| | | | | | | May 02, 2025 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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|  | | | | Observations & Insight | | | Craig Donohue Named CEO of Cboe Global Markets
Cboe Picks Leader With The Education, Experience, and Right Fit For The Job
Yesterday, Cboe Global Markets named Craig Donohue, 63, its new CEO starting May 7, 2025, replacing Fred Tomczyk, 69.
To hold the title of CEO of Cboe Global Markets, one must bear the mantle forged by the pioneers who formed the Chicago Board Options Exchange and their forebears who created the Chicago Board of Trade. Craig Donohue has a mind molded by rigorous study, a refined and tempered resolve, and the steely career portfolio to put his mark on the organization.
Donohue checks all the boxes for what I want in a Cboe CEO. He upholds the position's traditions, which will help keep Cboe in Chicago.
There must be something about former high-ranking CME executives that the Cboe likes for its CEO, as Donohue follows former Chicago Mercantile Exchange President William Brodsky in jumping from the MERC to the Cboe. Both are also lawyers, well-educated, and civic leaders.
The Cboe's press release highlighted Donohue's civic leadership, which I believe is an integral part of the job. "He is a past board member and chairman of the Council for Economic Education," the press release said. "He is also a past board member and chairman of the Executives' Club of Chicago and previously served as a director of the Chicago Council on Global Affairs."
His education is pure Chicago, including a Master of Management from Northwestern University's Kellogg Graduate School of Management, a Master of Law in Financial Services Regulation from IIT Chicago-Kent College of Law, a Juris Doctor from The John Marshall Law School, and a Bachelor of Arts in political science and history from Drake University.
Brodsky, who worked together with Donohue for years at the CME, said, "As Chairman of the Options Clearing Corporation, Craig was integral to the explosive growth of the securities options industry. He is a smart, experienced, and highly talented. Craig is well prepared to be a great leader of Cboe."
Donohue replaces Fred Tomczyk, who everyone, including Tomczyk, knew was a short-term solution for the CEO role following Ed Tilly's sudden exit after paying too much for a crypto exchange and other reasons.
Donohue's career portfolio includes having been CEO of CME Group, which bought the Chicago Board of Trade in 2007 for $12 billion. He was also the CEO of CME when it bought NYMEX for $9.4 billion.
Perhaps better than any executive in the industry, Donohue knows how CME Group Chairman and CEO Terry Duffy thinks about making deals and buying an SEC-regulated business.
That gives Cboe the perfect CEO to broker a deal with the CME should the CME come knocking for an acquisition. Or, if Cboe is inclined to stay independent, Donohue would be the right CEO to fend off the anticipated CME moves.
However, Donohue may find connecting with today's workforce more challenging than he did during his previous leadership roles before the pandemic. Since he last served as CEO in 2019, the workplace has undergone significant changes, including shifts in work-life balance, evolving employee expectations, and a new generation of workers whose values and experiences differ markedly from his own. As a result, Donohue's approach, which resonated in the past, may not align well with the current culture and needs of a post-pandemic organization.
But the Craig Donohue I know has shown the ability to learn and adapt. He has great empathy. However things turn out during his tenure, I come into it with great expectations for him to lead a highly profitable, diverse, global organization with a great legacy and a bright future.
OCC appointed Stephen Luparello as chairman of its board of directors, succeeding Craig Donohue. Luparello, a public director on OCC's board and former chair of the Compensation and Performance and Regulatory Committees, will be chair through April 2026. With a distinguished career spanning roles as managing director and general counsel at Citadel Securities, director of the SEC's Division of Trading & Markets, and vice chairman at FINRA, Luparello brings deep regulatory and industry expertise to OCC. ~JJL
| | | | | | Lead Stories | | | Cboe Names Former CME Leader Craig Donohue as Next CEO
Katherine Doherty - Bloomberg
Cboe Global Markets Inc. tapped its rival's former leader, Craig Donohue, to become chief executive officer of one of the largest derivatives exchanges. He will replace Fredric Tomczyk, who has been serving as interim leader of the Chicago-based company, it said in a statement Thursday. Donohue will join the board and take over the chief role effective May 7.
