© Reuters. FILE PHOTO: Chicago Board Options Exchange (CBOE) Global Markets sign hangs at its headquarters building in Chicago, Illinois, U.S., September 19, 2018. REUTERS/Michael Hirtzer/File Photo
(Reuters) -Exchange operator CBOE Global Markets recorded lower fourth-quarter revenue from North America equities on Friday that overshadowed an increase in the company’s quarterly profit.
The company’s shares fell more than 3% before the bell.
CBOE’s net revenue from North America equities fell 10% in the quarter, while its options segment also reported a lower market share of 33.5% from 34.1%.
Exchange operators grappled with a drop in new listings due to geopolitical pressures and the U.S. Federal Reserve’s aggressive interest rate hikes to curb inflation.
Some investors are expecting a turnaround in capital markets on mounting bets of a soft-landing, where inflation is controlled and chances of a recession are low, with social media firm Reddit, cloud security company Rubrik and software startup ServiceTitan expecting to go public this year.
CBOE’s revenue per contract increased 20% in the fourth quarter, while total average daily volumes rose 2%.
Strong demand for its derivatives products led the company to report a 21% jump in revenue from futures as traders rushed to secure their positions amid economic volatility that triggered massive market swings across asset classes.
On an adjusted basis, CBOE posted a profit of $218.8 million, or $2.06 per share, in the fourth quarter, compared with $192.2 million, or $1.80 per share, a year earlier.
Apollonas Kritikos