July 31 (Reuters) - Cboe Global Markets ( CBOE ) reported a

surge in second-quarter profit on Friday, benefiting from strong

options trading volumes at a time of elevated market volatility.

Periods of market turbulence typically boost trading

activity as investors seek to profit from price swings, while

also increasing demand for options used to hedge portfolios

against risk.

Cboe, the largest U.S. options exchange, has benefited from

heightened market volatility driven by the U.S.-Iran conflict

and shifting investor sentiment around the AI trade.

The firm reported record monthly and quarterly U.S. options

volumes across its exchanges earlier this month, hitting a

single-day record of 33.4 million contracts on June 5, when

markets fell sharply.

Cboe holds the exclusive license to list options on the S&P

500 Index and offers a range of equity and derivatives products,

including those tied to its flagship VIX volatility index,

widely known as Wall Street's "fear gauge."

Its results round off a strong quarter for U.S. exchanges,

with Nasdaq, CME and Intercontinental Exchange ( ICE )

reporting profit ahead of Wall Street expectations.

Their stocks, however, have come under pressure from chatter

about the CFTC's approval of perpetual futures, which investors

perceive as posing a threat to the market share of incumbent

exchanges.

Cboe is the only stock among the exchange operators to have

risen this year, with shares up over 18%, thanks to its market

share in retail options trading and a workforce reorganization

earlier this year.

It reported adjusted earnings of $373.6 million in the

quarter, or $3.56 per share, compared with $257.8 million or

$2.46 per share a year earlier.

Net revenue from its options trading arm jumped 30% to

$473.9 million as total average daily volumes rose 26%. Total

net revenue was 25% higher at a record $731.6 million.