Cboe Global Markets (CBOE) is one of the largest exchange holding companies and is the largest options exchange in the United States. Cboe generates the lion’s share of its operating revenue (~70%) through transaction fees on its exchanges. Since the business possesses an incredible economies of scale, the easiest and most cost effective way for Cboe to generate additional profits is through increased transaction volume.
The current heightened level of volatility should prove beneficial for Cboe in the short-term through increased hedging and speculative trading. Further, the business has a few long-term opportunities.