Cboe Global Markets, Inc today reported its financial results for the first quarter of 2023.
Global FX net revenue of $18.5 million increased 8% from the year-ago quarter, primarily as a result of higher net transaction fees.
ADNV traded on the Cboe FX platform was $45.0 billion for the quarter, up 7 percent compared to last year’s first quarter, and net capture per one million dollars traded was $2.64 for the quarter, down 1 percent compared to $2.67 in the first quarter of 2022.
Cboe FX market share was 19.0 percent for the quarter compared to 17.3 percent in last year’s first quarter, which sets a quarterly record for Cboe FX. The record was driven by increased client adoption of Cboe’s diverse set of FX order types and trading protocols.
Across all segments, total revenues less cost of revenues (referred to as “net revenue”) of $471.4 million increased 13 percent, compared to $418.1 million in the prior-year period, reflecting increases in derivatives markets and data and access solutions net revenue, partially offset by a decrease in cash and spot markets net revenue. Inorganic net revenue in the first quarter of 2023 was $4.4 million.
Total operating expenses were $223.5 million versus $178.4 million in the first quarter of 2022, an increase of $45.1 million, while adjusted operating expenses1 of $186.2 million increased 28 percent compared to $145.8 million in the first quarter of 2022. These increases were primarily due to the acquisitions of Cboe Digital (formerly ErisX) and Cboe Canada (formerly NEO), as well as higher compensation and benefits, travel and promotional, and technology support services expenses.
Diluted EPS for the first quarter of 2023 increased 60 percent to $1.63 compared to the first quarter of 2022. Adjusted diluted EPS of $1.90 increased 10 percent compared to 2022’s first quarter results.
“Cboe marked an important milestone last week as we celebrated our fiftieth anniversary. The years since our founding in 1973 have been marked by relentless innovation and our record first quarter results reported today demonstrate that Cboe is as well positioned as ever to deliver value for our customers and shareholders for years to come,” said Edward T. Tilly, Cboe Global Markets Chairman and Chief Executive Officer.
“The first quarter highlighted continued strength in Cboe’s global Derivatives and Data and Access Solutions businesses. Recent innovations including expanded trading hours and new expirations have increased access to our suite of derivatives products, providing our diverse set of customers with tools to navigate any market environment. The strong start to the year demonstrates continued progress as we invest across our global ecosystem. I would like to thank all of the employees and partners who helped make Cboe’s first 50 years so successful, and I look forward to building on our five decades of trusted expertise as we plan for the next 50 years with the same passion and entrepreneurial spirit we had in 1973.”
