Cboe Global Markets, Inc., through its subsidiaries (Cboe), operates as an options exchange in the United States and internationally.
The company delivers trading, clearing and investment solutions to people around the world. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives, and FX, across North America, Europe, and Asia Pacific. Cboe’s subsidiaries include the largest options exchange and the third largest equities exchange operator in the...
Cboe Global Markets, Inc., through its subsidiaries (Cboe), operates as an options exchange in the United States and internationally.
The company delivers trading, clearing and investment solutions to people around the world. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives, and FX, across North America, Europe, and Asia Pacific. Cboe’s subsidiaries include the largest options exchange and the third largest equities exchange operator in the U.S. In addition, the company operates Cboe Europe, one of the largest equities exchanges by value traded in Europe, and owns Cboe Clear Europe, a pan-European equities and derivatives clearinghouse, BIDS Holdings, which owns a block-trading ATS by volume in the U.S., and provides block-trading services with Cboe market operators in Europe, Canada, Australia, and Japan, Cboe Australia, an operator of trading venues in Australia, Cboe Japan, an operator of trading venues in Japan, Cboe Clear U.S., an operator of a regulated clearinghouse, and Cboe Canada Inc., a recognized Canadian securities exchange. Cboe subsidiaries also serve collectively as a market globally for exchange-traded products (‘ETPs’) listings and trading.
Business
Cboe reports on the following six business segments:
Options: The Options segment includes options on market indices (‘index options’), as well as on the stocks of individual corporations (‘equity options’) and on ETPs, such as exchange-traded funds (‘ETFs’) and exchange-traded notes (‘ETNs’), which are ‘multi-listed’ options and listed on a non-exclusive basis. These options are eligible to trade, as applicable, on Cboe Options, C2, BZX, EDGX, and/or other U.S. national security exchanges. Cboe Options is the company’s primary options market and offers trading in listed options through a single system that integrates electronic trading and traditional open outcry trading on the Cboe Options trading floor in Chicago. C2 Options, BZX Options, and EDGX Options are all-electronic options exchanges, and typically operate with different market models and fee structures than Cboe Options. The Options segment also includes applicable market data fees revenues generated from the consolidated tape plans, the licensing of proprietary options market data, index licensing, routing services, and access and capacity services.
North American Equities: The North American Equities segment includes the U.S. equities and ETP transaction services that occur on fully electronic exchanges owned and operated by BZX, BYX, EDGX, and EDGA, equities transactions that occur on the BIDS Trading platform in the U.S. and Canada, and Canadian equities and other transaction services that occur on or through Cboe Canada Inc.’s order books. The North American Equities segment also includes corporate listing services on Cboe Canada Inc., ETP listings on BZX, the company’s common stock listing, and applicable market data fees revenues generated from the consolidated tape plans, the licensing of proprietary equities market data, routing services, and access and capacity services.
Europe and Asia Pacific: The Europe and Asia Pacific segment includes the pan-European listed equities and derivatives transaction services, ETPs, including exchange-traded funds, exchange-traded notes, and exchange-traded commodities, and international depository receipts that are hosted on MTFs operated by Cboe Europe Equities (Cboe Europe and Cboe NL equities exchanges) and Cboe Europe Derivatives (‘CEDX’). It also includes the ETP listings business on RMs and clearing activities of Cboe Clear Europe, as well as the equities transaction services of Cboe Australia and Cboe Japan, operators of trading venues in Australia and Japan, respectively, along with equities transactions that occur on the BIDS Trading platform in Australia and Japan. Cboe Europe operates lit and dark books, a periodic auctions book, a closing cross book, and two BIDS orderbooks; a Large-in-Scale (‘LIS’) trading negotiation facility and - predominantly for UK and Swiss symbols - a volume-weighted average price (‘VWAP’) trajectory crossing facility. Cboe NL, based in Amsterdam, operates similar business functionality to that offered by Cboe Europe (with exception of Trajectory Crossing), and provides for trading only in European Economic Area (‘EEA’) symbols. Cboe Europe Derivatives, a pan-European derivatives platform, offers futures and options based on Cboe Europe equity indices, and single stock options. Cboe Clear Europe offers the clearing of equity and equity-like instruments for Cboe-operated and other regulated trading venues, the clearing of derivative transactions executed on CEDX, and has recently introduced a service to clear Securities Financing Transactions. This segment also includes Cboe Europe, Cboe NL, CEDX, Cboe Australia, and Cboe Japan revenue generated from the licensing of proprietary market data and from access and capacity services.
