Cboe reports 16% Y/Y rise in global FX net revenue for Q1 2022
Cboe Global Markets, Inc today reported financial results for the first quarter of 2022.
In the first three months of 2022, global FX net revenue of $17.1 million increased 16%, primarily as a result of higher net transaction and clearing fees. ADNV traded on the Cboe FX platform was $42.0 billion for the quarter, up 13% compared to last year’s first quarter and net capture per one million dollars traded was $2.67 for the quarter, up 1% compared to $2.65 in the first quarter of 2021.
Cboe FX market share was 17.3% for the quarter compared to 16.5% in last year’s first quarter.
Across all segments, net revenue amounted to $418.1 million in the first quarter of 2022, up 14%, compared to $365.5 million in the prior-year period, reflecting increases in net transaction and clearing fees and access and capacity fees. Inorganic net revenue in the first quarter of 2022 was $8.4 million.
Total operating expenses were $178.4 million versus $160.9 million in the first quarter of 2021. Adjusted operating expenses¹ of $145.8 million increased 17 percent compared to $124.6 million in the first quarter of 2021, primarily due to the acquisition of Cboe Asia Pacific (formerly Chi-X Asia Pacific), which closed on July 1, 2021, as well as an increase in salaries and wages resulting in higher compensation and benefits.
Additionally, professional fees and outside services increased compared to the first quarter of 2021 primarily due to higher legal fees.
Diluted EPS for the first quarter of 2022 decreased 20 percent to $1.02 primarily due to $48.5 million of additional tax reserves, primarily related to Section 199 litigation. Adjusted diluted EPS of $1.73 increased 13 percent compared to 2021’s first quarter results.
Edward T. Tilly, Cboe Global Markets Chairman, President and Chief Executive Officer, commented:
“2022 is off to an extraordinary start with Cboe delivering record quarterly results following a record year in 2021. Not only did our core derivatives franchise perform remarkably well during the quarter, but we saw strong contributions from areas like our European cash equities and our Data and Access Solutions businesses, underscoring the power of the flywheel at the heart of Cboe’s global value creation model.
These comprehensive results validate the investments we are making across our ecosystem around the globe. Moving forward, we look to build on our strong foundation with the expected close of the NEO and ErisX acquisitions, expansion of our SPX Weekly Options product suite and continued growth of our European Derivatives platform. There is a tremendous amount of momentum at Cboe, and I am incredibly proud of the Cboe team’s ability to deliver on the company’s longer-term aspirations.”