Cboe Global Markets Expands Its Options Business in Europe

Cboe Global Markets (NYSEMKT: CBOE), already the owner of the largest options exchange in the U.S. and the biggest stock exchange in Europe, is expanding its derivatives business overseas. On Dec. 10, the company -- which makes most of its revenue through transaction fees on options trades -- announced that it will be launching futures and options trading on equity indices in Europe next year.

Image Source: Getty Images.

It's doing so via the acquisition of EuroCCP, an equity clearing and settlement organization that works with 18 different European markets covering 95% of the continent. David Howson, executive vice president at Cboe Global Markets and president of Cboe Europe, noted that the volume of options trading in Europe is currently just 8% of that in the U.S., meaning there is a great opportunity here for future growth for Cboe. That said, the acquisition and expansion are expected to dampen earnings in the short term, for up to four years.

Continue reading

Source Fool.com