Cboe Global Markets Inc at Credit Suisse Financial Services Forum Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Gautam Dileep Sawant - CrTdit Suisse AG, Research Division - Analyst : Let's kick off with Cboe's recent announcement on organic Data and Access Solutions or D&A growth in the 7% to 10% range. Can you walk us through the tailwind Cboe's benefiting from?

Question: Gautam Dileep Sawant - CrTdit Suisse AG, Research Division - Analyst : And let's take that a step further, like how does Data and Access fit in with some of those initiatives on the transaction side? What incremental opportunities does your product expansion create?

Question: Gautam Dileep Sawant - CrTdit Suisse AG, Research Division - Analyst : And let's talk about Cboe's core offering. Options and cash equity volumes have grown tremendously. Can you talk about some of the tailwinds in the market right now? How durable is the current pace of activity? And how sustainable is retail participation?

Question: Gautam Dileep Sawant - CrTdit Suisse AG, Research Division - Analyst : So I want to stay on the core derivative offering here. Service was expanded to include 24x5, and you recently announced plans to launch Tuesday and Thursday expirations for the SPX. Can you help us understand how that is translating into growth? Where you expect to see the most incremental demand for weekly options products?

Question: Gautam Dileep Sawant - CrTdit Suisse AG, Research Division - Analyst : And then next, can you please provide us an update just on the Nanos launch that's expected to go live next month? What has been the initial customer feedback? And what segment of the market does this product address?

Question: Gautam Dileep Sawant - CrTdit Suisse AG, Research Division - Analyst : And I wanted to talk about some of the international initiatives that you have. Can you kind of walk us through what EuroCCP is and why you purchased that asset?

Question: Gautam Dileep Sawant - CrTdit Suisse AG, Research Division - Analyst : And as we kind of think about this, the build-out of pan-European derivatives exchange, you have a $25 million target. Can you walk us through the time line of that and how you expect to get to that and where you are currently in that process?

Question: Gautam Dileep Sawant - CrTdit Suisse AG, Research Division - Analyst : Great. Next, let's zero in on the opportunity to explain global cash equity competition with BIDS technology. What's in the playbook to repeat the success of BIDS in Europe and replicate that in Canada, Australia and Japan? And maybe let's just circle back to how the Chi-X acquisition fits into this overall strategy.

Question: Gautam Dileep Sawant - CrTdit Suisse AG, Research Division - Analyst : And I just want to stay on the strategic initiatives here. I wanted to unpack the digital asset opportunity ahead. I know it's early days as the transaction hasn't closed. But how does Cboe digital assets differentiate from the market?

Question: Gautam Dileep Sawant - CrTdit Suisse AG, Research Division - Analyst : And given the level of competition in the digital asset space, ErisX has offered derivatives [element] into bitcoin and other digital assets different from incumbents. How important is this offering from cash-settled derivatives? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 18, 2022 / 1:50PM, CBOE.Z - Cboe Global Markets Inc at Credit Suisse Financial Services Forum

Question: Gautam Dileep Sawant - CrTdit Suisse AG, Research Division - Analyst : I want to talk about your other strategic initiatives. In U.S. fixed income, you're expected to launch in 2Q 2022. Can you talk about how you can leverage the full amount FX protocol in the space and how that offering can kind of compete with incumbents?

Question: Gautam Dileep Sawant - CrTdit Suisse AG, Research Division - Analyst : As we look ahead to 2022, you provided expense guidance of $617 million to $625 million, which is the mid to high teens growth rate and an incremental $36 million to $42 million to account for the ErisX and NEO opportunities. Can you update us on where you're investing for the business and give us some of the puts and takes that will hit the earnings line?

Question: Gautam Dileep Sawant - CrTdit Suisse AG, Research Division - Analyst : Got it. And we can open it up to audience questions here. If you have a question, just please, notify the moderator and they'll bring a mic over and you can ask it. And while we're waiting for that to get taken care of, what are your capital deployment priorities for 2022? How do you think about the mix of organic growth, M&A, repurchases and growing the dividend here?

Question: Gautam Dileep Sawant - CrTdit Suisse AG, Research Division - Analyst : And I just want to touch upon like market structure with cash equities. We've seen the competition grow from a lot of new entrants. Some of them are looking to charge for market data now. Can you walk us through how that backdrop has kind of evolved over time? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 18, 2022 / 1:50PM, CBOE.Z - Cboe Global Markets Inc at Credit Suisse Financial Services Forum

Question: Gautam Dileep Sawant - CrTdit Suisse AG, Research Division - Analyst : I just wanted to touch upon here on your cloud initiatives. Can you walk us through what those are and how those can create expense savings in the future?

Question: Gautam Dileep Sawant - CrTdit Suisse AG, Research Division - Analyst : And like is there any benefit or desire to kind of push any transactional systems into the cloud over time? How do you deal with some of the issues like latency and matching engines in the cloud, like -- and I guess durability and staying online?

Question: Gautam Dileep Sawant - CrTdit Suisse AG, Research Division - Analyst : We have a question in the audience. Marcelo Fedato A. Telles - CrTdit Suisse AG, Research Division - MD of the Latin American Equity Research and Head of the Latin American Financials Sector Marcelo Telles, Credit Suisse. I cover LatAm exchanges. My question is with regards to your international expansion. What are the markets that you are currently not in that you'd like to be? And I ask this question also in the context of the recent investment you've done in Brazil. I think there was a small stake that you purchased at CSD, a registration platform in Brazil. So is Brazil a potential market for you in the future? And if so, which markets would be like -- would be more attractive to you if that was the case?

Question: Gautam Dileep Sawant - CrTdit Suisse AG, Research Division - Analyst : Can we just talk about global regulation and how that could be a tailwind and maybe Australia and Japan to push additional competition? And then once we talk about that, let's circle back to just regulation in the U.S. and how that's kind of developing and changing.

Question: Gautam Dileep Sawant - CrTdit Suisse AG, Research Division - Analyst : As you look ahead this year, what are you most excited about for 2022?

Question: Gautam Dileep Sawant - CrTdit Suisse AG, Research Division - Analyst : Got it. And with that, I think it's a good place to stop. Thank you for joining us today.