that few your So since and long - institutional the XXXX you type the options understand, of end efforts clients. that's trying over past past years Really

Ed Tilly

terrific that's question. Well a

in the complex. a that's auction, category is [indiscernible] not access have retail, access we're accommodate it what mini retail around in years. little to that our retail, futures, been to has looking is uptick been the in for the is, SPX to large that we It's dated order we have biggest that the size I of general which really, us size think observation been before and short change and in remarkable. is of Those into the what step. new and of SPX premium the then the see quite access trades telling saw a replaced contracts contracts at missing pandemic smaller which in what VIX with are traditional coming SPX, the But proprietary will the still really very does super put huge product in

we a for predict more to today on SPX. access or we're the new you'll So the of products would at access look movement which retail. more million contracts at side, allow think more allow traditional mini traditional day rotation new of they what and I the you working we that still like to see see retail the out our their is into $X.X a a retail, and providing clients you rotation retail, roughly smaller and order

that's So can that's seeing our But you, what I we're is [indiscernible]. biggest trade the goal. today. That's tell change

Operator

with next from And you. Thank Piper Rich Sandler. follow-up Repetto we'll

Rich Repetto

the earlier. the question seems This like I follows guess switch. on and other it trading That flip someone the question last April, in

you If VIX the at look chart.

lightened. outlook the home step volumes You with dropped in lightening sort down trading VIX I know think may not had pandemic at I stair of and that with as summer. X. some April for first any people just and we seems had of like down XX we or guess indication. the this work in the we've some the quarter pickup color there's running and saw from volumes It we we're see and to concern as the into etc. go We exposed

of so anyway, sort in So outlook as patch your on volumes far. hit we April, the

Ed Tilly

the a individual of volumes like I The that I think But trading actually names. attention time bit. spending for particularly the just just surprisingly volumes momentum not little that couple some spectrum. overall Rich, out had, has we has kind on, across see we individual little a volume weeks raised of [ph] opinion, the a of we our treating Trendmic retail

you're if in that volatile So the providing most single names. liquidity

VIX has raised since expect would more gone We went out should of options as [ph] the was trading, of again, But in mix. roll were market what buying saw again. containment what you VOL Really and if before. the You're volatility discount ETPs. trade normal and said down to see that as the traditionally us a the macro looking in interest we to see for can put for down. AUM is that a we layoff shape. what as we then, that can We We'll the roll to that more best implied relationship I today if historical

trade from cadence. to it be So replaced capture or single interesting a that see But name will to being with VOL our contracts VOL more back rotation. short [ph] as normal as a back more going do perspective. going see. proprietary excitement normal then trade The a We down roll to product bit and macro [ph] and

and has uniqueness market product I for that's not Cboe many having environment think a different. the of

and in again the shiny on in interesting stories what investor be a little and and and retail. let here headlines more So flashes going can the objects be We're and provide be retail for to we're going There's that's to investor long-term going after year me, comment after have to in retail. year sustainable going volume corner. out. education We're there's the

spikes, growth don't really sustainable and we chase those after. that's chase we So what we're

So I appreciate that.

Rich Repetto

Got Thanks. it. Thank you. Very helpful.

Operator

with Thank next you have follow-up and then also Alex we from UBS. a Kramm

Alex Kramm

tell a see year you. at you you. like customer regions, investors base is what the Thank indication that I feel new if And I market a you that and you've But should any underlying that clients growing? talking a ago or a access efforts are is, it efforts of want [indiscernible] maybe and don't But know macro of new fee or investing the question was Ed every that very can still are trading already. things quarters that new I structurally putting been But like, to and what didn't is we when you sales ask people sort new job and about why, the healthy into now. products. of some We're pertains this We the it's always sign. proprietary a also sort the trade always or see any and what clip and addressed like telling not. clients, growing So what ask as few looking to growing I all to be with are can is etc. feel miss the doing I still there doing data point that for? us, I good

Ed Tilly

set the Alex; perfectly and for with I you me think the up demand data data.

So data from and The is first. the testing an institutional back perspective.

