CBOE Holdings, Inc. (NASDAQ:CBOE) Q4 2017 Earnings Conference Call - Preliminary Transcript

Feb 09, 2018 • 08:30 am ET


CBOE Holdings, Inc. (NASDAQ:CBOE) Q4 2017 Earnings Conference Call - Preliminary Transcript


Loading Event

Loading Transcript

Ed Tilly

including an increase in total options average daily volume of 11% on a combined company basis, outpacing the 4% gain made by the industry overall. New record trading volume in VIX options and futures, with each increasing 23% over the previous year. An all time high in SPX Weekly's trading, which drove another record year in SPX trading. An 82% increase in ETP listings, bringing our total number to 250 at year's end, with a market share of 12%.

Record trading in our Large in Scale platform, now one of the largest block trading facilities in Europe. Record Cboe FX market share and average daily notional volume, fueled by increased use of our London Matching Engine.

Our ability to deliver superior results across key business lines in 2017, while making great strides in our integration with Bats, positions us to more fully leverage our increased global reach and expanded product line.

Our mission to power potential, to stay ahead of an evolving marketplace is fueled by our commitment to relentless product innovation, leading edge technology and seamless trading solutions. I will take a minute here to look at our recent progress in those three key areas.

Our commitment to drive growth through product innovation, was evidenced by our December 10th launch of Cboe Bitcoin Futures, XBT. The world's first exchange listed regulated bitcoin futures product.

We are encouraged by the early trading in XBT futures, which continues to steadily build in an efficient, transparent and orderly marketplace.

At the time of our first XBT settlement auction on January 17, over 124,000 contracts had traded, representing a notional value of over $1.5 billion. Moreover, the successful settlement process worked exactly as designed. The migration of the Cboe exchanges on to Bats proprietary technology is central to our commitment to providing customers with superior trading technology. We expect the migration to maximize our value proposition and to power our company's ongoing growth. Working closely with our customers is key.

We held our fourth conference call with customers in December, and their feedback remains positive.

The migration of the Cboe Futures Exchange to Bats technology remains on track for February 25, 2018. We are simultaneously preparing for the migration of C2 options exchange planned for May 14, 2018.

I am pleased to add that we successfully launched our new index platform on January 22nd. The new platform serves as the foundation for our growing index business, and enables us to better calculate and disseminate data for new and existing indices.

We are committed to enhancing the customer's trading experience, through regulatory advocacy, new technologies, and education. We continue to work on behalf of our customers, by vigorously advocating for the SEC's approval of the Cboe Market Close auction, a closing match process for non-Cboe securities. We created CMC as a competitive alternative, and were encouraged by the approval of our proposal by the SEC staff on January 17th.

The subsequent appeals by competitors will delay the benefits we believe CMC can deliver to