Cboe Global Markets Inc at Goldman Sachs U.S. Financial Services Conference Transcript

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

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : So let's start with 2026 and maybe key sort of areas of focus for you. As a new CEO, you recently unveiled a pretty comprehensive strategic plan which included sort of parting ways with several subscale businesses. You announced Cboe Australia, Canada and obviously a few smaller products you have. While also kind of reemphasizing our core areas of growth and leading into some of the more things we talked about prediction markets and crypto and retail. So lots to cover all these topics, but key action items that you're trying to achieve in 2026 as you sort of embark on this plan? And what are the main targets we should all be looking at in kind of evaluating your progress on this path?

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Great. All right. We'll dive into really all three or four of those things. But the first maybe what -- we can start with some of the tangible things you announced, which is some of divestures. You've named the businesses. There was some press around it, obviously, in the last couple of weeks as well. And this is probably for both really for anybody who wants to jump in on this question. But as you think about the time line and execution of what you guys are trying to achieve with these divestitures is the hope to get most down in 2026? Or do you think that's going to trickle out further? And when you think about the benefits, you talked about the 5% to 7% in terms of net savings off of 2025 base. How much of that do you think ultimately is going to get reinvested to sort of support some of the growth initiatives that Craig talked about.

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Great. Okay. That's really helpful. Let's spend a couple of minutes on some of the new areas. Prediction markets have been kind of the buzzword for, I feel like the last couple of months. We've seen a bunch of announcements in that space from yourself as well as the industry broadly. So maybe help us sort of level set kind of what does the product road map looks like here? I know you -- it also sounds like you're planning on going at it more organically versus acquiring anything. So maybe walk us through the decision-making process there as well. And do you still see this largely, I guess, as a retail play? Or what are your expectations for some of this opportunity to become more institutionalized, especially in the way you design the products you're planning to come to market with?

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Yeah. How do you think the competitive landscape in that will evolve that, right? Because on the one hand, there's going to be a lot of product design, but that could be done by multiple different platforms, including some of the vertical integration we're starting to see between kind of the brokerage -- traditional brokerage models and the exchange model and some even clearing models, right? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 2:20PM, CBOE.Z - Cboe Global Markets Inc at Goldman Sachs U.S. Financial Services Conference So how do you make sure that if you guys do come up with something interesting the likes of the Robinhoods of the world, et cetera, don't just copy it over because there's no real IP presumably that will be attached to that kind of how do you think that will evolve? And how do you sustain that advantage?

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Right. Okay. That makes sense.

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Yeah. Okay. Let's double-click into some of the kind of existing businesses and places where you guys are trying to go deeper, so to speak, given the strategy. Starting obviously with the SPX, really unbelievable growth over the last several years has continued 0DTE option is

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Great. No, that makes a lot of sense. I did want to ask a question around the licensing with S&P Global as well. And recognizing it's still quite some ways away. This is not a [tomorrow's] question, but we do get asked questions so I figured I'm asking you as well. How are you thinking about just the contract renegotiation process with them? And also when you think about what CME's aspirations here might be, and obviously, you can't speak with them directly, but they did get approval to clear US treasury. So now there will be an SEC registered clearing house, which gives them an opportunity to maybe compete a little more effectively for something like that. So how do you expect this to play out, recognizing that this has been a really successful venture for S&P Global so they're not complaining about it.

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Great. All right. Maybe pivoting away from the trading business for a minute. Let's spend a couple of minutes here on the clock on Data Vantage. It's been a really good story for you guys also. Again, this year, the growth really accelerated, I think, on track at about 10%-ish year-to-date relative to your 7% to 10% target, so squarely in the upper end of that. What maybe has led to the sort of acceleration we've seen over the course of 2025. And I guess, more importantly, any early thoughts on how you're thinking about that for 2026?

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Great. Maybe to wrap up the conversation. I'd love to get your perspective. So on capital management, capital return, and I'll kind of include the M&A point in here as well because it does sound like larger deals or really -- any really material deal is kind of off the table. I mean your last comment sounded a lot more focused on the organic growth. The balance sheet is in great shape. You guys are generating a ton of free cash flow. There's going to be probably some proceeds from the divestitures that you've announced earlier. How are you

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Yeah. Great. Okay. We'll leave it there. Thank you all so much. I appreciate you spending the time with us this morning.