(Reuters) -Cboe Global Markets reported a rise in first-quarter profit on Friday, as strong demand for hedging products amid market volatility helped boost the exchange operator’s options trading volumes.
Geopolitical risks and macroeconomic uncertainties have fueled volatility in the markets, prompting investors and portfolio managers to hedge their positions.
Average daily volumes in total company options increased to 14.83 million contracts in the quarter ended March 31 from 14.66 million a year earlier.
Net revenue from Cboe’s options rose 10% to $307.4 million, while total options revenue per contract increased 12%.
Revenue from North America equities, however, dropped to $92.6 million in the quarter from $93.1 million a year earlier.
The exchange operator was hit by a 10% year-on-year revenue fall in the segment last quarter as well.
Cboe’s adjusted net income climbed to $227.7 million, or $2.15 per share, from $201.8 million, or $1.90 per share, a year earlier.
Shares of the company were up about 1.9% in thin volumes premarket.
(Reporting by Pritam Biswas in Bengaluru; Editing by Shinjini Ganguli)
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