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OCC Names Stephen Luparello as Chairman, Succeeding Craig Donohue
OCC
OCC, the world's largest equity derivatives clearing organization, today announced the appointment of Stephen Luparello as Chairman, succeeding Craig Donohue, who resigned to pursue another career opportunity. Mr. Luparello is a Public Director on OCC's Board of Directors, most recently serving on the Compensation and Performance Committee (Chair) and the Regulatory Committee (Chair). He will serve as Chair for the remainder of Donohue's term, which runs through April 2026.
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Cboe delivers record profit as tariff risks drive hedging rush
Arasu Kannagi Basil - Reuters
Derivatives exchange Cboe Global Markets (CBOE.Z) reported a record first-quarter profit on Friday and boosted its annual revenue growth forecast as tariff news drove up market volatility and fueled strong growth in options trading.
Exchanges thrive during times of market turmoil as trading volumes surge and investors hedge their portfolios to manage risk, driving up transaction and clearing fees for companies such as Cboe.
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Wall Street Fear Gauge Falls as Tariff Worries Ease
George Glover - Barron's
Investors were feeling a little calmer Friday after China signaled it's ready to engage in trade talks with the U.S.
The Cboe Volatility Index, a widely-followed fear gauge that tracks S&P 500 options contracts and trades under the ticker VIX, slipped 2.4% to 24 in early trading. Any reading of above 20 is typically seen as an indicator of heightened uncertainty.
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Charles Schwab CEO says investors are cutting risk after April turmoil
Lananh Nguyen and Suzanne McGee - Reuters
Stock investors have cut risks by selling U.S. equities and buying bonds and non-U.S. shares in response to April's turbulent markets, Charles Schwab CEO Rick Wurster told Reuters.
"We saw clients repositioning themselves, trimming their risk a little bit, making sure they were well-diversified" in response to economic uncertainty, Wurster said in a Reuters NEXT Newsmaker interview on Thursday.
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Bear Market Is Coming With S&P 500 Rally Stalling Soon, DeMark Says
Jess Menton - Bloomberg
US stocks are in for another drop that will eventually lead to a bear market in the coming months, according to veteran technical strategist Tom DeMark, who accurately called this year's top in February and subsequent April low.
DeMark - a closely-followed analyst who's advised billionaire investors including Paul Tudor Jones, Leon Cooperman and Steve Cohen - uses a system for predicting where markets will move, divined from a half century of chart gazing that's based on mathematical relationships. He focuses on trend exhaustion, with his mantra being markets top on good news and bottom on bad news.
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| | | | | | Exchanges | | | Cboe Global Markets names ex-CME chief as new CEO; Individual has previously held CEO positions at the Options and Clearing Corporation (OCC)âEUR¯and CME Group.
Claudia Preece - The Trade
Cboe Global Markets has appointed Craig Donohue as its chief executive officer, effective 7 May 2025. Donohue will also serve on Cboe's board as part of the role. He succeeds Fredric Tomczyk in the role who is set to remain on the board of directors after stepping down as chief executive. "We are thrilled to welcome Craig to Cboe. His visionary leadership, deep experience, industry relationships, and proven track record in global financial markets make him an excellent individual to take the helm as CEO at Cboe," said William Farrow III, chair of the board of Cboe Global Markets.
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Exchange operator Cboe posts record profit on hedging rush
Reuters
Derivatives exchange Cboe Global Markets reported a record first-quarter profit on Friday and boosted its annual revenue growth forecast as heightened market volatility fueled strong growth in options trading. Exchanges thrive during times of market turmoil as trading volumes surge and investors hedge their portfolios to manage risk, driving up transaction and clearing fees for companies such as Cboe. Rivals CME Group and NYSE-parent Intercontinental Exchange also had record-breaking quarters as a barrage of tariff-related headlines and the emergence of Chinese startup DeepSeek's low-cost AI model drove up market volatility. Revenue from Cboe's options trading arm jumped 15% to an all-time high of $352.4 million. Its global FX and Europe and Asia Pacific businesses also fetched record revenue in the quarter.