Futures: The Futures segment includes transaction services provided by CFE, a fully electronic futures exchange, which includes offerings for trading of VIX futures and other futures products, the licensing of proprietary market data, as well as access and capacity services. On April 25, 2024, the company announced plans to transition the cash-settled margin Bitcoin and Ether futures contracts, currently available for trading on the Cboe Digital Exchange, to CFE in the first half of 2025, pending regulatory review.
Global FX: The Global FX segment includes institutional FX trading services that occur on the Cboe FX fully electronic trading platform, non-deliverable forward FX transactions (‘NDFs’) offered for execution on Cboe SEF, as well as revenue generated from the licensing of proprietary market data and from access and capacity services. The segment includes transaction services for the U.S. government securities executed on the Cboe Fixed Income fully electronic trading platform.
Digital: The Digital segment includes a regulated futures exchange (Cboe Digital Exchange) and a regulated clearinghouse (Cboe Clear U.S.), as well as revenue generated from the licensing of proprietary market data and from access and capacity services.
Strategy
The company’s strategies are investing in the continued growth of its core business in Global Derivatives; enhancing recurring revenue opportunities through Cboe Data Vantage; harnessing its global network to expand product reach and access; capitalizing on the demand for access to the U.S. capital markets; leveraging its superior technology to drive innovations; and allocating capital and resources to areas.
Proprietary Products
The company is a player in the volatility space with the volatility-based proprietary products it offers for trading. These volatility-based proprietary products are built through Cboe Labs, a dedicated team centered on the creation, development, and implementation of new ideas and its strategic relationships and license agreements with index providers. It offers proprietary products on its proprietary indices and indices owned by other index providers. Its most frequently traded proprietary products include SPX options and VIX options and futures.
SPX Options
The S&P 500 Index is an index containing 500 large-cap U.S. listed companies. It is one of the most commonly followed indices and is considered a bellwether for the U.S. economy. The SPX options offered on the S&P 500 Index are exclusive to Cboe and contribute substantially to its volumes and transaction fee revenues. Because of the S&P 500 Index’s status as a bellwether, SPX options are used in many different trading strategies by customers with different goals, including pension funds hedging their equity exposure by buying put options, asset managers seeking enhanced returns by selling covered call options, and hedge funds using risk-managed strategies to capture so-called ‘risk premia’ embedded in option prices. It also offers zero days to expiry (0-DTE) products, Long Term Equity AnticiPation Securities (LEAPs), Mini- and Nano-SPX options, FLEX- and FLEX micro-SPX options, and SPX Weeklys options, which have settlements on Mondays, Tuesdays, Wednesdays, Thursdays, Fridays, and on the last trading day of each month, and 24x5 trading in SPX options.
Volatility Trading
Cboe pioneered the trading of exchange-traded volatility products with its introduction of VIX futures and VIX options. The VIX Index, although not directly tradable, is based on the mid-point of real-time quotes of SPX options and is designed to reflect investors’ consensus view of future 30-day volatility. The VIX Index methodology provides the basis for the creation of VIX options and futures. The final settlement value of VIX options and futures is determined on their expiration date through a Special Opening Quotation (‘SOQ’) of the VIX Index. The SOQ calculation uses opening trade prices of selected options; unless there is no opening price, in which case the opening price used in the SOQ calculation is the midpoint of bid and lowest offer at the time of the opening. Since it started offering these products, it has seen trading from a number of different customer segments utilizing a number of different trading strategies, including hedging extreme stock market declines, also known as ‘tail risk’ hedging, and risk-managed strategies.
To help investors better manage market volatility, the company also offers the 1-Day Volatility Index (VIX1D), the U.S. Treasury Market Volatility Index (VIXTLT), VIX Weeklys options and futures, mini VIX futures, nearly 24x5 trading in VIX options and futures, Cboe S&P 500 Variance Futures, and Options on VIX futures.
