Cboe Global Markets

To power potential to stay ahead of an evolving market by being the most trusted, innovative and inclusive global marketplace.

Cboe Global Markets SWOT Analysis

Updated: October 3, 2025 • 2025-Q4 Analysis

How to Use This Analysis

This analysis for Cboe Global Markets was created using Alignment.io™ methodology - a proven strategic planning system trusted in over 75,000 strategic planning projects. We've designed it as a helpful companion for your team's strategic process, leveraging leading AI models to analyze publicly available data.

While this represents what AI sees from public data, you know your company's true reality. That's why we recommend using Alignment.io and The System of Alignment™ to conduct your strategic planning—using these AI-generated insights as inspiration and reference points to blend with your team's invaluable knowledge.

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The Cboe SWOT Analysis reveals a formidable market leader whose primary strength—its exclusive derivatives franchise—is also a source of vulnerability due to its reliance on transactional volume. The path forward demands aggressive diversification and innovation. Leadership must channel its significant cash flow from options to build equally dominant positions in high-growth arenas like institutional crypto derivatives and AI-driven data analytics. The key strategic challenge is to transform Cboe from a transaction-centric powerhouse into a diversified global market infrastructure and data company. Successfully navigating the regulatory landscape while fending off fierce competition will be critical. The imperative is clear: innovate beyond the core to fortify the future and achieve the company's ambitious global vision.

CME Group Intercontinental Exchange (ICE) Nasdaq Deutsche Börse London Stock Exchange Group

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To power potential to stay ahead of an evolving market by being the most trusted, innovative and inclusive global marketplace.

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Strengths

PRODUCTS: Exclusive VIX/SPX options drive 40%+ of net revenue, a deep moat
DATA: Market data services deliver high-margin, recurring revenue growth
GLOBAL: Presence in N. America, Europe, and APAC enables 24-hour trading
PLATFORM: Integrated multi-asset technology stack improves client efficiency
LIQUIDITY: Deep liquidity pools create strong network effects for traders

Weaknesses

RELIANCE: High dependency on transaction volumes, vulnerable to low volatility
EXPENSES: Rising technology and compensation costs are pressuring margins
INTEGRATION: Complexity in fully harmonizing acquired platforms (e.g., BIDS)
INNOVATION: Pace of new blockbuster product launches outside options is slow
RETAIL: Under-penetrated in direct engagement with the growing retail trader

Opportunities

CRYPTO: Launching regulated crypto derivatives for institutional investors
APAC: Expanding derivatives and data offerings in Japan and Australia
DATA: Growing Cboe Labs to monetize data analytics and insights services
RETAIL: Increased demand from sophisticated retail for options strategies
SUSTAINABILITY: Developing ESG-focused indices and related derivative products

Threats

REGULATION: SEC focus on market structure, PFOF, and options market rules
COMPETITION: Intense fee pressure from ICE, CME, Nasdaq, and new entrants
MACRO: A recession or prolonged low volatility could depress trading volumes
CYBERSECURITY: Constant threat of sophisticated attacks on market infrastructure
DISINTERMEDIATION: Long-term risk from decentralized finance (DeFi) platforms

Key Priorities

GLOBAL: Accelerate global derivatives leadership via APAC/EU product launches
INNOVATION: Deepen competitive moat by launching crypto & data-AI products
DIVERSIFY: Reduce volume dependency by scaling recurring data revenue streams
DEFEND: Proactively mitigate regulatory risks and intense competitive pressure

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Cboe Global Markets OKR

Updated: October 3, 2025 • 2025-Q4 Analysis

This Cboe OKR plan is a masterclass in focused execution. It correctly balances aggressive, forward-looking growth ('GLOBAL DOMINANCE', 'INNOVATE OR DIE') with the pragmatic necessity of strengthening the core business ('RECURRING REVENUE', 'FORTIFY THE CORE'). The key results are specific, measurable, and directly attack the weaknesses and threats identified in the strategic analysis, while seizing the most vital opportunities. This plan provides the clarity and alignment needed for the executive team to translate Cboe's powerful vision into tangible, market-leading outcomes. It is a blueprint for not just competing, but for defining the future of global markets.

