Hello everyone, thank you for joining us, and welcome to the Cboe Global Markets third-quarter earnings call. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please raise your hand. If you have dialed into today's call, please press star nine to raise your hand and star six to unmute. I will now hand the call over to Ken Hill, Head of Investor Relations. Please go ahead.
Good morning, and thank you for joining us for our third-quarter earnings conference call. On the call today, Craig Donohue, our CEO, will discuss our performance for the quarter and provide an update on our strategic initiatives. Jill Griebenow, our Chief Financial Officer, will then provide an overview of our financial results for the quarter, as well as discuss our 2025 financial outlook. Following their comments, we will open the call to Q&A. Also joining us for Q&A will be Chris Isaacson, our Chief Operating Officer, Prashant Bhatia, our Head of Enterprise Strategy and Corporate Development, and Rob Hocking, our Global Head of Derivatives. I would like to point out this presentation will include the use of slides. We will be showing the slides and providing commentary on each. A downloadable copy of the slide presentation is available on the Investor Relations portion of the website.
During our remarks, we will make some forward-looking statements, which represent our current judgment on what the future may hold. While we believe these judgments are reasonable, these forward-looking statements are not guarantees of future performance and involve certain assumptions, risks, and uncertainties. Actual outcomes and results may differ materially from what is expressed or implied in any forward-looking statements. Please refer to our filing with the SEC for a full discussion of the factors that may affect any forward-looking statements. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise, after this conference call. During the call this morning, we will be referring to non-GAAP measures as defined and reconciled in our earnings materials. Now, I'd like to turn the call over to Craig.
Good morning. Thank you for joining us today to discuss our third-quarter results. Our performance this quarter underscores how Cboe Global Markets is operating from a position of strength, a result of our world-class products, platforms, and people. We're building on that momentum and sharpening our strategic focus, designed to unlock even greater value and opportunities for growth. Following the conclusion of a rigorous review of our businesses, we will initiate a sales process for our Cboe Australia and Cboe Canada businesses. We will discontinue our U.S. and European corporate listings efforts, and we will reduce our costs related to our U.S. and European ETP listings businesses, Cboe Europe Derivatives Exchange, and several of our smaller risk and market analytics businesses. This strategic realignment ensures Cboe Global Markets is well-positioned in a dynamic and evolving market and strengthens our long-term vision to be a global derivatives leader.
These changes will be accretive to earnings, and Jill will discuss in her prepared remarks how these actions strengthen our financial position and unlock new growth opportunities. I'd like to express our deep appreciation to all our team members for their dedication and hard work in supporting each of these businesses. While our Australian and Canadian equities businesses are performing well, we've determined that they fall outside of our core focus and strategy. We are grateful to our regulators in Australia and Canada for the support and collaboration they have shown us, and we will work closely with them to ensure a smooth transition for all of our key stakeholders. With this renewed focus, we are directing greater attention to our core businesses, which are operating from a position of strength. We see tremendous opportunities across index and multi-listed options, futures, U.S.
and European equities, and FX, inclusive of Data Vantage. Leveraging these core areas of strength for Cboe Global Markets and the strong secular growth trends supporting them, we believe we are well-positioned to fully capture their growth and earnings potential as we strengthen our competitive positioning. Turning now to the third quarter, Cboe Global Markets grew net revenue 14% year over year to a record $605.5 million, and adjusted diluted EPS increased a robust 20% to a record $2.67. These results were again driven by strong volumes in both our multi-listed and proprietary index option products, solid new sales growth in our Cboe Data Vantage business. Robust industry volumes in our cash and spot markets, and continued strong expense discipline. Most importantly, our performance once again underscored the durability of our net revenue generation, with strength evident across nearly every segment of our business.
In fact, in the third quarter, all three of our revenue categories—derivatives markets, cash and spot markets, and Data Vantage—hosted double-digit net revenue growth. As we head into the final months of the year, we look forward to building on those broad-based trends. Taking a closer look at the third-quarter trends by category, our derivatives franchise delivered another record quarter, with net revenue increasing 15% year- over- year. In our multi-list options business, net transaction and clearing fees revenue was up a solid 14%, given higher industry volumes and positive market share trends. While the multi-list options space remains highly competitive, Cboe Global Markets is well-positioned to benefit from strong secular trends, having taken meaningful steps to deepen our talent pool in the options space while actively pursuing thoughtful regulatory reforms that support both the industry and investors.
On the index options side, net transaction and clearing fees revenue was up a strong 19% as our proprietary SPX options complex set new records, powered by robust growth in zero-DTE options trading. SPX zero-DTE average daily volume surged 62% year- over year, while overall SPX ADV increased 26% to a record 3.9 million contracts. Zero-DTE options made up over 61% of SPX volumes, up from a 48% share a year ago. We saw a similar dynamic in mini SPX options, where zero-DTE ADV more than doubled over the past year and drove an impressive 66% increase in total ADV during the quarter. Zero-DTE options now make up roughly half of mini SPX volume, up from 35% a year ago.
In our proprietary options business, it's noteworthy that nine of the ten highest average daily volume months occurred in 2023, with September ranking as the third highest month on record, only behind March and October month-to-date activity. In fact, our largest SPX day on record occurred on October 10th, with 6.4 million SPX contracts traded and a record 33.2 million total options contracts traded across our index and multi-list products. It's also worth noting the growth in our zero-DTE options franchise reflects not only wider adoption and broader access, but it's also a result of Cboe's distinct advantages in product innovation, contract design, and market structure.