Proprietary Indices
The company also calculates and disseminates proprietary indices that are licensed for use by third parties or are used as the basis for Cboe proprietary products. These proprietary indices are built through its in-house Cboe Labs research and development and Cboe Data Vantage business teams, often in connection with its strategic relationships and license agreements with index providers. The proprietary indices include: volatility indices based on broad-based market indices, such as the S&P 500 and the Russell 2000, volatility indices based on ETFs, indices based on Bitcoin ETFs, and options strategy benchmark indices, such as the Cboe BuyWrite, PutWrite, and Collar indices based on the S&P 500 and Russell 2000, BuyWrite and PutWrite indices based on MSCI EAFE and MSCI Emerging Markets indices, and BuyWrite indices based on other broad-based market indices.
In addition to any transaction fee revenue generated from trading of products based on these indices on Cboe exchanges, the company distributes these indices through the Cboe Global Index Feed index data subscription service and, together with index providers with whom it has strategic relationships, it licenses proprietary indices for third parties to use to create third-party indices and products. Accordingly, it generates revenue from proprietary indices by distributing them for reference purposes, using them as the basis for proprietary products, and licensing them for use for third-party indices and products.
Index Provider Relationships
The company has long-term business relationships with several providers of market indices. It licenses their indices, including on an exclusive basis, as the foundation for indices, index options, and other products. The company also has agreements in place to work jointly with key providers to develop new indices and products and services. Of particular note are the following:
S&P Dow Jones Indices (‘S&P’): The company has the following licensing arrangements with S&P:
S&P Indices: The company has the exclusive right to offer exchange-listed options contracts in the United States on the S&P 500 Index, the S&P 100 Index, the S&P 500 ESG Index, and the S&P Select Sector Indices as a result of a licensing arrangement with S&P. Its license from S&P is through December 31, 2033, with an exclusive license to trade options on the S&P 500 Index through December 31, 2032. It uses the market data from the trading of options on the S&P 500 Index and S&P 100 Index for the creation of Cboe volatility indices, such as the Cboe Volatility Index (‘VIX Index’), and to create tradable products on those volatility indices.
Markit Indices: The company has a worldwide license through August 22, 2025, to offer futures, options, and options on futures on indices designed to reflect the values of investment-grade and high-yield U.S. corporate bonds. Unless either party elects otherwise, this agreement auto-renews for successive two-year periods. Pursuant to its license, it offers futures and options on futures on yield and investment-grade corporate bond indices.
Dow Jones Indices: The company has the exclusive right during standard U.S. trading hours to offer listed options contracts in the United States on the Dow Jones Industrial Average and Dow 10 Index, and non-exclusive rights to offer listed options on several other Dow Jones indices, including the Dow Jones Utilities Average and Dow Jones Transportation Average. This licensing arrangement extends through December 31, 2033. It uses market data from the trading of options on these indices to create Cboe volatility indices, variance indicators, and BuyWrite indices, and it trades options and other products on these indices.
FTSE Russell: Under the company’s license agreement with the London Stock Exchange Group’s (‘LSEG’) index franchises, Frank Russell Company and FTSE International Limited (together ‘FTSE Russell’), it has the exclusive or first right in the United States to offer listed options on more than two dozen FTSE Russell indices, which represent a diverse group of domestic and global equities with international appeal. Its exclusive license from FTSE Russell is through April 1, 2030. It offers options on the Russell 2000, Russell 1000, Russell 1000 Value, and Russell 1000 Growth indices and mini-options on the Russell 2000 Index.
MSCI: The company has an agreement with MSCI Inc. (‘MSCI’) in which it has the right to offer U.S.-listed options on several of MSCI’s indices, including the MSCI EAFE, MSCI Emerging Markets, MSCI World, MSCI ACWI, and MSCI USA indices. The agreement term extends until December 31, 2031, but its license to list options on the MSCI indices contained in the agreement could expire on September 30, 2026. It uses market data from the trading of the MSCI EAFE and MSCI Emerging Markets index options (among other inputs) to calculate volatility indices and several versions of BuyWrite and PutWrite strategy indices.
Cboe Data Vantage
The Cboe Data Vantage business provides an offering of market data and information solutions products across multiple asset classes and geographic regions that are designed to suit its customers’ diverse needs. The Cboe Data Vantage business consists of three product groups:
Market Data and Access Services: Data products include real-time depth of book quotation information, auction and complex option information, top of book quotes and trades, last sale information, and consolidated equity feeds. The company’s market data offerings include proprietary data derived from its derivatives and cash and spot markets, as well as data relating to Cboe’s proprietary products, such as VIX futures. In addition to market data, access services include all access and capacity products, including connectivity, terminal and other equipment rights, maintenance services, trading floor space, permits for the opportunity to trade, and telecommunications services.
