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Cboe Global Markets Considers June 1 Reopening of Iconic Chicago Options Trading Floor

By Eric Volkman – May 4, 2020 at 10:59AM

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The securities exchange operator will re-launch live trading, assuming it can do so with sufficient safety.

Cboe Global Markets (CBOE 1.56%) could reopen its flagship trading floor in a matter of weeks. CEO Ed Tilly said on Friday that the company will be prepared to have The Chicago Board Options Exchange trading facility open for business as of June 1.

Whether it actually does so will depend on how safely that can be accomplished, Tilly said. In line with the decisions of other exchange operators around the same time, Cboe temporarily closed the options trading floor on March 13, and has overseen electronic-only trading since then.

Two men at a table with laptops with a securities market graph on one of the screens.

Image source: Getty Images.

The Chicago Board Options Exchange is the largest and most influential options market on the planet. It is also Cboe's most recognizable asset, although the company facilitates the exchange of other types of securities besides options, and offers associated products.

Cboe might be eager to keep its recent business momentum going by reopening of the options trading floor. Last week, the company reported quarterly financials that revealed significant growth.

In the first quarter, thanks to increased market activity due to the uncertainty swirling around the coronavirus pandemic, its net revenue rose 28% year over year to a new quarterly record of $358 million. Non-GAAP (adjusted) net profit increased by 46% to $182 million.

"[W]e are well positioned to continue to successfully navigate this period of market turbulence, and to maintain our focus on delivering increased value to our customers and our shareholders in 2020 and beyond," Cboe wrote in the earnings release.

In midmorning trading on Monday, the company's shares were down by 0.7%.

 

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Cboe Global Markets Inc. The Motley Fool has a disclosure policy.

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