We look forward to leaning into these advantages with our new MAG 10 index options and futures launch, subject to regulatory approval, giving investors a simpler way to gain exposure to the AI and tech theme, and a more precise way to manage risk using cash-settled European-style options. While SPX volumes in the third quarter were robust, our VIX products faced a more stable macro backdrop and lower realized volatility. The continued growth in our index options, despite the lower activity in our VIX complex, highlights the strength and versatility of Cboe's comprehensive volatility toolkit. Looking ahead, we remain positive on the outlook for our core derivatives business. With trade tensions, a government shutdown, and more uncertain economic outlook, we see investors continuing to utilize options to manage risk. Secular trends of increasing retail participation and international expansion should provide further tailwinds.
We continue to onboard more international brokers as global customers seek exposure to U.S. financial markets. Moving to cash and spot markets, net revenue was up a strong 14% as our European cash equities business continued to drive robust performance for the category. Led by another quarter of strength in our European transaction businesses, the Europe and Asia-Pacific segment delivered the strongest year-over-year net revenue percentage growth of any Cboe segment for the fifth quarter in a row, achieving an impressive 24% increase. This was driven by a 35% year-over-year growth in net transaction and clearing fees, resulting from strong industry volumes, solid market share gains, and a higher net capture. Global FX also made another solid contribution, growing net revenue 13% year-over-year in Q3.
Over a longer time horizon, FX has delivered quarterly, year-over-year net revenue growth in 17 of the last 18 quarters, speaking to the durability of this segment's revenue generation. Turning to Data Vantage, net revenue increased by 12% on a year-over-year basis, reflecting continued momentum across our platform. Notably, nearly 90% of the growth across our market data and access businesses was driven by new unit and new sales as opposed to pricing. This growth speaks to the sizable demand for Cboe Global Markets' data and access products, including our newer offerings, dedicated cores, and timestamping. Now, I'll turn the call over to Jill to walk through the details of our financials and guidance for the quarter.
Thanks, Craig. Cboe posted another strong quarter with adjusted diluted EPS of 20% on a year-over-year basis to $2.67. I will provide some high-level takeaways from this quarter's operating results before going through segment results. Net revenue increased 14% versus the third quarter of 2024 to finish at a record $605.5 million, with each of our categories producing healthy year-over-year growth. Specifically, derivatives markets' net revenues grew 15%. Data Vantage net revenues grew 12%, and cash and spot markets' net revenues grew 14%. Adjusted operating expenses of $210 million were up 3% on a year-over-year basis. Adjusted operating EBITDA of $409 million grew 21%, and adjusted operating EBITDA margin expanded by 3.8 percentage points to 67.5% versus the third quarter of 2024, demonstrating both our strong business performance and disciplined expense management.
Turning to the key drivers by segment, our press release and the appendix of our slide deck include information detailing the key metrics for our business segments, so I'll provide some highlights for each. The options segment delivered its fifth consecutive quarter of record net revenue with 19% year-over-year growth. Cboe total options ADV was up 26%, with a 15% increase in index options volume and a 31% increase in multi-listed options volume. North American equities net revenue increased 6% on a year-over-year basis. Access and capacity fees increased 10% as compared to the third quarter of 2024. Stronger industry volumes helped temper softer net capture and market share in our transaction net revenues. Europe and APAC produced 24% year-over-year net revenue growth, reflecting another quarter of strong growth in Europe. Net transaction and clearing fees for the segment were up 35%, while non-transaction revenues were up a combined 14%.
Futures net revenue decreased 22% from the third quarter of 2024, primarily due to lower volumes. Finally, global FX net revenue was up 13% on a year-over-year basis, driven by a 3% increase in average daily notional value and a 9% increase in net capture. Looking at our Cboe Data Vantage business, net revenues were up 12% on an organic basis in the third quarter. Building on the solid year-to-date trends, revenue growth was again driven by strong new subscription and unit sales. New sales represented nearly 90% of market data and access solutions revenue growth in the quarter, with the remainder coming from pricing changes. As Craig discussed, we are encouraged by the sales momentum occurring across our new product offerings. Turning to expenses, total adjusted operating expenses were $210 million for the quarter and up 3% on a year-over-year basis.
The increase was primarily driven by higher compensation and benefits expense as a result of our strong revenue trends, which have increased our bonus incentive accrual. Before moving to our 2025 guidance updates, I would like to discuss the anticipated financial impact of the business decisions announced earlier this morning. While we are still working through these changes with our key stakeholders, we do not anticipate that these actions will have a material impact on our 2025 total organic net revenue growth or our 2025 adjusted operating expenses, and they are fully captured in our updated guidance.
On a go-forward basis, we expect the annualized run rate impact of both today's announcements and the completed wind-down of our Japanese equities business to be accretive to our earnings, resulting in roughly a 3% reduction in net revenue and an 8%- 10% reduction in adjusted operating expenses, using the 2025 guided ranges as a baseline. That being said, realizing the full impact of the actions will take time as we work through the various realignment actions and sales processes. We will look to provide a more fulsome progress update to help calibrate the timing of various impacts when we announce our 2026 guidance during fourth quarter earnings in February. Moving to our full year 2025 guidance, we are increasing our full year total organic net revenue growth guidance range to low double digit to mid-teens from high single digit, given our strong year-to-date results and fourth quarter trends.