CME Group Intercontinental Exchange (ICE) Nasdaq Deutsche Börse London Stock Exchange Group

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To power potential to stay ahead of an evolving market by being the most trusted, innovative and inclusive global marketplace.

GLOBAL DOMINANCE

Win the future of derivatives in every global market.

LAUNCH: 3 new VIX-based derivative products tailored for the APAC region to capture hedging demand.
GROW: Increase European derivatives average daily volume by 15% through strategic client acquisition.
CAPTURE: Achieve a 20% market share in Canadian equities trading on the newly integrated platform.
EXPAND: Onboard 25 new institutional clients to our recently launched digital asset derivatives market.

INNOVATE OR DIE

Create the next generation of indispensable products.

PRODUCTIZE: Launch two new AI-driven data analytics services generating $5M in subscription revenue.
CRYPTO: Finalize and launch options on physically-settled bitcoin and ether futures with 10 market makers.
INDEX: Develop and list futures on 3 new proprietary ESG and thematic indices to meet investor demand.
PARTNER: Secure a strategic partnership with a leading fintech platform to distribute our market data.

RECURRING REVENUE

Build a fortress of predictable, high-margin growth.

GROWTH: Increase Data and Access Solutions net revenue by 18%, outpacing transaction revenue growth.
SCALE: Migrate 50% of Cboe's non-US equities volume to the new unified Cboe tech platform.
BUNDLE: Create three new tiered data and analytics subscription bundles, increasing ARPU by 10%.
EFFICIENCY: Reduce unit transaction processing costs by 5% through infrastructure optimization and AI.

FORTIFY THE CORE

Defend our franchise against all competitive threats.

ENGAGE: Conduct 50 proactive meetings with regulators and policymakers on key market structure rules.
DEFEND: Maintain a minimum 35% market share in US multi-listed equity options amid fee pressure.
RETAIN: Achieve a 98% retention rate among our top 50 institutional clients through enhanced service.
SECURE: Complete two independent, full-scope penetration tests with zero critical vulnerabilities found.

METRICS

Net Revenue Growth Rate: 10% YoY
Adjusted EPS Growth: 12% YoY
Total Options ADV: 15 Million contracts

VALUES

Collaboration
Integrity
Innovation
Inclusivity
Client-Focus

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Cboe Global Markets Retrospective

AI-Powered Insights

Claude

Gemini

GPT

Cboe Q4 2023 and Q1 2024 Earnings Reports and Investor Presentations
Cboe 2023 10-K Filing (SEC EDGAR)
Public statements and interviews by Cboe executives
Competitor analysis of CME Group, ICE, and Nasdaq financial reports
Industry reports from the World Federation of Exchanges (WFE)

CME Group Intercontinental Exchange (ICE) Nasdaq Deutsche Börse London Stock Exchange Group

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To power potential to stay ahead of an evolving market by being the most trusted, innovative and inclusive global marketplace.

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What Went Well

OPTIONS: Record volumes in SPX and VIX options drove strong revenue growth
DATA: Data and Access Solutions revenue continued its double-digit increase
GLOBAL: European derivatives and Cboe Australia showed strong volume growth
CRYPTO: Successful launch of physically-settled crypto futures contracts
MARGINS: Maintained strong adjusted EBITDA margins despite higher expenses

Not So Well

EXPENSES: Compensation and technology costs increased faster than expected
EQUITIES: US cash equities market share remained flat amid intense competition
FX: Spot FX trading volumes were softer due to lower market volatility
GUIDANCE: Forward-looking expense guidance was higher than analyst consensus
INTEGRATION: Ongoing costs and complexity of integrating recent acquisitions

