© Reuters. FILE PHOTO: People walk by the Chicago Board Options Exchange (CBOE) Global Markets headquarters building in Chicago, Illinois, U.S., September 19, 2018. REUTERS/Michael Hirtzer
(Reuters) – Exchange operator Cboe Global Markets (NYSE:) Inc reported a rise in its third-quarter earnings on Friday, bolstered by higher clearing fees as trading volumes swelled due to investors rejigging portfolios to hedge against risk from frequent price swings.
Cboe, which has a heavy demand for its options products, has seen the segment revenue grow as macroeconomic uncertainty amid recession fears triggered by geopolitical turmoil and rapidly tightening monetary policy pushed investors to drop riskier assets and look for hedging tools.
Its exchanges have also benefited from the resulting price volatility driving up trading volumes across asset classes.
Transaction and clearing fees, the largest component of its revenue, rose 13% to $715.5 million.
The results round out an upbeat quarter for U.S. exchange operators including Nasdaq Inc and NYSE parent Intercontinental Exchange (NYSE:) who benefited from strong trading volumes and robust demand for hedging tools and investment products.
Total revenue in the quarter rose nearly 22% to $993.5 million.
On an adjusted basis, net income rose to $185.2 million, or $1.74 per share, in the quarter ended Sept. 30, from $154.9 million, or $1.45 per share, a year earlier.
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