Cboe Global Markets, Inc. · CBOE:CBOE
Cboe Global Markets — CBOE Holdings — Merger or Acquisition (January 2009)
13 slides from Cboe Global Markets's merger presentation, Jan 6, 2009
Slide 1: Chicago Press Luncheon
Chicago Press Luncheon William Brodsky, Chairman and CEO Edward Tilly, Executive Vice Chairman Bradley Griffith, Member Vice Chairman 01/06/09 Filed by CBOE Holdings, Inc. pursuant to Rule 425 under the Securities Act of 1933, as amended Subject Company: CBOE Holdings, Inc. Subject Company’s Commiss
Slide 2: 2008: Unprecedented Times
CHICAGO BOARD OPTIONS EXCHANGE 2008: UNPRECEDENTED TIMES 2008 will go down in the history books as one of the most turbulent years ever for the stock market. Historical Market Drops •Just fifteen months ago, October 9, 2007, the S&P 500 Index was at a record high of 1565. •S&P 500 Index down 38.5% o
Slide 3: 2008: Historical Volatility
CHICAGO BOARD OPTIONS EXCHANGE 2008: HISTORICAL VOLATILITY In 2008, the markets endured volatility levels of historic proportions and the CBOE Volatility Index (VIX) sustained highs not seen in decades. •The CBOE VIX – a volatility measure that is CBOE homegrown – performed its function as an import
Slide 4: 2008: Record Numbers
CHICAGO BOARD OPTIONS EXCHANGE 0 250 500 750 1000 1250 2004 2005 2006 2007 2008 CBOE Total Volume In Millions 2008: RECORD NUMBERS Exchange Market Share 2008 Total Volume 33% 28% 15% 12% 6% 5%1% CBOE ISE PHLX NYSE AMEX BOX NSDQ Volume •Despite a downturn in the last two months, 2008 was a fifth cons
Slide 5: 2008: Beyond Options
CHICAGO BOARD OPTIONS EXCHANGE CBSX Average Daily Volume In Millions 0 5 10 15 20 25 30 J F M A M J J A S O N D 2007 2008 CBOE offers a multi-asset trading environment with stocks and futures available electronically. 2008: BEYOND OPTIONS CBOE Stock Exchange (CBSX) •CBSX continued to grow in its sec
Slide 6: Product Innovation
CHICAGO BOARD OPTIONS EXCHANGE 2008: PRODUCT INNOVATION Products •Binary options on SPX and VIX. •S&P 500 BuyWrite Index options (BXM). •Options on gold trust ETF (GLD). •Options on two new precious metals ETFs – iShares COMEX Gold Trust and iShares Silver Trust. Benchmarks •Extending the Exchange’s
Slide 7: Bright Spots
CHICAGO BOARD OPTIONS EXCHANGE 2008: BRIGHT SPOTS Amidst unprecedented market conditions, a pair of options-based strategies performed well relative to major indices. CBOE S&P 500 BuyWrite Index (BXM) •Strategy where investors buy and hold stock and write (sell) covered calls. While potentially fore
Slide 8: Strong Financials
CHICAGO BOARD OPTIONS EXCHANGE 2008: STRONG FINANCIALS Financials •3Q 2008, CBOE posted its best financial results ever. --Revenue: $120.1M, +24% (YTD: $259.3M, +24%) --Pre-Tax Income: $60.7M, +48% (YTD: $103.7M,+52%) --Net Income: $35.4M, +56% (YTD: $59.0M, +55%) --Operating Margin: 50.6% (+8.1% vs
Slide 9: Regulatory Leadership
CHICAGO BOARD OPTIONS EXCHANGE 2008: REGULATORY LEADERSHIP CBOE has been front and center as a regulatory advocate for the options industry and will continue to take a leadership role in regulatory reform. Short Sale Rule •Commented individually, and as part of the Options Exchange Coalition, on SEC
Slide 10: 2009: Looking Ahead
CHICAGO BOARD OPTIONS EXCHANGE 2009: LOOKING AHEAD Will Record Volume Continue? •Tension between de-leveraging and the flight from OTC markets. Can’t predict where this will lead. •Positive: potential for OTC business on exchanges; Negative: de-leveraging/cost pressures on hedge funds. Will OTC Busi
Slide 11: 2009: Looking Ahead - CBOE Demutualization
CHICAGO BOARD OPTIONS EXCHANGE 2009: LOOKING AHEAD CBOE Demutualization •The Exercise Right litigation slowed CBOE’s demutualization process (lawsuit filed in August 2006). •However, in that time, CBOE changed its business model and began operating as a for-profit company. •On December 16, the Delaw
Slide 12: CBOE Corporate Communications
CBOE CORPORATE COMMUNICATIONS Carol Kennedy Vice President, Corporate Communications 312.786.7323 kennedyc@cboe.com Gail Osten Director, Corporate Communications 312.786.7123 osten@cboe.com Gary Compton Director, Corporate Communications 312.786.7612 comptong@cboe.com
Slide 13: CBOE® and Chicago Board Options Exchange® are registered trademarks of Chicago Board Options Exchange,
CBOE® and Chicago Board Options Exchange® are registered trademarks of Chicago Board Options Exchange, Incorporated. This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state or jurisdiction