Learnings

DIVERSIFICATION: Non-transaction revenue is critical to offset market lulls
INVESTMENT: Continued investment in technology is essential but costly
PRODUCT: Proprietary products are the key differentiator and profit engine
MACRO: Business performance is still highly correlated to market volatility
GLOBAL: International expansion provides significant, uncorrelated growth

Action Items

COSTS: Implement stricter expense discipline without stifling innovation
DATA: Accelerate the rollout of new data analytics products from Cboe Labs
APAC: Increase marketing and sales focus on new Japan/Australia products
CRYPTO: Expand the institutional client base for new digital asset derivatives
PLATFORM: Complete the final phases of technology platform integration

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Organization	SWOT Analysis	OKR Plan	Top 6	Retrospective

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Cboe Global Markets Market

AI-Powered Insights

Claude

Gemini

GPT

Cboe Q4 2023 and Q1 2024 Earnings Reports and Investor Presentations
Cboe 2023 10-K Filing (SEC EDGAR)
Public statements and interviews by Cboe executives
Competitor analysis of CME Group, ICE, and Nasdaq financial reports
Industry reports from the World Federation of Exchanges (WFE)

Founded: 1973 (Chicago Board Options Exchange)
Market Share: Leading US options exchange (~35-40%)
Customer Base: Institutions, proprietary traders, brokers
Category:
Financial Exchanges
SIC Code: 6231 Security and Commodity Exchanges
NAICS Code: 523210 Securities and Commodity Exchanges
Location: Chicago, Illinois
Zip Code: 60605 Chicago, Illinois
Congressional District: IL-7 CHICAGO
Employees: 1600

Competitors

CME Group Request Analysis

Intercontinental Exchange (ICE) Request Analysis

Nasdaq Request Analysis

Deutsche Börse Request Analysis

London Stock Exchange Group Request Analysis

Products & Services

No products or services data available

Distribution Channels

Cboe Global Markets Business Model Analysis

AI-Powered Insights

Claude

Gemini

GPT

Cboe Q4 2023 and Q1 2024 Earnings Reports and Investor Presentations
Cboe 2023 10-K Filing (SEC EDGAR)
Public statements and interviews by Cboe executives
Competitor analysis of CME Group, ICE, and Nasdaq financial reports
Industry reports from the World Federation of Exchanges (WFE)

Problem

Need for efficient risk transfer/hedging
Demand for price discovery in assets
Requirement for transparent market access

Solution

Listed options and futures contracts
Central limit order books (CLOBs)
Market data feeds and connectivity

Key Metrics

Average Daily Volume (ADV)
Revenue Per Contract (RPC)
Net revenue growth

Unique

Exclusive index licenses (SPX, VIX)
Global multi-asset class offering
Integrated technology and data platform

Advantage

Regulatory licenses and clearinghouse ties
Strong brand equity in volatility trading
Network effects of deep liquidity pools

Channels

Broker-dealer and FCM members
Direct connectivity for trading firms
Extranets and data vendors

Customer Segments

Institutional investors (pensions, funds)
Proprietary trading firms and market makers
Broker-dealers serving retail/institutions

Costs

Employee compensation and benefits
Technology infrastructure and data centers
Regulatory compliance and legal fees

Cboe Global Markets Product Market Fit Analysis

Updated: October 3, 2025

Cboe Global Markets provides financial institutions with a decisive edge through its trusted global marketplace. It delivers unparalleled access to unique products like VIX, enabling precise risk management and alpha generation. This is all powered by a seamless technology platform and deep market insights, allowing clients to confidently navigate the complexities of modern markets and stay ahead of evolving conditions.

ACCESS to unique products and global liquidity.

PRECISION in risk management and alpha generation.

INSIGHT from our comprehensive market data.