Cboe Global Indices: Services include index creation, calculation, licensing, and data dissemination. In addition to index data dissemination through the Cboe Global Indices Feed (‘CGIF’) platform, it distributes real-time cryptocurrency prices and indicative net asset values.
Risk and Market Analytics: Services include analytics and historical data with three areas of focus:
Data and Market Analytics: Services include aggregated equity and derivative market statistics, theoretical values, trading indicators, portfolio and margin risk, scenarios, and historical data from Cboe’s markets, as well as third-party consolidated data.
Front-End Platforms: Cboe provides multiple trading solutions and services, including Cboe Silexx, LiveVol Pro, FT Options, and Trade Alert.
Connectivity: Services include FIX Order Routing, Trade Drop Copy Network, Consolidated Audit Trail (‘CAT’) reporting, and broker connectivity.
The company provides data services to market participants globally through a number of distribution channels, including direct, via its vendor partners, and Cboe Global Cloud, which is its global cloud data distribution service.
The U.S. Tape Plans
The company also derives a portion of its revenue from market data fees from the U.S. tape plans, including Unlisted Trading Privileges (‘UTPs’), the Consolidated Tape Association (‘CTA’), and OPRA. Fees, net of plan costs, from UTP, CTA, and OPRA are allocated and distributed to plan participants, like the company, according to their share of tape fees based on a formula required by Regulation NMS.
Cash and Spot Markets
The company is an equities market operator, operating four U.S. equities exchanges, international exchanges in Europe, Canada, Japan, and Australia, as well as a number of alternative trading systems and an FX platform.
The company’s four U.S. equities exchanges, BZX, EDGX, BYX, and EDGA, which are fully electronic, operate various market and pricing models, including price-time, and price-time with retail priority, as well as various pricing models, including maker-taker and taker-maker fee structures. In addition to these market models, each of the U.S. equity exchanges provides numerous specific order types that are designed to enhance their respective market models.
BIDS Trading, the U.S. equities ATS market, which is fully electronic and is an independently managed and operated trading venue, separate from and not integrated with the Exchanges, utilizes a sponsored access model to provide anonymous executions in NMS stocks. Cboe and BIDS Trading collaborate in operating similar venues with its cash and spot markets in Australia, Canada, Europe, and Japan.
The company’s fully electronic Canadian securities exchange, Cboe Canada Inc., offers four order books, NEO-L, NEO-N, NEO-D, and MATCHNow, which operate various market models, including maker-taker, taker-maker, order priority, and frequent call matches with continuous execution opportunities, among others.
In Europe, the company operates a number of market models, including continuous Lit orderbooks, periodic auction orderbooks, dark midpoint orderbooks, a post-closing cross, as well as two BIDS Europe orderbooks.
Cboe Australia is a regulated stock exchange that is fully electronic. Cboe Australia utilizes a model that charges a different ad valorem fee rate depending on whether a participant is making or taking liquidity.
Cboe Japan offers two fully electronic displayed markets, Cboe-Alpha and Cboe-Select. Cboe Japan also offers two fully electronic non-displayed markets, Cboe-Match, which matches VWAP orders during pre-market hours, and Cboe BIDS Japan, which utilizes a price-time market model aiming for primary market mid-point trades.
The Cboe FX platform provides institutional FX trading services and utilizes a price-firmness-time priority market model. For its FX NDF markets, Cboe SEF utilizes a price-firmness-time priority market model.
Listing
Cboe operates five listing venues across the globe that are structured and designed, in the U.S. and Canada, for all types of equity instruments, such as ETPs, corporate securities, warrants, and depositary receipts, while in the UK and European Union (‘EU’), they support ETPs only. In Australia, both ETPs and warrants are supported. Over the course of 2024, Cboe added approximately 730 listings across the globe and had approximately 2,460 listings as of December 31, 2024. Cboe also offers intralisting on its different equities markets through Cboe Global Listings, the first-of-its-kind global listing network facilitating worldwide access to capital and secondary liquidity for companies and ETFs.
