Exchange operator Cboe profit beats on options and futures trade

[August 02, 2019]  (Reuters) - Cboe Global Markets Inc <CBOE.Z> beat analysts' estimates for quarterly profit on Friday, as strength in the exchange operator's options and futures business offset a softer trading environment in other areas.

 People walk by the Chicago Board Options Exchange (CBOE) Global Markets headquarters building in Chicago, Illinois, U.S., September 19, 2018. REUTERS/Michael Hirtzer

Revenue from options trading rose 3% to $140.8 million, while futures revenue climbed 4% to $32.6 million.

Derivatives such as options and futures are traded on Cboe's VIX index, Wall Street's so-called "fear gauge", which measures 30-day expected market volatility of the S&P 500 index.

Net income allocated to common stockholders rose to $87.6 million, or 78 cents per share, in the second quarter ended June 30, from $82.4 million, or 73 cents per share, a year earlier.

On an adjusted basis, Cboe earned $1.13 per share, beating analysts' estimates of $1.07, according to IBES data from Refinitiv.

Cboe's peers Intercontinental Exchange Inc <ICE.N> and CME Group <CME.O> saw a rise in transaction fee revenue in the quarter boosted by higher trading volumes.

The Chicago-based trading firm's net revenue fell marginally to $283.2 million.

(Reporting by Abhishek Manikandan in Bengaluru; Editing by Shailesh Kuber)

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