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Derivatives exchange Cboe Global Markets (CBOE.Z) posted a jump in first-quarter profit on Friday, as heightened market volatility due to the Middle East conflict boosted options trading.
Shares of the company rose 4% in premarket trading after the exchange operator also said it will cut its workforce by about 20% as part of a strategic realignment.
"We announced a realignment to increase focus and investment in the core businesses that drive our earnings," said CEO Craig Donohue in a statement.
The company reported a net income allocated to common stockholders of $384.1 million, or $3.66 per share, compared with $249.4 million, or $2.37 per share, a year earlier.
Market swings intensified during the quarter, driven by the capture of Venezuela's President Nicolas Maduro and his wife by U.S. forces in January, AI disruption concerns, and as the U.S.-Israel war with Iran heightened risks to oil supply.
Periods of market turbulence lead to elevated trading and hedging activity, aiding transaction and clearing fees for exchange operators such as Cboe.
Average daily volume in index options hit an all-time high of 6.1 million contracts during the quarter ended March 31, compared with 4.8 million a year earlier.
Cboe's results add to a strong quarter for U.S. exchange operators, with volatility supporting higher activity across peers such as CME Group (CME.O), Nasdaq (NDAQ.O) and Intercontinental Exchange (ICE.N).
