Cboe Global Markets (AMEX:CBOE) shares rose 5% after the company announced a 25-year extension of its exclusive licensing agreement with S&P Dow Jones Indices, continuing the relationship through 2051.
The agreement maintains Cboe’s exclusive rights to offer trading in its S&P 500 Index (SPX) options and provides scope for the companies to develop additional products based on S&P DJI indexes.
Potential areas under consideration include products such as tokenised options contracts, although the supplied information does not provide details or launch dates for any such products.
Royalty Terms to Change From 2027
Royalty fee terms will remain unchanged during 2026, with revised terms taking effect in 2027.
Cboe said it expects the updated 2027 royalty terms to have a de minimis effect on its net revenue growth for that year when considered alongside expected organic and ecosystem-driven volume growth, potential pricing changes and broader business performance.
The company also said future royalty adjustments after the 2027 reset are expected to be smaller.
Cboe plans to provide more specific guidance for organic total net revenue growth in 2027 when it reports fourth-quarter results in February.
SPX Options Recorded 970.6 Million Contracts in 2025
Cboe and S&P DJI began their collaboration in 1983 with the launch of SPX options.
SPX options recorded annual volume of 970.6 million contracts in 2025, with average daily volume reaching 3.9 million contracts.
Annual volume increased 25% from the previous year and marked a fourth consecutive year of record trading activity, according to the supplied information.
Cboe Targets Further Development of SPX and VIX Products
Cboe Chief Executive Craig Donohue said the extended agreement provides continuity for customers and gives the company additional time to develop its SPX and VIX franchises.
He also said the agreement provides Cboe with scope to pursue new products as investor requirements and financial technologies change.
S&P DJI Chief Executive Catherine Clay said demand for exposure to US equities continues to increase and that the extended relationship provides both companies with an opportunity to continue developing products for investors.
The comments regarding future growth and product development represent the companies’ expectations and plans. The supplied material does not provide specific financial forecasts associated with potential new products.
Cboe Global Markets stock price