We are increasing our Data Vantage organic net revenue growth range to high single digit to low double digit from mid to high single digit, following stronger than expected year-to-date growth. We are lowering our full year adjusted operating expense guidance range to $827 million- $842 million from $832 million to $847 million. This decrease reflects our year-to-date operating discipline as well as reduced expectations for depreciation and amortization expenses, partially offset by higher incentive compensation, given our healthy revenue generation. We are lowering our full year guidance range for CapEx to $73 millio- $83 million from $75 million to $85 million, and we are also lowering our expectation for depreciation and amortization to $50 million- $54 million from $53 million to $57 million.
We continue to expect the effective tax rate on adjusted earnings under the current tax laws to come in at 28.5%- 30.5% for the full year. While we don't provide formal guidance on interest income or interest expense, we expect that interest expense, net of interest income, will be approximately $3 million in the fourth quarter. On the capital front, our adjusted cash position of $1.5 billion and leverage ratio of 1.0 times demonstrate our healthy balance sheet. In addition, Moody's recently upgraded our credit rating by one notch to A2, reflecting the strength of our financial profile. In the third quarter, we returned $76 million to shareholders in the form of a $0.72 dividend, representing a 14% YoY increase in our quarterly dividend.
Turning to our investment in the Seven Ridge Fund Holding Trading Technologies, the transaction detailed in last quarter's earnings call is expected to close in the fourth quarter of 2025, subject to regulatory approval. As of September 30th, 2025, the carrying value of the investment reflects assumptions, including the agreed sales price related to the estimated fair value of Trading Technologies. A gain of $45.6 million is included in our earnings on investments for the third quarter, but the impact has been adjusted out of our non-GAAP income statement. In the fourth quarter, we anticipate recognizing an incremental gain upon the final closure of the transaction. Similar to the third quarter, we will adjust the gain out of our non-GAAP income statement. As an organization, we are focused on optimizing capital deployment to strike the right balance between margin efficiency and investment in emerging growth trends following our review.
While the decision process to strategically realign our business portfolio is complete, our commitment to continuously assessing new opportunities and optimizing our businesses will be unwavering. We will maintain a disciplined approach to assessing all aspects of our business, with a clear emphasis on driving revenue growth and enhancing profitability to maximize shareholder returns. Now, I'd like to turn it back over to Craig for some closing comments before we open it up to Q&A.
Thank you, Jill. As Jill highlighted, our business is operating from a position of exceptional strength, and we now have a clear path to unlock even greater value. The strategic realignment of our business portfolio and human capital allows us to focus on optimizing our core businesses for further growth and profitability and pursue opportunities in emerging growth areas. While we continue to undergo change, our continued success makes us a destination for talent. The realignment and focus on growth allows us to continue to build senior leadership talent across the organization. In the past six months, we have made key hires in strategy and corporate development, global derivatives, clearing, and Data Vantage. Yesterday, we announced another key hire as we welcome J.J. Kinahan as Head of Retail Expansion and Alternative Investment Products. J.J.
is a well-regarded industry veteran in the retail brokerage space with deep expertise in equity derivatives markets. He brings a wealth of experience to the Cboe Global Markets management team, and I look forward to working closely with him and Rob as we pursue new growth opportunities in the retail-oriented digital, crypto, and event contract space. We have made meaningful progress over the last six months, and we have a great deal more to do. I am energized by the momentum at the organization and excited to channel what we've learned into driving transformative change. I'll now turn the call over to Ken for Q&A.
At this point, we'd be happy to take questions. We ask that you please limit your questions to one per person to allow time to get to everyone. Feel free to get back in the queue, and if time permits, we'll take a second question.
If you would like to ask a question at this time, please raise your hand. If you have dialed into today's call, please press star nine to raise your hand and ensure you press star six to unmute yourself. Please stand by while we compile the Q&A roster. Your first question comes from the line of Patrick Moley with Piper Sandler. Patrick, please go ahead.
Yes, good morning. Thanks for taking the question. I thought maybe we'd start off, Craig, if you wouldn't mind, just maybe talk about some of the decisions made today as a result of the comprehensive review process, why Cboe Australia and Cboe Canada. Why did you decide to initiate a sales process there? As we think about the proceeds that you'll receive from those transactions and some of the expenses that'll be freed up, what specific areas of the business are you looking to kind of deploy that capital into?
Thank you, Patrick. Happy to address that. Obviously, as you've heard us comment before, the review process is something that began under my predecessor, Fredric Tomczyk. That process continued. My goal since joining Cboe Global Markets has been to try to accelerate that process and reach a conclusion. Essentially, what I've been focused on and the team has been focused on is trying to pivot people toward the largest growth opportunities that we have among all the available choices. Obviously, we feel like we've done a very good job in Australia and Canada, but at the same time, our best opportunities for growth are in our current large core businesses that are hugely successful, where we've got a critical mass of successful markets, products, liquidity, and customers.