Before State

Fragmented liquidity across asset classes
Limited tools to manage portfolio volatility
Opaque risk pricing and hedging instruments

After State

Centralized access to global asset classes
Precise instruments to trade market volatility
Transparent, liquid risk transfer markets

Negative Impacts

Higher trading costs and execution friction
Unhedged exposure to systematic market risk
Inability to express complex market views

Positive Outcomes

Improved capital efficiency and price discovery
Enhanced ability to manage portfolio outcomes
Actionable insights from market data

Key Metrics

Customer Retention Rates - 95%+ for key institutional clients

Net Promoter Score (NPS) - Estimated 45-55 among institutions

User Growth Rate - Varies with market vol, ~5-10% annually

Customer Feedback/Reviews - N/A, institutional focus

Repeat Purchase Rates) - Transactional, near 100% daily usage

Requirements

Robust, low-latency trading technology
Deep, reliable liquidity pools for assets
Trusted regulatory and clearing framework

Why Cboe Global Markets

Operating resilient, regulated exchanges
Innovating proprietary tradable products
Delivering high-quality market data feeds

Cboe Global Markets Competitive Advantage

Exclusive licenses for top index options
Global scale and integrated tech stack
Strong brand equity in options and volatility

Proof Points

Record trading volumes in VIX and SPX options
Consistent growth in data services revenue
Successful expansion into EU, APAC, Canada

Cboe Global Markets Market Positioning

AI-Powered Insights

Claude

Gemini

GPT

Cboe Q4 2023 and Q1 2024 Earnings Reports and Investor Presentations
Cboe 2023 10-K Filing (SEC EDGAR)
Public statements and interviews by Cboe executives
Competitor analysis of CME Group, ICE, and Nasdaq financial reports
Industry reports from the World Federation of Exchanges (WFE)

Strategic pillars derived from our vision-focused SWOT analysis

INNOVATION

Lead in proprietary derivatives and data analytics

GLOBALIZATION

Expand access and products across N. America, EU, APAC

TECHNOLOGY

Deliver a seamless, resilient multi-asset platform

DIVERSIFICATION

Grow non-transactional recurring revenue streams

What You Do

Operates global multi-asset marketplaces

Target Market

Sophisticated global financial participants

Differentiation

Exclusive, proprietary products (VIX, SPX)
Integrated global technology platform

Revenue Streams

Transaction & clearing fees
Market data & access fees

Cboe Global Markets Operations and Technology

AI-Powered Insights

Claude

Gemini

GPT

Cboe Q4 2023 and Q1 2024 Earnings Reports and Investor Presentations
Cboe 2023 10-K Filing (SEC EDGAR)
Public statements and interviews by Cboe executives
Competitor analysis of CME Group, ICE, and Nasdaq financial reports
Industry reports from the World Federation of Exchanges (WFE)

Company Operations

Organizational Structure: Global, business-line matrix structure
Supply Chain: Technology vendors, data centers, networks
Tech Patents: Patents related to market structure/indices
Website: https://www.cboe.com

Top Clients

Board Members

Cboe Global Markets Competitive Forces

Threat of New Entry

LOW: Extremely high barriers to entry due to massive capital requirements, complex technology, and a dense, multi-layered regulatory framework.

Supplier Power

LOW: Key suppliers are technology vendors and data center providers, which are numerous and competitive. Cboe is a large, powerful customer.

Buyer Power

HIGH: Large institutional clients and trading firms have significant leverage, can shift order flow, and constantly demand lower fees and better tech.

Threat of Substitution

MEDIUM: Off-exchange trading venues (dark pools) and, in the long term, decentralized finance (DeFi) platforms offer alternative ways to trade.

Competitive Rivalry

HIGH: Intense rivalry among a few large players (CME, ICE, Nasdaq) on fees, technology, and product innovation. Market share shifts are hard-won.

