CBOE Holdings (CBOE)

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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs:   Globe Specialty Metals   •   LogMeIn   •   Invesco Mortgage Capital   •   Medidata   •   Chemspec

 

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Caleb Li

CBOE Holdings (CBOE) (NASDAQ:CBOE) is the largest options exchange in the U.S. with 1.13 billion contracts traded in 2009. Its core products include: equity options, index options, and options on ETFs. In 2009, equity options represented 56% of all options contracts. ^[1]

Based on World Federation of Exchanges data, in 2009 the global market for options was 8.8 billion options traded. According to The Options Clearing Corporation, the United States traded 3.6 billion options, with a 25% CAGR over the past 5 years. The growth can be attributed to many factors including: investors becoming familiar with options, acceptance of options by institutions, enhanced technology, transaction costs are smaller and incorporates electronic trading strategies, hedge funds' increase use, new financial products, and bid/ask spread is becoming smaller. ^[1]

The company's initial public offering of stock filed on the NASDAQ exchange on 11 March 2010. The proposed offer is the range of $27-$29. The company plans to raise $328 million by offering 11.7 million shares.^[1]

For FY2009 with year ended 31 December 2009, the company's total operating revenue was $426.1 million, up 2.2% from $416.8 million in total operating revenue for FY2008. Furthermore, the company had a net income of $106.5 million for FY2009, down 7.6% from $115.3 million in net income for FY2008. The revenues are primarily from transaction fees (74% of total), access fees (11% of total), and market data fees (5% of total). ^[1]

References

1. ↑ ^{1.0 1.1 1.2 1.3} CBOE Holdings S-1/A