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NYSE-parent ICE beats first-quarter profit estimates on robust trading volume
Prakhar Srivastava - Reuters
Intercontinental Exchange beat Wall Street estimates for first-quarter profit on Thursday, benefiting from strong trading volumes in energy and options segments. Shares of the New York Stock Exchange parent were up 1.2%. Global commodity and energy markets have experienced significant volatility due to shifting U.S. trade policies and concerns over the war in Ukraine. Exchanges often benefit from such market turmoil, as it typically drives higher overall trading volume.
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Cboe Global Markets Reports Results for First Quarter 2025
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE) today reported financial results for the first quarter of 2025. "In the first quarter, Cboe reported record quarterly net revenue of $565 million, record diluted EPS of $2.37, and record adjusted diluted EPS1 of $2.50, with strong results from each of our Derivatives, Cash and Spot Markets, and Data Vantage categories," said Fredric Tomczyk, Cboe Global Markets Chief Executive Officer. "Following a record 2024, net revenue grew 13 percent, diluted EPS increased 21 percent and adjusted diluted EPS1 increased 16 percent year-over-year in the first quarter of 2025 as investors utilized Cboe's product suite to help navigate dynamic macroeconomic and geopolitical conditions. The second quarter is off to a robust start, and we look forward to continuing to execute on our strategic vision by providing clients with a diverse toolkit of products for any market environment."
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CME Group Sets New ADV Record of 35.9 Million Contracts In April, Up 36% Year Over Year
CME Group
CME Group, the world's leading derivatives marketplace, today reported its April 2025 market statistics reached an all-time monthly average daily volume (ADV) record of 35.9 million contracts, an increase of 36% year-over-year. The company's interest rate ADV grew 46% to 18.4 million contracts in April, while its equity index and metals products set new monthly ADV records of 9.7 million contracts and 1 million contracts, respectively. CME Group also reached monthly volume records in SOFR futures (6 million contracts), Micro E-mini Nasdaq-100 futures (2.3 million contracts), Micro E-Mini S&P 500 futures (2 million contracts) and U.S. Treasury options (1.8 million contracts).
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HKEX chief says derivatives trading glitch caused by software bug
Reuters
A derivatives trading glitch at bourse operator Hong Kong Exchanges and Clearing (HKEX) was caused by a software bug and was not due to human error, chief executive Charles Li said on Friday.
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| | | | | | Regulation & Enforcement | | | Ex-Janus Henderson Analyst Accused of Insider Trading Said he Saved 'Dying Fund'
Lucca De Paoli - Bloomberg
A former Janus Henderson analyst accused of insider trading said he didn't closely read compliance documents as he was too busy trying to save the firm's "dying fund." Redinel Korfuzi is accused of conspiring with his sister and others to trade on insider information he obtained while working as an analyst on Janus Henderson's European equity investment team. The UK's Financial Conduct Authority, which is prosecuting the case, alleges that he helped his sister, girlfriend and personal trainer make short bets on stocks just before they issued new equity to the market.
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| | | | | | Strategy | | | 0DTEs Decoded: Positioning, Trends, and Market Impact
Mandy Xu - Cboe
SPX zero day to expiry (0DTE) options trading have grown more than five-fold over the past 3 years, now averaging almost 2M contracts a day. What is driving that growth? Increased utility and wider adoption are two big drivers, with retail powering much of the increase. We estimate that retail now makes up around 50-60% of SPX 0DTE trading.
In this report, we take a deep dive into retail and institutional trading characteristics - what they're trading, how they're trading, and the risk profiles of each group. One notable takeaway is just how sophisticated and disciplined retail investors have become in 0DTE trading and the multiple ways they have in managing their risk.
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