Some of our core businesses are ones that are performing extraordinarily well, and others are such that we know that we've got further growth opportunities within those core businesses, and we also have further opportunities to optimize for greater profitability in each of those businesses. From a human capital perspective, I want to make sure that we're all focused on really the largest growth opportunities that we have in our current core business. That's what you'll hear us talking about in terms of optimizing the core. At the same time, there's a lot of emerging growth trends in the industry that I feel align really well with our core capabilities. We're really starting to shift, as we've described during the call and as Jill Griebenow commented on, toward those new emerging growth opportunities. I want to make sure that we're focused on event and prediction markets, digital and crypto markets.
There's extraordinary growth there. I think they align well with our core capabilities in terms of what we've been able to achieve with the retail segment. Those are largely, at this point, retail-oriented product opportunities. I'd like to think that we've been an innovator in shorter-dated contracts through zero-DTE, and event and prediction is really just sort of coming at it from a different way. That's something that we have demonstrable expertise and success in. As you'll recall, we were also an early participant in digital markets. We still have a lot of our core capabilities in that area. Those are things that I want to make sure that we are focused on. I'll let Jill Griebenow comment on reinvestment of capital, but most of what we are focused on is going to be kind of low capital intensity in terms of further investment in the business.
What I'm primarily focused on is the reallocation and reinvestment of our human capital. It does free up opportunities for us to make sure that where we do need to invest capital in those new growth opportunities, we have the agility and the ability to move quickly and do that.
Yeah, so just a couple of words on the reinvestment or the proceeds, the investment. I will say, from an organic growth perspective, we have the flexibility to make investments into some of the areas that Craig mentioned. As it stands now, we wouldn't expect those to be material. We will come back in February with our 2026 guidance, but really what this affords us is just incremental flexibility, the ability to invest where it makes sense, and then to Craig's point on the strategic allocation of human capital as well to these higher growth areas.
Your next question comes from the line of Eli Abboud with Bank of America. Please go ahead.
Good morning. Thanks for taking the question. Can you help us understand the drivers behind the stronger outlook for your Data Vantage business? The past couple of years, it's been a high single-digit grower. What has changed that's going to allow you to get north of that? Do you expect you can hit that target even in years when volumes and capacity fees are down?
Good morning, Eli. Thanks for the question. This is Chris Isaacson. We've seen above-expectations uptake in some new products we rolled out in the last year and a half: the dedicated core versus timestamping service. Customers continue to demand that. Each of them has their own adoption curve. We've seen really strong growth throughout 2025, as well as data products outside the U.S. For instance, 85% of Cboe Global Cloud growth has come from outside the U.S. That's what's contributed this year, and I can hand it to Jill about what we see in the look forward.
Yeah, we've seen some outperformance in 2025. Really pleased with the results there. As I commented in my prepared remarks, about 90% of that incremental revenue has come from new units, new sales, and about 10% of that from pricing. We are pleased with the 2025 results that we've had to date, the outlook for Q4. What I will say is different products have different adoption curves. This has been a good grower for us. What we will do is take a look and reassess our guidance. We'll come back in February with our update on the 2026 outlook.
Your next question comes from the line of Brian Bedell with Deutsche Bank. Brian, please go ahead.
Great. Thanks, everyone. Can you hear me okay?
Yes.
Great. Good morning. Thanks for taking my question. Maybe just to focus in on the retail strategy. J.J.'s game plan for maybe just sort of expand more on how you might be doing this differently, the connection with other brokers, online brokers, the potential white space that you have there, because I know you're already connected with a lot of retail participants. If you can talk a little bit more about the prediction markets, how that weaves into the retail strategy, what's the timing of when you think you might start to launch event contracts? I don't know if there's any view on pricing of those yet.
Yeah. Hi, Brian. Prashant here. Just real quick on prediction markets. We see broad-based interest in prediction markets. We think it aligns well with a cross-section of secular trends, increased retail participation, the appetite for short-dated options, and again, smaller contract sizes, dollar-sized contracts, really the ultimate mini contract. We want to leverage our strengths and provide industry participants there with a neutral infrastructure platform. We're thinking both on the exchange side and on the clearing side. We think there's an opportunity there. You can expect our focus will be on financial and economic-related contracts when it comes to those products. We're crafting a go-to-market plan, and we'll provide you with updates there as we make progress. Yes, event prediction markets, clearly an area of interest for us. I think we've got an offering that could benefit the marketplace.
Yeah. I would add, I'll just jump in, maybe giving a little more background on why we think we have the right to win in that space. Options have always been centered around forecasting future market volatility, whether direction, timing of events. You could actually say we've been in the prediction business since we started in 1973. Further, a lot of this was the basis for creating products like the VIX Index. The VIX is a real-time measure of the market's expectation of a trading range of the S&P 500 over the next 30 days. Its predictive nature is really what's driven it to become one of the most watched equity market benchmarks in the world. With options, every strike expiration embeds the market consensus on where that underlying could be at any specific point in time.
That's why we're so excited about the space and believe with the decades of experience we have, investments in infrastructure, along with really, most importantly, the community of market participants already active in doing business on Cboe, that this is a tremendous opportunity. Now, specifically, when I think of the liquidity-providing community and really the tangential nature of the event prediction market, we're excited to work with those core partners and tap into the vast amount of liquidity that they provide each and every day. To put that in perspective, an average of about $18 billion in premium trades each day in SPX options. That event and prediction market year-to-date in similar products is less than $50 million in premium. If we do this correctly, we're really bringing these liquidity pools to that event and prediction space, which gives us a real unique opportunity to enter it and to grow.
