Cboe Global Markets (CBOE) Barclays 24th Annual Global Financial Services Conference summary

Strategic realignment and growth focus

• Shifted from broad acquisitions to a core focus on derivatives, data, and high-growth areas.

• Exited marginal cash equities businesses and rationalized organizational structure to enhance focus and profitability.

• Emphasizing innovation in derivatives, including event and prediction markets, and expanding clearing capabilities.

• Targeting new products like binary yes/no S&P contracts and upcoming KPI contracts, pending regulatory approval.

• Strong growth in core businesses, especially in derivatives and data, with international expansion underway.

Market trends and customer behavior

• Retail participation is robust, especially among sophisticated users, aided by educational tools and 0DTE contracts.

• Lifting of pattern day trading restrictions led to a significant increase in retail trading volumes.

• Both retail and institutional activity are rising, with balanced growth across short- and long-dated options.

• International demand, particularly from APAC retail and Middle East institutions, is growing but still early-stage.

• Options-based ETFs have surged from $5B AUM in 2019 to $300B, with projections of $650B by 2030.

Product innovation and competitive landscape

• Binary event contracts aim to attract non-option traders, with KPI contracts set to deepen market engagement.

• Market makers and liquidity providers are committed to supporting new KPI products from launch.

• Competition is intensifying, especially around perps and prediction markets, but platform diversity and regulatory alignment are seen as key strengths.

• Perpetual futures (perps) are debated as substitutes for options, but options offer capped downside risk and established regulatory frameworks.