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CBOE's quarterly profit jumps 13.6 percent on increased volatility
July 29, 2016 / 11:56 AM / in a year

CBOE's quarterly profit jumps 13.6 percent on increased volatility

(Reuters) - CBOE Holdings Inc (CBOE.O), operator of the largest U.S. options exchange, reported a 13.6 percent rise in quarterly profit as market volatility boosted fees from transactions.

Net income allocated to CBOE’s common shareholders rose to $50.7 million, or 62 cents per share, in the quarter ended June 30, from $44.6 million, or 54 cents per share, a year earlier.

The company, which owns the Chicago Board Options Exchange, said operating revenue rose 9.8 percent to $163.3 million.

Excluding items, the company earned 60 cents per share, matching the average analysts’ estimate, according to Thomson Reuters I/B/E/S.

“Investors worldwide turned to CBOE’s marketplace in the face of increased market uncertainty leading up to and in the aftermath of the Brexit referendum,” CBOE Chief Executive Edward Tilly said in a statement on Friday.

Like other exchange operators, CBOE has benefited from concerns about global economic growth, which has sparked trading activity in recent quarters.

Transaction fees rose 16.1 percent in the quarter, with fees from indexes accounting for 64 percent of these.

Index options are traditionally Chicago-based CBOE’s highest fee-generating product.

Up to Thursday’s close, CBOE’s stock had risen 5.3 percent this year.

Reporting by Richa Naidu in Bengaluru; Editing by Anil D'Silva and Ted Kerr

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