Cboe Global Markets Inc Q2 2025 Earnings Call Transcript

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

Question: Patrick Moley - Piper Jaffray Inc - Analyst : Yes. Good morning, and thank you for taking the questions. Craig, welcome. Really looking forward to working with you. I was hoping -- you talked a little bit about it. But I was hoping you could just maybe speak to the one or two key priorities that you have in coming into the role and how that might differ from previous leadership? And then more recently, [Fred] -- one of the things [Fred] talked about was an openness to doing potentially needle-moving M&A. And just given your experience with larger-scale M&A, how are you thinking about the inorganic growth opportunity for Cboe going forward?

Question: Benjamin Budish - Barclays Services Corp - Analyst : Maybe a narrower question just on the Data Vantage guide for the year. When I look at the sequential step-up in Data Advantage revenues, it looks like it was quite robust this quarter. And if the next couple of quarters look similar, like, maybe the last three or four quarters, it sounds like -- it seems like the guidance might prove to be conservative. Just curious if there's anything we should be thinking about in terms of the revenue model? Is there any reason that revenues shouldn't continue to sort of step up sequentially? Could you, perhaps, remind us like the various components and key drivers, new unit sales pricing and things like that, as we're kind of fine-tuning our models here? Thank you.

Question: Elias Abboud - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Good morning. Thanks for taking the question. I wanted to drill down into the long-term growth algorithm for index options volume. When 0DTE starts to reach maturity whenever that may be, what new themes, geographies, or products you have the most conviction can provide that next leg of growth? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 01, 2025 / 12:30PM, CBOE.Z - Q2 2025 Cboe Global Markets Inc Earnings Call

Question: Ashish Sabadra - RBC Capital Markets Inc - Analyst : Thanks for taking my question. Maybe just a question on the competitive environment of single-stock 0DTE and how that's evolving, and what does it mean for the index -- SPX index options going forward? Thanks.

Question: Owen Lau - Oppenheimer & Co Inc - Analyst : Good morning, and thank you for taking my question. Could you please give us an updated thought on attacking the globalization theme? Is there anything you would do differently over the next 12 months? And how do you plan to capture this opportunity here? Thanks a lot.

Question: Brian Bedell - Deutsche Bank AG - Analyst : Great. Thanks. Thanks for taking my question, and welcome back, Craig. Looking forward to working with you as well. Maybe if I can sort of zoom out, Craig, and just your perspective on how the securities exchange industry has evolved and how you think it might evolve in the future. And then what I'm really getting at is, from a number of different angles, retail client engagement, whether you see that as classically cyclical. Or there's a much stronger structural trend there. And then the movement towards 24/7 trading and then potential adoption of tokenization, and whether you think US regulators -- how have heavy of a lift is it to bring this on. And then how are you thinking about -- if you're believing in that, how are you thinking about your position and what you might do to leverage these trends?

Question: Kyle Voigt - Keefe Bruyette & Woods Inc - Analyst : Hey, good morning. So, Craig, I'll echo the comments of everyone else. Looking forward to working with you. We're at much later stages of direct exchange consolidation, at least, relative to the last time you were an exchange CEO. And since then, many of your peer exchanges have since turned towards other nontrading businesses, such as information services, as a pathway for inorganic growth. I guess, what are your thoughts on that strategy of diversifying away from trading-oriented businesses as an exchange operator? And is a move towards non-transaction revenues a part of the larger goal in terms of inorganic growth for you? Or kind of how do you view that as a part of your inorganic strategy? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 01, 2025 / 12:30PM, CBOE.Z - Q2 2025 Cboe Global Markets Inc Earnings Call

Question: Michael Cyprys - Morgan Stanley - Analyst : Hey, good morning. Thanks for taking the question. I wanted to circle back to some of the commentary on the tokenization and blockchain. More of an industry, bigger-picture-focused question. Just given all the advancements that we're seeing in technology and the evolving regulatory backdrop, I'd just be curious your views around tokenization and blockchain. What use cases do you find -- think to be most compelling? What are some of the hurdles, roadblocks, as you think about implementation across the industry that could ultimately, if resolved, overcome -- how that might be overcome that may lead to broader adoption as this technology has been around for many years? So curious your views around what the big unlock might be, and then what implications might this have for the industry? Thank you.

Question: Christopher Allen - Citi Infrastructure Investments LLC - Analyst : Yeah, morning everyone. Craig, welcome back. I wanted to circle back on single-stock 0s. And just based on our internal discussions, there's been industry push here. And expectations are probably going to slow down sometime early next year. So I was just wondering, do you see any potential for the structure here to change to overcome some of the problems that Cathy talked about before? Any specific issues that would prevent these to be launched? And then any color on just how much of an impact you see on SPX 0s during -- maybe on days when Mag 7 stocks announce earnings and things like that?

Question: Elias Abboud - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Hi, thanks for taking the follow-up. I believe the changes to the OCC margin model to become effective this fall. How material are you anticipating that event to be? And in particular, do you think the margining changes will affect the growth trajectory of 0DTE?