On the retail side, you mentioned that we've led that charge. You've heard it already about the ultra short-dated options, the growth of that retail participation. In many ways, we view the event and prediction market as kind of an introductory product to help those investors in that journey to understanding more complex and more complex products. You start with stocks, you move to kind of binary yes/no products, and then ultimately, you bring them into options and kind of the continuous spectrum of probabilities that they can work with. This is a process and really a formula we pioneered. By offering the right products, education, that's another real important one. You may have heard we just launched our OI Learning Management portal, which allows individual retail investors to expand and better understand these products. Through all of these efforts, obviously, hiring J.J.
was a big one with regards to four-plus decades of retail experience and how to reach that market and understand that market and what that user and investor wants to see on our platform is crucial. We really think we can build that long-term user base for Cboe.
Your next question comes from the line of Chris Allen with Citi. Chris, please go ahead.
Yeah. Morning, everyone. Thanks for taking my question. I'd love to hear your thoughts on the strategic realignment, particularly the sales of overseas, the international businesses, and how that fits with the international strategy for the data business, where clearly you're seeing good progress. Just love to hear. If I remember correctly, some of the deals that were done, they were done to expand global footprint to drive data sales. Now you're pulling back to help us think about that strategy moving forward.
Yeah. Thanks, Chris. When we went through the process to evaluate our portfolio of businesses, we looked at each of these businesses from a strategic lens, from a financial lens, and from a growth potential lens. When it came down to our Australia and Canadian businesses, they both performed quite well. We simply determined that we had better opportunities to drive meaningful growth for Cboe Global Markets in other areas. That's why we decided to pursue a sale there. When you talk about some of the linkages to data, these are core local market platforms in the Canadian market and the Australian market. In terms of our data, a lot of our data sales aren't really driven by having a local exchange presence. We see an enormous amount of demand for our data throughout APAC.
We've added salespeople and marketing resources in those regions, and it really drives a lot of access from clients overseas. When you look at the connectivity we have with APAC brokers and how we continue to grow that, there's an enormous demand around the secular trend of flows with the U.S. being a destination. We don't think it's going to have an impact from that perspective at all. These were more local market exchanges that are performing well. We made the decision really driven by where we find the biggest growth opportunities going forward so we can drive focus there.
A reminder, if you would like to ask a question, please raise your hand now. If you have dialed into today's call, please press star nine on your telephone keypad to raise your hand and star six to unmute. Your next question comes from the line of Anthony Corbin with Goldman Sachs. Anthony, please go ahead.
Hey, good morning. This is Anthony Corbin for Alex Kramm. Maybe just on prediction markets, how are you thinking about M&A versus a less capital-intensive partnership? Do you see any risk of cannibalization to your existing short-dated product suite?
I think we're looking at this as an organic opportunity, leveraging a lot of the key strengths that both Rob and Krishan have commented on. Obviously, we'll always look at inorganic opportunities if they make sense. The primary focus that we have right now is a launch plan that's focused on organic efforts.
Your next question comes from the line of Ashish Sabadra with RBC. A reminder to please press star six on your telephone keypad to unmute.
Hi. Thanks for taking my question. I just wanted to follow up on the earlier question. As you think completed your strategic review, how are you thinking about organic investments going forward, but also inorganic investment broadly across all the spaces, including the Data Vantage space? Thank you.
Yeah. I'll start. Jill and others may want to comment too. We do see opportunities for continued investment in our core businesses. Obviously, with the focus on adding scale in derivatives generally, event and prediction markets, retail-oriented digital and crypto products, there are opportunities for us to invest further in our clearing capabilities, both in Europe and also in the U.S. There are also investment opportunities for us in terms of developing on-chain capabilities as well as migrating increasingly toward atomized settlement capabilities that will further extend our products and reach beyond our traditional trading hours. Those are some of the kinds of things that we would be looking at. Obviously, we also have a very successful and growing business in both index options and in multi-list. There are also investment opportunities there, especially in multi-list, in terms of how we can better facilitate more liquidity and more trading volume.
There's a range of things that we will be focused on in terms of investment. That's a big part, as I said, of this whole strategic pivot, really making sure that we're extracting as much growth and profitability as we can, not only from our current core businesses, but from these other areas that we'd like to pivot and shift to.
We have a follow-up question from Eli Aboud of Bank of America. Eli, please go ahead.
Thanks for taking the follow-up. You highlighted how Data Vantage revenue growth is being disproportionately driven by international unit sales. In past calls, I think you've said about 50% of the incremental growth comes from international. I was hoping you could break that down a little bit further. How are international users consuming your data? Is the growth concentrated in one particular channel? How do we square your outsized international data growth with the fact that global trading hours are still a relatively small part of your total volumes?
Yeah. I'd say a couple of things on Data Vantage. In terms of the growth we're seeing overseas, it's absolutely driven by a lot of our appetite for data, our U.S. proprietary market data, and we're seeing high demand for that. In terms of global trading hours, it's not as correlated, the data sales there, as to GTH volumes. We're not seeing a high correlation there. The demand is coming, and they are trading within the 24-by-5, 24-hour, 5-day windows that we have. We're seeing good demand and appetite there. When you look across the Data Vantage platform, we're not only seeing growth on the data side, we're seeing growth on the index side, we're seeing growth in our risk and market analytics platforms as well. It's pretty broad-based growth. With any kind of sales-oriented business, you end up with some variability quarter- to- quarter depending on when sales hit.
