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    Cboe Global Markets Inc (CBOE)

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    Business Description

    Cboe Global Markets, Inc. is a leading derivatives and securities exchange network that provides trading, clearing, and investment solutions across multiple asset classes, including equities, derivatives, FX, and digital assets, in North America, Europe, and Asia Pacific . The company operates six reportable business segments, each contributing to its revenue through transaction and clearing fees, data and access solutions, and derivatives markets . Cboe's offerings include trading in options, equities, futures, FX, and digital asset derivatives .

    1. Options - Facilitates trading in index options, equity options, and ETPs, with Cboe Options being the primary market .
    2. North American Equities - Involves U.S. and Canadian equities and ETP transaction services .
    3. Europe and Asia Pacific - Covers pan-European equities and derivatives, as well as trading venues in Australia and Japan .
    4. Futures - Includes trading of VIX futures and other products .
    5. Global FX - Offers institutional FX trading services .
    6. Digital - Focuses on digital asset derivatives, having previously included a spot digital asset trading market .

    Key Metrics

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    Executive Team

    NamePositionStart DateShort Bio
    Fredric J. TomczykChief Executive OfficerSeptember 2023Fredric J. Tomczyk is the CEO and a director at Cboe Global Markets. He was previously an independent director on Cboe's Board from July 2019 to September 2023. He is the retired President and CEO of TD Ameritrade .
    Catherine R. ClayExecutive Vice President, Global Head of DerivativesOctober 2023Catherine R. Clay has been with CBOE since 2015 in various senior roles. She was previously the EVP, Global Head of Data and Access Solutions from March 2021 to October 2023 .
    Stephanie FoleyExecutive Vice President, Chief Human Resources OfficerOctober 2023Stephanie Foley joined Cboe in 2022 and served as SVP, Chief Human Resources Officer of Cboe Exchange, Inc. from June 2022 to October 2023. She was previously the CHRO, Americas, at Kearney Holdings Limited .
    Jill M. GriebenowExecutive Vice President, Chief Financial OfficerJuly 10, 2023Jill M. Griebenow has been with Cboe since 2018, previously serving as EVP, Chief Accounting Officer and Treasurer. She was the CFO of Cboe Europe from 2014 to 2018 .
    David HowsonExecutive Vice President, Global PresidentMay 2022David Howson has been with Cboe since 2013, previously serving as EVP, President Europe and Asia Pacific. He was the COO of Cboe Europe from 2013 to 2019 .
    Adam InzirilloExecutive Vice President, Global Head of Data and Access SolutionsOctober 2023Adam Inzirillo joined Cboe in 2019 and served as SVP, Head of North American Equities. He was previously Managing Director at Bank of America Merrill Lynch .
    Christopher A. IsaacsonExecutive Vice President, Chief Operating OfficerJanuary 2019Christopher A. Isaacson has been with Bats since 2005 and joined Cboe following its acquisition of Bats. He has held various senior leadership positions, including EVP and Global CIO .
    Patrick SextonExecutive Vice President, General Counsel and Corporate SecretaryMarch 2018Patrick Sexton has been with Cboe since 1997, providing legal, regulatory, and compliance counsel. He was Deputy General Counsel from July 2013 to March 2018 .
    Allen WilkinsonSenior Vice President, Chief Accounting OfficerFebruary 2024Allen Wilkinson has been with Cboe since 2018, previously serving as VP, Controller. He held various positions at PricewaterhouseCoopers LLP from 2011 to 2018 .

    Questions to Ask Management

    1. Given the relatively low average daily volume of around 850 contracts per day in your European index options, what is your conviction level that this long-term investment will pay off, and what milestones are you targeting to validate this strategy?

    2. Despite returning $150 million in capital during the quarter, your cash balance has increased to about $600 million and net leverage continues to decrease. Is this buildup of cash driven by potential M&A opportunities, and how does this align with your shift away from M&A towards organic growth and returning capital to shareholders?

    3. With the significant growth of Cboe Global Cloud outside the U.S., can you elaborate on how meaningful its financial contribution is currently, and what initiatives are you undertaking to expand it further as part of your global expansion plans?

    4. As you focus on facilitating global investors' access to U.S. markets, how significant is the import business opportunity, and what challenges do you anticipate in capturing market share internationally, especially given the competitive landscape?

    5. You have stated that you are reallocating resources and changing your capital allocation strategy away from M&A towards organic growth initiatives and returning capital to shareholders. Can you provide more details on how this strategic shift will impact your expense growth, margins, and earnings growth in the near term?

    Share Repurchase Program

    Program DetailsProgram 1
    Approval Date2011
    End Date/DurationN/A
    Total additional amount$2.3 billion
    Remaining authorization amount$679.8 million
    DetailsThe documents do not specify any additional details about the program.

    Debt Maturity Schedule

    YearAmount Due (in millions)Debt TypeInterest Rate (%)% of Total Debt
    2027650.0Fixed Rate Senior Notes3.65044.8% = (650.0 / 1450.0) * 100
    2030500.0Fixed Rate Senior Notes1.62534.5% = (500.0 / 1450.0) * 100
    2032300.0Fixed Rate Senior Notes3.00020.7% = (300.0 / 1450.0) * 100

    Auditor

    NameStart DateEnd DateReason for Change
    KPMG LLP2020 PresentCurrent auditor.
    Deloitte & Touche LLP1973 2019 The change was made following a competitive request for proposal process.