Analysis of AI Strategy

Updated: October 3, 2025 • 2025-Q4 Analysis

The Cboe AI SWOT Analysis underscores a pivotal opportunity. Cboe's crown jewel is its vast, proprietary dataset—the perfect fuel for generative AI and predictive models. The strategic imperative is to transform this raw data from a byproduct of transactions into a primary AI-driven product. Leadership must foster a culture that attracts and empowers elite AI talent, moving beyond operational enhancements to creating new revenue streams. The greatest risk is not a flaw in execution, but a failure of imagination. Competitors are already deploying AI to redefine market intelligence. Cboe must act decisively to build an AI-first product strategy, ensuring its data advantage translates into durable market leadership for the next decade.

CME Group Intercontinental Exchange (ICE) Nasdaq Deutsche Börse London Stock Exchange Group

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To power potential to stay ahead of an evolving market by being the most trusted, innovative and inclusive global marketplace.

Strengths

DATA: Possesses vast, proprietary, structured market data; ideal for AI/ML
INFRASTRUCTURE: Owns high-performance computing and network infrastructure
SURVEILLANCE: Existing use of AI in market surveillance (Trade-at) provides a base
EXPERTISE: Deep domain expertise in market microstructure to guide AI models

Weaknesses

TALENT: Faces intense competition for elite AI/ML researchers from big tech
CULTURE: Traditional exchange culture may be slower to adopt agile AI dev
LEGACY: Potential for legacy systems to hinder rapid AI model deployment
COSTS: Significant investment required for cutting-edge AI R&D and hardware

Opportunities

PRODUCTS: Create AI-powered predictive analytics and signal services for clients
OPERATIONS: Use AI to optimize exchange operations, latency, and capacity
SURVEILLANCE: Enhance regulatory functions with advanced anomaly detection
CLIENTS: Develop AI tools to help clients with execution strategy and TCA

Threats

COMPETITORS: Rivals like Nasdaq are heavily investing in their own AI platforms
RISK: Potential for AI-driven 'flash crashes' or unforeseen market events
ETHICS: Navigating the ethical and data privacy issues of advanced AI models
DISRUPTION: AI-native fintechs could develop superior, lower-cost solutions

Key Priorities

MONETIZE: Weaponize proprietary data by creating new AI-driven product suites
OPTIMIZE: Deploy AI internally to enhance market surveillance and efficiency
ACQUIRE: Strategically acquire AI talent and technology to accelerate roadmap
GOVERN: Establish a robust AI governance framework to manage model risk

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Cboe Global Markets Financial Performance

AI-Powered Insights

Claude

Gemini

GPT

Cboe Q4 2023 and Q1 2024 Earnings Reports and Investor Presentations
Cboe 2023 10-K Filing (SEC EDGAR)
Public statements and interviews by Cboe executives
Competitor analysis of CME Group, ICE, and Nasdaq financial reports
Industry reports from the World Federation of Exchanges (WFE)

Profit: FY 2023 Net Income: $808.1 Million

Market Cap: $19.5 Billion (as of early 2024)

Stock Performance

Annual Report: Available on Cboe's Investor Relations site

Debt: Long-term debt approx. $1.8 Billion

ROI Impact: Acquisition synergies & new product launches

SWOT Index

Composite strategic assessment with 10-year outlook

/ 100

Market Leader

ICM Index

STRATEGIC ADVISOR ASSESSMENT

Cboe is a dominant Market Leader with a powerful, defensible core in US options. Its Iconic Index reflects a high-ambition vision balanced by significant execution risks from competition and regulation. The growth multiplier is modest, reflecting its position in a mature, albeit growing, market. The primary levers are unlocking the value of its proprietary data through AI and successfully expanding its unique product set into global markets, which is the core focus of the proposed OKR plan.

SWOT Factors

Upside: 80.0 Risk: 76.7

OKR Impact

AI Leverage

Top 3 Strategic Levers

Monetize proprietary data with AI-driven products

Expand VIX/SPX ecosystem into APAC and EU markets

Build a meaningful, regulated digital asset derivatives market

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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