This was just a particularly strong quarter for us. We continue to think we're well-positioned going forward. Good story there, and all that growth is really organically driven.
To put a finer point on the GTH hours point and how that doesn't tell the full story, given the larger liquidity pools in our regular trading hours session, a lot of international participants that are still buying the data and need the data for trading are trading during those regular trading hours sessions as well. I think we're using that from the stance of you continue to build the liquidity pools. We have them in the regular hours, and we continue to build them in the global trading hours session. You start to see some of that flow migrate to more, I would say, call it on-hours trading for the international clients. I just want to be clear, a lot of those trading in the international space are doing it during the regular trading hours.
Eli, I might just finish here with our goal here is to get our data as close to customers in whatever format or mechanism that works best for them. We have added Cboe Global Cloud. We will get our partnerships where we need to. As Krishan mentioned, the real demand is coming for U.S. data from around the world. Wherever we interact with customers, they want access to the U.S. markets in our bellwether products. Our goal is to get them that data in whatever format works for them. That is where we are seeing the growth.
Your next question comes from the line of Ben Budish with Barclays. Ben, a reminder to press Star 6 on your telephone keypad to unmute your line. Ben, a reminder to press star six on your telephone keypad to unmute your line.
Hi. Good morning. Sorry about that. Thanks for taking the question. Wanted to ask a higher-level question about AI. It's something we've heard a lot about from some of your exchange peers this earnings cycle. Just wondering if you could share any high-level thoughts. How might that help you in terms of new data and analytics products? How do you think about potential to increase efficiency in your operations? I think your margins are already quite high. How are you thinking about opportunities either on the product side or internally to employ more or deploy more AI capabilities? Thank you.
Yeah. I'm glad to take that one. Sorry, got something in my throat. Good morning. Thanks for the question. Yeah. Obviously, AI is all over the news and outside of our industry, but also within our industry. AI has been a journey for us, and we've made significant investments in AI. It's primarily been a productivity multiplier across all of our functions, from sales, legal, HR, finance, infrastructure, to software engineering, security, business intelligence. It's basically touching every part of our business internally. It's embedded in our data platform so we can surface insights for both us and our customers. It's really underpinned by our data strategy. What we've heard about is talked about. We've been public about having our data platform running on Snowflake on AWS, and that underpins our AI strategy.
We're finding use in it for the product development life cycle, especially with the unique data sets that we have, so we can ideate new products. We stood up a center of excellence in mid-2024, and that's not just for software engineering, but it's for company-wide resources too. We make sure we're getting adoption across the enterprise, and now we have 900 active associates working on that. We're in the age of agentic AI. We've deployed multiple agents across our enterprise, including in areas such as infrastructure and information security. We're really focused on building infrastructure with an AI platform internally, but also in educating all of our associates. It's been primarily internally focused, but now we're turning toward what products we can commercialize based on the insights that AI gives us.
We also have a fun program internally called the AI Olympics and AI Champions, and the winners of the Olympics, we then go implement those projects because they're delivering great value for us. We are frankly all in on AI because we think it has tremendous power to unlock greater productivity. We've heard a lot on this call about human capital, and we have great people here. We want to make sure that we fully leverage those great people.
A reminder again, if you would like to ask a question, please raise your hand. If you have dialed into today's call, please press star nine to raise your hand. When it is your turn, please press star six on your telephone keypad to unmute your line. We will now move to Kyle Voigt of KBW. Kyle, a reminder to press star six on your telephone keypad to unmute your line.
Hey, good morning, everyone. You noted opportunities in the multi-listed options market multiple times today on the call. I don't want to say that multi-listed hasn't been a priority for Cboe Global Markets, but maybe it seems like it's going to be more of a focus of investment for Cboe Global Markets moving forward. As you noted, it's a very competitive space. Just wondering what you think you could do differently in that market versus the way Cboe Global Markets has looked at and addressed that market over the past several years.
Yeah. Thanks, Kyle. I appreciate the question. We're really excited about the multi-list space and the revenue opportunities we see going forward. As you mentioned, multi-list is core to Cboe, and it's an area we're going to be heavily focused on competing in. Industry volumes are up 20% year- over- year. Retail is driving much of that growth. Options adoption amongst retail is still in the early innings. We really see plenty of runway ahead. As far as the multi-list landscape, you touched on it. It's highly competitive. In early 2026, I think we'll be up to 20 exchanges in the space. That said, Cboe still commands over 24% of the multi-list market share and is number one in overall industry market share with just under 31%. We feel we're playing from a position of strength. Earlier this year, we made several additions to our U.S. team.
Megan Dugan joined us from NYSE in February. We also added Gary Hunt, longtime industry veteran from Bank of America. Between both of them, they have over 50 years of industry experience in multi-list options. I know I look forward to working with them, and we're going to be focused on increasing our competitiveness. On the functionality side, we're really working on a host of, I would say, market structure and pricing improvements across our different exchange medallions, things like liquidity-adding incentives for market makers, a competitive rebate program for customers bringing flow to Cboe. Ultimately, we feel we're well-positioned to continue to be an industry leader, and we will remain focused on really striking that right balance between maximizing market share and revenue capture.