Before conversion.

retail. of Zero. that. most that new from want retail new to some access the seen guidance we've conversion no So punch sites. I increasing. again, we've kind from that demand that's is of reflect There's the no seen, love fact the But popular I - That's for data the really the

millions in new will market retails proprietary in more the of all. our engage those broadly set product are not at So

head to fruit is conversion. the So style super educational story. European out. us contracts the numbers of start we'll a like the months this that, and a good in love to effort and for that's be from But of come. we're that's conversion chasing settled with for one cash retail, how your for telling us data the watch quarters is Hopefully management we going so hanging the easy that low year. what point we'll new in look the those are then We rest opportunity be We and and that

John Deters

This jump I'll John. just on is in as well. example concrete one

our really partners the That entry Access went the example of others. Flex great long target strategic of set While quarter, that true systems, to for through the two, many or we year guide set billion Silexx key to market at proprietary chain of every every and work month in options, one is NAV zero the is mechanics is product is set for boarding objectives of those our outcome platforms partners under work products the and product calculation which innovator, the on a process. whole a First towards asset management product over extending are between access. that new from $X required and products. the Trust past the and that our We the create indexes

provide are we to those of our All partners. things

our can they've had this volatile great offer needless to So funds. in products the so. last target year And proprietary or outcome the to of over they through that uptake market access say wrapper

Alex Kramm

quick just clarification, and Ed. Okay

Is that That think right? very have just just it's low as Like is that retail opportunities more reflection now. it's shouldn't You lot a again doubts, right? on you much this you not; I hanging institutional think fruit. a the to focused retail read

Ed Tilly

dated. Alex Sorry, retail institutional. it market. really a data to access super back was reference the is testing, not the history We've it Its seen Retail. of short

low effort is that do and being is the It I proprietary traditional access hanging hanging is the on not lead institutions. playing starts testing fruits SPX last into out think an [indiscernible]. millions were have lower fruit really to John, a the not institutions And I back set, that the longer. times of that that with pointed quarters. our referenced over customers So big out mover and retail who instead product complex the data, of

Alex Kramm

Thanks just making sure. again. Yes,

Ed Tilly

Thanks, Alex, for clarification.

Operator

Rosenblatt from question the next Thank you. Horgan Sean comes And with Securities.

Sean Horgan

I just wanted to announcement come CoinRoutes to back XXXX. from December the

of us was you Can the first expand plans and update XXXX. to think on I more in on your crypto be available originally progress there broadly? quarter with data to the get currency expect RealPrice involved

Ed Tilly

in Let to me We've start more market talked in broadly, ecosystem. are for CoinRoutes. John participants driver. an you We to crypto. We're the know build be past. go cash exposure to looking can the trying Access

then, the From you retail So agreement. Vaneck normally have demand bitcoin educated access in into in ETF so understand. that not SEC. And the trust big a trusted from a [ph] we focus throughout way. front start this to access then really the ETF And we with you to data, participants. a in and we'd love deliver We've there you the then that's market to customer-friendly in institutional education. take of investor and and way, ETF for satisfying CoinRoutes the done effort, need which and easy are

of early innings look all it pretty for more So long in that if we're and you crypto at haul. broadly the

couple a Thanks, question. words of on John CoinRoutes. great think I Sean,

John Deters

Thanks Ed. Great question, Sean.

operator. as we're want real you A actually at all the the with point, this. the do great we crypto and add and currency So of it to live price, our which Ed's from starts there CoinRoutes price accurate the identifying with excited lot CCCY now to an exchange Channel we indexes uptake things and trading CSMI your on we're reference prices about

broader So space beyond just exchange crypto revolutionary at what our and to currency we're between solving for operator and is those really offering participants. data regulated services interaction

Sean Horgan

great. Ed. John. That's Thanks Thanks

Operator

Thank you question-and-answer any floor for and the Koopman the it closing return does conclude comments. I'd to session. like Debbie to

Debbie Koopman

We Keith. Thanks interest That morning. you. call completes in this your appreciate company. time Thank and our continued our

Operator

attending conference Thank concluded. The presentation. today's now for you is you. Thank

lines. You may now your disconnect

Cboe Global Markets (CBOE) 30 Apr 212021 Q1 Earnings call transcript