Clearing
The company’s subsidiary Cboe Clear Europe, a European central counterparty (‘CCP’), provides post-trade clearing services to stock exchanges, multilateral trading facilities, and for over-the-counter equities trades and exchange-traded derivatives trades. Cboe Clear Europe acts as a central counterparty that, for its clearing participants, becomes the buyer to every seller and the seller to every buyer. As a result, it guarantees the timely performance of the settlement obligations of buyers and sellers and takes on the risk of the performance of the transactions that it clears. Additionally, as a Financial Market Infrastructure, Cboe Clear Europe is subject to strict business continuity requirements and regulatory oversight. Cboe Clear Europe clears equities and equity-like instruments traded on multiple European trading segments. Cboe Clear Europe also clears equity derivative instruments traded on Cboe NL.
Customers
The company's customers generally include financial institutions, trading platforms, institutional and individual investors, and professional traders. The company’s equities and options customers in the United States include trading permit holders and members (as applicable) of Cboe Options, C2, BZX, BYX, EDGX, and EDGA, which are SEC-registered broker-dealers, and the customers of those broker-dealers. The company’s Canadian equities customers include members of Cboe Canada Inc., which are Canadian registered investment dealers. The company’s Australian customers include trading participants of Cboe Australia, which are Australian registered investment dealers, and certain clients of those dealers. The company’s Japanese customers include participants of Cboe-Alpha, Cboe-Select, Cboe-Match, and Cboe BIDS Japan, which are Japanese registered broker-dealers, and certain clients of those dealers. The company's ATS equities participants in the United States include subscribers of BIDS Trading, which are SEC-registered broker-dealers, and certain customers of those broker-dealers. The company’s futures customers include banks, futures commission merchants and their customers, hedge funds, asset managers, proprietary trading firms, and Commodity Trading Advisors. Similarly, the company's equities customers in Europe are EU regulated brokerage and proprietary trading firms, as well as sponsored access clients of these brokerage firms and certain non-EU regulated and unregulated direct access participants. Cboe Clear Europe clearing participants include EEA regulated banks and brokerage trading firms. The company’s institutional global FX customers include banks, broker-dealers, hedge funds, asset managers, proprietary trading firms, Commodity Trading Advisors, and corporates. Access to the company’s markets and trading rights and privileges depend upon the nature of the customer, such as whether the individual or firm is (or is eligible to become) a trading permit holder, trading privilege holder, member, participant, or subscriber of one of the company’s markets.
Technology
Cboe's Trading Technology
The trading platform for the company’s equities, options, and futures markets is built upon the Cboe Titanium technology platform. It is developed, owned, and operated in-house and is designed to optimize reliability, speed, scalability, and versatility. Using common protocols and features, Cboe’s unified Cboe Titanium technology platform is designed to offer customers an efficient, consistent experience regardless of where they are in the world. The company’s exchanges provide different market models, appealing to different user bases, and the trading technologies support all of them. Further, the technologies are designed to support many specialized features for each of the markets, such as dark pools, trade reporting facilities, systematic internalizers, Large-in-Scale, smart order routing, FLEX options, 24x5 trading, and hybrid trading (combining electronic and open outcry). In addition, Cboe and its applicable subsidiaries operate separate trading and/or clearing platforms, as applicable, for BIDS Trading, certain Cboe Canada Inc. order books, Cboe Digital Exchange, Cboe Clear U.S., Cboe Clear Europe, and Cboe FX.
The company’s trading platforms have generally experienced very low operational downtime and low latency. The company has undertaken significant efforts to upgrade its Cboe Titanium technology platform to help meet increased performance and capacity requirements and help ensure competitiveness, support growth, and advance a consistent world-class platform globally. The trading platforms use readily available hardware, thereby minimizing capital outlays required for each new market entry. Also, in order to continue to implement new enhancements to its trading platforms, new releases of software are generally deployed routinely in all of the applicable markets.
Disaster Recovery
The company operates and maintains geographically diverse disaster recovery facilities for all of its markets. It regularly tests its data center recovery plans and periodically carries out weekend tests using its back-up data centers, as well as an annual test with its U.S. trading participants. Cboe Canada Inc., as required by local regulations, conducts internal testing of its disaster recovery data processing capabilities at least annually and participates in the bi-annual testing coordinated by CIRO. Cboe Australia and Cboe Japan conduct internal testing of their disaster recovery data processing capabilities at least annually. In Europe, the company also regularly tests its data center recovery plans and periodically carries out weekend tests, which use its back-up data center, as well as an annual test with its European trading participants. The company continues to work to improve both the availability of its technology and its disaster recovery facilities.