Kyle, I just might mention you've heard a lot of previous calls when we were deep in the heart of integrations, and we had a lot of, frankly, tech resources focused on integrations. This year, we've really been able to fully focus on our core businesses, as outlined at this call. It's really encouraging to see we have a bigger and fuller derivatives roadmap. A lot of that is around multi-listed options that I've seen in years. We're, again, using that human capital focus on the highest growth opportunities.
Your next question comes from the line of Michael Cyprys with Morgan Stanley. Michael, please go ahead. A reminder to press star six on your telephone keypad to unmute your line.
Hey, good morning, guys. Hopefully, you can hear me okay. Thanks for taking the question. Wanted to ask about AI to your earlier points. I was hoping you could elaborate a little bit on what products might make sense as you look out over the next 12- 24 months, and then also more longer term, how you might see AI helping contribute to revenues at Cboe Global Markets over time.
Yeah, it's a good question. We're going to have a complete answer here with exact products that will come from AI. As I said, our data strategy underpins our AI strategy. I'd say the insights and the products are still yet to come. We do have unique data sets because of the unique products we have, especially our proprietary products. We think new products can come from that. I think one product I'll point out that's not really AI-related, but one-minute open-close product, for instance, regarding SPX, has had great uptake. It's not really an AI product, but it's something that's surprisingly simple, but very, very high demand. We think we can surface more product ideas from AI or outside of AI. We just use it as one of many tools.
Yeah. I would add, as Chris said, we're in the early days, but from a product development standpoint, I think where we've seen the most progress is in research analysis, in being able to go through these data sets faster, quicker, be able to pinpoint things where we see opportunities and need to explore them further. We can then get those opportunities, and we're quicker to then go get in front of clients and float them and see if they're beneficial to their portfolios. That process is starting to speed up for us. I think we're in early days, but it'll continue to build momentum as we go.
Your next question is a follow-up from Brian Bedell from Deutsche Bank. Brian, please go ahead.
Great. Thanks so much for taking my follow-up. Maybe just zooming back out on the global strategic pivot. As we think of what you plan to divest of, should we be thinking of the future global footprint for Cboe Global Markets as largely being U.S. and European-centric? Maybe just comment on your commitment to continuing to have a leading market share in European equities trading. I would have presumed the global strategy is then more coming from the U.S., as you kind of talked about in this call. Just to confirm, Jill, I think you mentioned that the early view of the impact of this financially would be a 3% reduction in revenue, 8%- 10% reduction in OpEx. That would indicate that the businesses you're divesting from were break-even or losing money. I just want to confirm that.
Brian, I'll start and just say that I think what you said is right. I mean, obviously, we have very large and successful businesses that we're operating in, certainly both the U.S. and Europe. You mentioned European cash equities. I mean, we've been really pleased with the growth and the results that we're seeing there. We see between European equities and European clearing a lot of future growth potential and some new ideas that we're working on there. I think the takeaway is that we don't feel that our presence in Australia, Japan, or Canada are really vital to the continued globalization strategy that we have for the firm.
It's really more along the lines of the things that you've heard us been commenting on during the call, which is investor education, sales and marketing in those regions, working with retail brokers throughout Asia-Pacific to give them access to our markets. There's obviously, given the significance of the U.S. market relative to the global market, tremendous demand from institutional as well as retail customers. Our globalization path is going to be along those lines where we see continued growth, continued opportunity. I'll let Jill take the rest of it. Chris, you might want to add something before, Jill.
Yeah. I want to mention our FX business as well, which has been a nice steady grower again this quarter, 13%, I think. If there's any global business, that would be it. It's been an incredible business for us over the years and fairly global in the way we touch customers.
Craig mentioned our super strong position in European equities. I think it's a fifth straight quarter where it's been the highest grower for us. That's great. Market volumes, great market share, great capture, just great competitive positioning there by a European team. We remain very, very global. I also say we're deploying infrastructure where necessary globally to touch those customers so they can come back to the U.S. or other markets. It is a strategic pivot, but we will remain very global. Hand it to Jill now.
Yes. As it relates to the financial piece, just want to clarify that the percentage amounts that we included in today's call relate to the aggregate portfolio or collection of actions. Those figures are not specific to just Canada and Australia together. Further clarification is that those ranges also include the previously disclosed action that we're taking to wind down the Cboe Japan business. When you look at the collection of actions, as mentioned, we expect the impact on overall net revenue from all of these actions taken together to be, let's say, roughly 3% of what our guided 2025 ranges would be. From an operating expense savings, we expect to save somewhere in the amount of 8%- 10%. As we referred to in our prepared remarks, we do expect the collective action of these items to result in accretion to overall earnings. It will take time.
We're in the very early stages of the sales processes of these, also looking, obviously, at some of the enhancements we're looking to make. Overall, we do expect this to be accretive to earnings.
Your next question is a follow-up from Anthony Corbin with Goldman Sachs. Anthony, please go ahead.
Hey, thanks for the follow-up. I wanted to note how you're thinking about the net impact to expense growth over time from the cost savings from today's announcement and Japan wind-down versus the incremental spend needed to support retail expansion and the build-out of prediction markets.
You bet. Obviously, I'm not ready to share 2026 guidance just yet, but I think if you look at the results that we've communicated here, 2025 year to date, where we're looking to land from an updated guidance perspective, what I will say is disciplined expense management continues to be top of mind, but we're also very committed to investing in long-term growth. Again, just on a go-forward basis, we'll share our guidance for 2026 in early February, but we will be committed to striking the right balance between disciplined expense management and the generation of future revenue. Obviously, that takes dollars to invest organically to stem that, but we will be very, very disciplined in, again, just maintaining disciplined expense growth rates going forward.
