Cboe Global Markets Posts Record Quarter on Surging Options Volume, Eyes Binary Contracts and 24/7 Trading
The exchange operator reported a 25% revenue jump to $732 million as retail traders drove index options to new highs, while launching prediction markets and pursuing round-the-clock equity trading.
Record Revenue Across All Segments
Cboe Global Markets reported record second-quarter net revenue of $732 million, up 25% year-over-year, with adjusted diluted earnings per share climbing 45% to $3.56 (earnings call, 2026-07-31). The company posted double-digit net revenue growth across all five business segments, driven by strength in derivatives, cash equities, and data services.
Derivatives net revenue reached a record $413 million, up 30% year-over-year, as index options average daily volume rose 32% to 6.2 million contracts. SPX options ADV hit 5.1 million contracts, including 3.1 million in zero-day-to-expiration (0DTE) options (earnings call, 2026-07-31).
Retail Surge Following Regulatory Change
A notable catalyst emerged in June when the Pattern Day Trader rule was repealed, eliminating restrictions that had limited frequent trading in smaller accounts. The impact was immediate: SPX 0DTE ADV increased 11% month-over-month in June, with estimated retail share rising to 57% from 53% in April and May (earnings call, 2026-07-31).
Mini SPX contracts, favored by retail traders, saw ADV surge 37% from May to June and more than 80% year-over-year in Q2. CEO Craig Donohue said the company anticipates "continued adoption of the Pattern Day Trader rules across our broker-dealer partners in the months ahead will be a tailwind for volumes and retail investors alike" (earnings call, 2026-07-31).
New Product Push: Binary Options and Event Contracts
Cboe launched Cboe Predicts in June, offering binary options on the Mini S&P 500 Index, as part of a broader expansion into event and prediction markets. In July, the company filed with the SEC to list contracts tied to company-specific performance metrics for 23 actively traded U.S. companies, though regulatory approval is still pending (earnings call, 2026-07-31).
Donohue emphasized the regulatory distinction: "We firmly believe these are securities products that should be overseen by the SEC and built within a framework of transparency and investor protection" (earnings call, 2026-07-31).
Clearing Infrastructure and Market Structure Evolution
The company filed for temporary SEC registration as a covered clearing agency and became subject to CFTC Subpart C regulations effective June 16, positioning it as a qualifying central counterparty under U.S. bank capital rules. Cboe stressed that its clearing expansion "are designed to be complementary to our long-standing partnership with OCC" for existing equity options (earnings call, 2026-07-31).
In cash equities, Cboe plans to expand trading to 23 hours a day, five days a week this December, "pending industry readiness with an eye toward 24/7 over time" (earnings call, 2026-07-31). North American equities net transaction and clearing fees jumped 37% on stronger industry volumes and improved capture rates.
Financial Outlook and Secular Tailwinds
Cash and spot markets net revenue grew 22% year-over-year, while Data and Access Services revenue rose 15%. Adjusted operating expenses increased just 2% to $217 million, contributing to a 37% jump in adjusted operating EBITDA to $528 million (earnings call, 2026-07-31).
Donohue highlighted three compounding trends: U.S. equity market dominance (the S&P 500 now has more than $20 trillion indexed or benchmarked to it globally), growing retail participation (U.S. household financial assets growing 6% annually for three decades), and the secular rise in options trading (U.S. options on pace for a seventh consecutive record year in 2026) (earnings call, 2026-07-31).
MarginX data shows upcoming Federal Reserve rate decisions scheduled for September 16 and October 28, 2026, which could influence volatility and options activity. Recent insider activity included tax withholding and small awards, with one notable sale by director Janet Froetscher of 1,223 shares.
This article was generated by MarginX from the earnings call on 2026-07-31. It is not investment advice.