Emerging Technologies
The company is exploring the potential use of new technologies, such as artificial intelligence (‘AI’), machine learning, blockchain, distributed ledger technology, quantum computing, the cloud, and other emerging technologies to potentially help drive new products, increase productivity, improve its self-regulatory oversight responsibilities, and increase automation of tasks.
Routing and Clearing
OCC is the sole provider of clearing on all of the company’s U.S. options exchanges and CFE. National Securities Clearing Corporation (‘NSCC’), a subsidiary of the Depository Trust and Clearing Corporation (‘DTC’), is the sole provider of clearing on the company’s U.S. listed equity exchanges. The Canadian Depository for Securities (‘CDS’) is the sole provider of clearing on all equities transactions occurring on Cboe Canada Inc. With respect to Australian equities and derivatives, Cboe Australia delivers matched trades of its customers to ASX Clear Pty Ltd and ASX Settlement Pty Ltd. ASX Clear Pty Ltd acts as a central counterparty on all transactions occurring on Cboe Australia. The Japan Securities Clearing Corporation (‘JSCC’) is the sole provider of clearing on all equities transactions occurring on Cboe Japan’s Cboe-Alpha, Cboe-Select, Cboe-Match, and Cboe BIDS Japan. BofA Securities, Inc. (‘BOA’) is the sole provider of clearing on all equities transactions occurring on BIDS Trading. Cboe Europe Equities relies on LCH Limited and LCH SA (‘LCH’), Cboe Clear Europe, and SIX x-clear Ltd (‘SIX x-clear’) to clear trades in European listed equity securities and exchange-traded products as part of an interoperable clearing model. For derivatives, Cboe NL relies on Cboe Clear Europe to clear both index and single stock derivative contracts. With respect to the U.S. government securities transactions executed on Cboe Fixed Income, the company uses Mirae Asset Securities (USA) Inc. to deliver matched trades to the Fixed Income Clearing Corporation (FICC) Government Securities Division (GSD), which acts as a central counterparty on all transactions occurring on Cboe Fixed Income and, as such, guarantees clearance and settlement of all of those matched trades. For SFT in cash equities and ETFs, Cboe Clear Europe provides central clearing, settlement, and post-trade lifecycle management. Cboe Clear U.S. is the sole provider of clearing and settlement of all digital asset transactions occurring on Cboe Digital Exchange in cash-settled margin futures on Bitcoin and Ether.
Cboe Trading is a routing broker-dealer used by the company’s four U.S. equities exchanges and its four U.S. options exchanges, including the electronic platform portion of Cboe Options. Cboe Trading’s clearing firms are Wedbush Securities, Inc. (‘Wedbush’) and Morgan Stanley & Co. LLC (‘Morgan Stanley’).
Digital Assets and Recent Developments
Cboe Digital is an operator of a CFTC-regulated futures exchange (Cboe Digital Exchange) and a CFTC-regulated clearinghouse (Cboe Clear U.S.). Prior to May 31, 2024, Cboe Digital Exchange and Cboe Clear U.S. also operated the U.S.-based spot digital asset trading market (‘Cboe Digital spot market’), but as of May 31, 2024, the Cboe Digital spot market is closed for all participant and trading purposes. Cboe Digital does not engage in proprietary trading activities and does not maintain a trading entity. Cboe Digital does not maintain any digital assets, does not itself trade digital assets, does not trade on its own exchange, and does not maintain an affiliate trading entity for purposes of trading, market making, or liquidity provision on its exchange. Cboe Clear U.S. maintains its own operating funds in separate bank accounts from its customer funds.
Trademark
Cboe, Cboe Global Markets, Cboe Volatility Index, Cboe Clear, Cboe Datashop, Cboe Futures Exchange, Cboe Digital, Cboe Hanweck, Cboe LIS, Bats, BIDS Trading, BYX, BZX, CFE, EDGA, EDGX, Hybrid, LiveVol, MATCHNow, NANO, Options Institute, Silexx, The Exchange for the World Stage, VIX, VIX1D, and XSP are registered trademarks, and Cboe BIDS Europe, C2, Cboe Data Vantage, Cboe Titanium, Cboe Ti, f(t)options, Trade Alert, and VIXEQ are service marks of the company and its subsidiaries. Standard & Poor's, S&P, S&P 100, S&P 500, and SPX are registered trademarks and DSPX is a service mark of Standard & Poor's Financial Services LLC and have been licensed for use by Cboe Exchange, Inc. Dow Jones, Dow Jones Industrial Average, DJIA, and Dow Jones Indices are registered trademarks or service marks of Dow Jones Trademark Holdings, LLC, used under license. Russell and the Russell index names are registered trademarks of Frank Russell Company, used under license. FTSE and the FTSE indices are trademarks and service marks of FTSE International Limited, used under license.