Your next question is a follow-up from Ben Budish of Barclays. Ben, please go ahead.
Hi. Thank you for taking my follow-up. I was wondering if you could talk a little bit about your expectations for expanding trading hours. I think there was a press release from maybe a week or two ago about looking to add a morning session, I think starting at 7:30 A.M. and expanding the afternoon to 4:15 P.M. Just curious, I think the release said you expect this would be a meaningful step on the way towards 24/5, but those hours in particular would capture a lot of other sort of economic data releases. Just curious, with that in mind, based on what you see historically, how do you think about capturing that time might impact your SPX options volumes in particular?
Yeah. Thanks, Ben. I'll start out. Maybe Chris can add something if you'd like. As you referenced, on October 20th, Bloomberg reported on our filing with the SEC to add additional hours for U.S. equity options outside the normal 9:30 A.M- 4:00 P.M. Eastern Time regular trading session. If approved, we would be adding a morning session from 7:30 A.M- 9:25 A.M. Eastern Time and a post-close session from 4:00 P.M- 4:15 P.M. Additionally, our plan is to start with, call it roughly 25 names that represent the highest market cap, the most liquid names across the underlying options and equities. As you mentioned, this is in response to the surge that we've seen in equity option volumes and just the generalized industry push towards 24 by 5 trading.
We feel it's a good first step, and it really begins to acclimate investors to that off-hours trading session. It also accounts for where we see the majority of volume in our current GTH session. Without stressing the liquidity providers, having the staff provide liquidity in kind of the less active overnight hours, we see the majority of our volume trading, call it about two hours before the regular market opens. Lastly, this is just an evolution. It's a good next step in single-name option trading. As the industry continues to assess the risks associated with introducing even daily expiries in single names and so forth, we think it's generally just a good practice to introduce new functionality in stages, and this just seemed like a really good first stage.
Just a follow-up there with it. It's just one of many products that will be trading with more expanded trading hours, as Rob has mentioned. We already trade SPX options and VIX options, 23 by 5, almost 24 by 5. VIX futures are FX products. We trade U.S. equities from 4:00 A.M. to 8:00 P.M. The theme of 24 by 5 and eventually 24 by 7 is going to be a multi-year theme. We'll add products, again, as the industry's ready in the case of single-stock options in the U.S. As soon as the industry's ready, we want to be there and leading as an innovator as we have all long-term options.
Your next question comes from the line of Michael Cyprys from Morgan Stanley with a follow-up. Michael, please go ahead. A reminder to press star six to unmute.
Thanks for taking the follow-up. Just wanted to ask about prediction markets and crypto. I was hoping you could elaborate on your aspirations there. What steps might you be taking over the next 12 to 24 months? How do you see this contributing to Cboe Global Markets over the next couple of years? To what extent might inorganic steps help accelerate the timeframe to scale? How are you thinking about that?
Yeah. I think in terms of prediction markets, we're going to start with what we would call financial and economic contracts. Digital is definitely something we'll explore. There's a lot of demand and activity there as well. We will look at that. As Craig said earlier, our view is we've got the capability, we've got the exchange platforms, we've got the clearing platforms. A lot of this build-out initially will be organic, so we're not focused as much on acquiring things like that. Obviously, there'll be partnerships involved. Think about the retail client base and the demand we're seeing there. We'll look to establish partnerships with retail platforms that want an industry utility-type platform. When we think broadly around things like M&A, not relatively related to the prediction markets, we're always interested in looking for businesses that have compelling strategic and financial rationale.
There's nothing we need to do there today, but we're always open to that. You've heard Jill talk about how strong our balance sheet is. We'll just keep our options open.
Yeah. Even more specific, the crypto derivatives and perpetual futures front. Obviously, the market's growing rapidly. We've seen nice growth in our new Bitcoin index options since we've launched them in December of last year. ETF issuers in particular have gravitated towards using these products to introduce many of their options-based strategies. We already have, I think it's at this point, 20 ETFs that are using CBTX and MBTX in their strategies, and we really expect more to come. We're also preparing to launch Bitcoin and Ether continuous futures. These are long-dated futures, cash-settled, designed to provide access to that perpetual style future in a U.S.-regulated environment. The launch obviously has been slowed down a little bit by the government shutdown, but we're hopeful to get them out into the market soon.
We really see this, even crypto events in the U.S., as a greenfield space to leverage our decades of derivatives experience. As I mentioned, a lot of this isn't happening on U.S. soil. That's where we see we can really step in and have an advantage. I'll just reiterate, like I said yesterday. Or not yesterday, but like we announced yesterday. We're really excited to have J.J. coming in. I don't think you can underpin the four decades of experience serving this client base. As he stands up this new vertical, I think be excited about what's more to come.
There are no further questions at this time. I will now hand it back to the management team for closing remarks.
Thank you very much for joining us. I just want to say on behalf of all of us that this is a really exciting time for us. We are happy to be completing the business reviews, making the strategic realignment of the business. I want to thank all the people that have worked so hard to make us successful in these different areas that we've tried to work on, and we look forward to talking with you again next quarter.
This concludes today's call. Thank you for attending. You may now disconnect.