Cboe Global Markets, Inc. · CBOE:CBOE
Cboe Global Markets — Investor Presentation (July 2020)
18 slides from Cboe Global Markets's investor presentation, Jul 2, 2020
Slide 1: Cboe Europe Derivatives
Cboe Europe Derivatives July 2, 2020 1
Slide 2: Today's Speakers
Today’s Speakers Strategic Review Ed Tilly Chairman, President and CEO David Howson President, Europe Brian Schell EVP, CFO and Treasurer Questions & Answers Ade Cordell President, Cboe NL 2
Slide 3: Cautionary Statements Regarding Forward-Looking Information
Cautionary Statements Regarding Forward-Looking Information This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. You can identify these statements by forward-looking words su
Slide 4: Expanding Our Global Leadership in Derivatives
Expanding Our Global Leadership in Derivatives Cboe is committed to defining markets by being the global leader in innovative tradable products and services Grow Leverage Scale & Addressable Strengths Market Cboe Deeper Level Europe of Engagement Derivatives* Innovative & Solutions to Understanding
Slide 5: Growing our European Business
Growing our European Business 5
Slide 6: Cboe Europe Equities Blueprint for Success
Cboe Europe Equities Blueprint for Success Cboe simplifies cross-border trading and keeps Europe’s capital markets connected Helsinki Oslo 26.7% 22.8% Stockholm 22.3% Dublin Copenhagen 24.4% London 22.4% 24.3% Amsterdam 20.5% Brussels 24.5% Frankfurt 20.3% Paris Vienna 24.0% 25.4% Milan 12.9% Lisbon
Slide 7: Leveraging Our Ecosystem to Build New Markets
Leveraging Our Ecosystem to Build New Markets Equities Trading Market Derivatives Data Indices 7
Slide 8: Building Pan-European Market Infrastructure
Building Pan-European Market Infrastructure Joins together two leading pan-European market infrastructure providers • Brings together two pan-European organizations that have long championed competition, open access, clearing interoperability • Europe’s most connected equity central counterparty (CC
Slide 9: Lack of Transparency, Competition and Poor Market Structure Has Hindered Growth
Lack of Transparency, Competition and Poor Market Structure Has Hindered Growth Equity + Index Options Market Landscape – Europe vs U.S. Notional Value Traded (USD) $180,000 Billions $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2
Slide 10: Current Market Structure Provides Sub-Optimal Experience
Current Market Structure Provides Sub-Optimal Experience State of exchange-traded equity derivatives in Europe • Market dominated by a pre-arranged block trading model actively encouraged by incumbent exchanges • Limited on-screen liquidity • Fragmented market Current Market Structure Index Products
Slide 11: An Opportunity to Vastly Improve Market Dynamics
An Opportunity to Vastly Improve Market Dynamics Leveraging our derivatives expertise and world-class technology to grow a better marketplace for participants to express views Trading participants New market model Vibrant, deep and increasingly that prioritises on- liquid U.S. style frustrated by lo
Slide 12: Cboe Europe Derivatives: Transparent, Efficient, Simple Pan-European Derivatives Trading
Cboe Europe Derivatives: Transparent, Efficient, Simple Pan-European Derivatives Trading Cboe Europe Index Options | Cboe Europe Index Futures Phase 1 Product Suite – Futures and Options on Six Key Benchmarks Cboe Eurozone 50 Cboe UK 100 Cboe Netherlands 25 Cboe Switzerland 20 Cboe Germany 30 Cboe F
Slide 13: A Single Access Point for Pan-European Derivatives Trading and Clearing
A Single Access Point for Pan-European Derivatives Trading and Clearing Pan-European Approach Holistic Product Design Homogenous contracts based on highly- correlated benchmarks • Consistent contract design principles – indices and contracts built the same way • Uniform index methodology Market-frie
Slide 14: Unlocking the Potential of the European Derivatives Market
Unlocking the Potential of the European Derivatives Market A modern, efficient pan-European derivatives market designed to expand derivatives trading in Europe Balanced Market Structure New Pan-European Approach Order Flow Holistic Product Design TRANSPARENCY EFFICIENCY SIMPLICITY 14
Slide 15: Launch Timeline
Launch Timeline Timing Milestone July 1 EuroCCP Deal Closed July 2020 Exchange and contract specifications available to Customers Q3 2020 Network connectivity available – Order ports Q4 2020 Certification and platform testing begins First half 2021 Exchange launch with Phase 1 products 2022 Phase 2
Slide 16: Acquisition of EuroCCP and Buildout of Pan-European Derivatives Trading and Clearing
Acquisition of EuroCCP and Buildout of Pan- European Derivatives Trading and Clearing Investing in long-term growth Reaffirmed expected EPS impact for 2020 and 2021, but now expect to be at higher end of range, primarily due to higher than originally projected facility fees for EuroCCP backup credit
Slide 17: Questions & Answers
Cboe’ Global Markets Questions & Answers
Slide 18: Thank You for Joining Us
Thank You for Joining Us 18
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