MSCI and the MSCI index names are service marks of MSCI Inc. (‘MSCI’) or its affiliates and have been licensed for use by the company.
Regulatory Environment and Compliance
Various aspects of the company’s business are subject to regulation by the SEC, CFTC, FINRA, various state regulators, CIRO, the Canadian Securities Administrators (and, in particular, the Ontario Securities Commission or ‘OSC’), the Australian Securities & Investments Commission (‘ASIC’), JFSA, JSDA, ESMA, FCA, the Central Bank of the Netherlands (‘DNB’), AFM, Bank of England, and other international regulatory authorities.
As registered national securities exchanges, virtually all facets of the company’s Exchange operations are subject to the SEC’s oversight, as prescribed by the Exchange Act. Cboe Canada Inc. is subject to comprehensive regulation and oversight by its primary provincial securities’ regulatory authority, the OSC. In addition, Cboe Canada Inc. is a Marketplace Member of, and subject to a regulation services agreement with, CIRO. Cboe Australia is subject to comprehensive regulation and oversight by ASIC. Cboe Japan is subject to comprehensive regulation and oversight by the JFSA and the JSDA.
The operations of each of CFE and Cboe SEF are subject to regulation by the CFTC under the Commodity Exchange Act (‘CEA’). Cboe Digital Exchange is a CFTC-registered designated contract market, and Cboe Clear U.S. is a CFTC-registered derivatives clearing organization, each of which is subject to the oversight of the CFTC and to a variety of ongoing regulatory and reporting responsibilities under the CEA. Cboe Clear U.S. has surrendered its BitLicense from the New York Department of Financial Services (‘NYDFS’).
Cboe Europe is located in London and is subject to regulation in the UK and to certain European regulations. The current UK regulatory system was established by the Financial Services Act 2012 (‘FSA12’), which amended the Financial Services and Markets Act 2000. The legislation replaced the previous financial services regulator, the Financial Services Authority, with three new bodies: The Financial Policy Committee (‘FPC’), The Prudential Regulation Authority, and the FCA. Cboe Clear Europe and Cboe NL are located in Amsterdam and subject to Dutch law and regulation. The current Dutch regulatory system was established by the Act on Financial Supervision. Financial conduct of markets, including activity on, and the operation of, markets is regulated by the AFM. Cboe NL is also subject to regulation by ESMA.
Cboe Trading, BIDS Trading, and Cboe Fixed Income are subject to SEC and SRO rules, as applicable, and, as registered broker-dealers, regulations concerning all aspects of their businesses, including trading practices, order handling, best execution, anti-money laundering, handling of material non-public information, safeguarding data, reporting, capital adequacy, record retention, market access, and the conduct of their officers, employees, and other associated persons.
Certain aspects of Cboe Global Markets are also subject to SEC, FCA, and AFM oversight, including certain ownership and voting restrictions on its stockholders. All of the company’s Exchanges, CFE, and Cboe Digital Exchange are participants in various cooperative and regulatory information sharing agreements, including in the Intermarket Surveillance Group (‘ISG’). In addition, Cboe Global Markets indirectly holds all of the issued share capital and voting rights in Cboe Europe and its wholly-owned subsidiaries, Cboe Chi-X Europe and Cboe NL.
The company’s U.S.-based exchanges are responsible for assessing the compliance of their TPHs or members, including Cboe Trading, with the respective exchange’s rules and the applicable rules of the SEC and/or CFTC. The company is member participants of several NMS plans, including, but not limited to, the following: Cboe Options, C2, BZX, and EDGX are member exchanges in OPRA, which is the designated securities information processor for market information that is generated through the trading of exchange-listed securities options in the United States, and it disseminates certain core trading information, such as last sale reports and quotations.
History
The company was founded in 1973. It was incorporated in the state of Delaware in 2006. The company was formerly known as CBOE Holdings, Inc. and changed its name to Cboe Global Markets, Inc. in 2017.
