Key insights
- Cboe Global Markets' stock surged 5% following a 25-year extension of its exclusive licensing agreement with S&P Dow Jones Indices for S&P 500 Index (SPX) options, securing the partnership through 2051. This deal ensures Cboe's continued exclusive rights to SPX options trading and opens avenues for new products like tokenized options. The extension provides certainty for customers and positions Cboe for future growth and innovation in index derivatives.
Investing.com -- Cboe Global Markets (Cboe: CBOE) shares rose 5% following the announcement that the company signed a 25-year extension of its exclusive licensing agreement with S&P Dow Jones Indices, continuing their collaboration through 2051.
The extended agreement maintains Cboe’s exclusive rights to offer trading in its flagship S&P 500 Index (SPX) options. The partnership also opens opportunities for innovation beyond traditional index derivatives, including potential new products like tokenized options contracts.
Under the extended agreement, 2026 royalty fee terms will remain unchanged, with updated terms beginning in 2027. Cboe estimates the 2027 royalty fee terms will have a de minimis impact on the company’s 2027 net revenue growth when considered against organic and ecosystem-driven volume growth, pricing optimization opportunities, and continued business execution.
The collaboration between Cboe and S&P DJI began in 1983 with the launch of SPX options. SPX options set a record annual volume of 970.6 million contracts in 2025, with average daily volume of 3.9 million contracts, representing a 25% increase over the prior year and marking the fourth consecutive year of record trading activity.
Cboe CEO Craig Donohue said the extension allows the company to further grow its SPX and VIX franchises while providing certainty and continuity for customers. He noted the agreement gives Cboe significant runway to pursue innovation and stay ahead of evolving investor needs and emerging technologies.
S&P DJI CEO Catherine Clay highlighted that investor demand for exposure to U.S. equities continues to accelerate, and the partnership allows both companies to keep innovating for the next generation of investors.
Cboe stated it believes the extended contract positions the company for growth, with future royalty fee adjustments smaller than the 2027 reset. The company plans to provide more specific 2027 organic total net revenue guidance in February with its fourth quarter earnings.
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