Cboe quarterly profit surpasses expectations as trading activity surges

(Reuters) -Exchange operator Cboe Global Markets Inc beat fourth-quarter profit estimates on Friday, driven by heavy trading volumes from investors reworking their portfolios to hedge against risks from the market rout.

The company’s proprietary products, such as the options linked to the VIX volatility index and the S&P 500, saw heavy demand as investors wary of an economic downturn and a potential recession hedged against market gyrations.

The higher trading activity over the period pushed up transaction and clearing fees by 21.4% to $317.2 million for the three months ended Dec. 31.

The Chicago-based company, which provides trading platforms for equities, foreign exchange and derivative products across markets in North America, Europe and the Asia-Pacific region, saw a 35% increase in revenue from its major options segment, to $273.2 million in the quarter.

On an adjusted basis, net income rose to $1.80 per share in the fourth quarter, above Wall Street estimates of $1.76 per share, according to Refinitiv data.

(Reporting by Anirban Chakroborti in Bengaluru; Editing by Krishna Chandra Eluri)