Cboe registers 20% Y/Y rise in global FX revenues in Q2 2022
Cboe Global Markets, Inc today reported financial results for the second quarter of 2022.
Global FX net revenue for the three months to end-June 2022 amounted to $16.6 million, up 20% from the year-ago period. The rise was a result of higher net transaction and clearing fees. Let’s note that, for the first quarter of 2022, Cboe reported global FX net revenues of $17.1 million, that is, the result for the first quarter was better than the one registered in the second quarter.
ADNV traded on the Cboe FX platform was $39.6 billion for the quarter, up 22% compared to last year’s second quarter and net capture per one million dollars traded was $2.71 for the quarter, flat compared to $2.71 in the second quarter of 2021.
Cboe FX market share was 17.0 percent for the quarter compared to 16.3 percent in last year’s second quarter.
Across all segments, total revenues less cost of revenues of $424.1 million increased 21%, compared to $350.6 million in the prior-year period, reflecting increases in net transaction and clearing fees and access and capacity fees.
Total operating expenses were $661.5 million versus $160.6 million in the second quarter of 2021, an increase of $500.9 million, primarily due to the impairment of goodwill recognized in the Digital reporting unit, driven by negative events and trends in the broader digital asset environment.
Diluted EPS for the second quarter of 2022 decreased 278% to $(1.74). Adjusted diluted EPS of $1.67 increased 21% compared to 2021’s second quarter results.
“Cboe delivered strong second quarter results to close out an exceptional first half of 2022. Activity across our ecosystem—cash, data and derivatives—was robust,” said Edward T. Tilly, Cboe Global Markets Chairman and Chief Executive Officer.
“Many of our newer initiatives, like the extension of trading hours for SPX and VIX Options to nearly 24 hours-a-day, five days-a-week and the addition of Tuesday and Thursday expirations for SPX Weekly options, have outperformed our early expectations in 2022, further accelerating the strong growth across our core businesses.
With the closing of the ErisX and NEO acquisitions in the second quarter, the entire Cboe team remains focused on extracting even greater value from the ecosystem we have created. The digital asset market environment has changed dramatically since we closed the ErisX transaction on May 2nd, which resulted in an accounting adjustment. We believe that the $220 million book carrying value reflects the reality of the market today, but in no way changes our enthusiasm for the digital asset space. We are intently focused on integrating our platforms and positioning Cboe for its next wave of growth in the quarters ahead.”