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Record options volumes in Q1 for CBOE

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Profit, revenue top Wall Street expectations

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Q2 off to robust start, outgoing CEO says

(Adds details on options trading in paragraphs 6-7 and graphic

at bottom)

May 2 (Reuters) - Derivatives exchange Cboe Global

Markets ( CBOE ) reported a record first-quarter profit on

Friday and boosted its annual revenue growth forecast as

heightened market volatility fueled strong growth in options

trading.

Exchanges thrive during times of market turmoil as trading

volumes surge and investors hedge their portfolios to manage

risk, driving up transaction and clearing fees for companies

such as Cboe.

Rivals CME Group ( CME ) and NYSE-parent Intercontinental

Exchange ( ICE ) also had record-breaking quarters as a barrage

of tariff-related headlines and the emergence of Chinese startup

DeepSeek's low-cost AI model drove up market volatility.

Revenue from Cboe's options trading arm jumped 15% to an

all-time high of $352.4 million. Its global FX and Europe and

Asia Pacific businesses also fetched record revenue in the

quarter.

Cboe now expects full-year revenue growth in the mid- to

high-single-digit percentage range, up from its previous

forecast of mid-single-digit growth.

"The second quarter is off to a robust start, and we look

forward to ... providing clients with a diverse toolkit of

products for any market environment," outgoing CEO Fredric

Tomczyk said.

Its average daily volume in index options hit a quarterly

record of 4.8 million contracts, a 17% jump from a year earlier.

The rising popularity of options trading as well as

increased activity from retail investors also boosted Cboe's

business.

NEW GUARD

Cboe late on Thursday named rival CME former top boss Craig

Donohue as its new CEO, effective May 7.

He succeeds Tomczyk, who has been at the helm since

September 2023 and steered Cboe through a challenging time after

the abrupt departure of former CEO Edward Tilly.

Excluding one-time costs, Cboe earned a record $2.50 per

share for the quarter, beating analysts' expectations of $2.36,

according to estimates compiled by LSEG.

Revenue jumped 13% to a quarterly record of $565.2 million,

beating expectations of $560 million.