About Cboe Global Markets

Cboe Global Markets, Inc., through its subsidiaries (Cboe), operates as an options exchange worldwide. The company is the leading derivatives and securities exchange network, delivers cutting-edge trading, clearing and investment solutions to people around the world. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives, FX, and digital assets, across North America, Europe, and the Asia Pacific. The company operates Cboe Europe, one of the largest stock exchanges by value traded in Europe, and owns Cboe Clear Europe, a leading pan-European equities and derivatives clearinghouse, BIDS Holdings, which owns a leading block-trading ATS by volume in the U.S., and provides block-trading services with Cboe market operators in Europe, Canada, Australia, and Japan, Cboe Australia, an operator of trading venues in Australia, Cboe Japan, an operator of trading venues in Japan, Cboe Digital, an operator of a U.S. based digital asset spot market and a regulated futures exchange, Cboe Clear Digital, an operator of a regulated clearinghouse, and Cboe Canada Inc., a recognized Canadian securities exchange. Cboe subsidiaries also serve collectively as a leading market globally for exchange-traded products (ETPs) listings and trading. Business Cboe reports on the following six business segments: Options: The Options segment includes options on market indices (index options), as well as on the stocks of individual corporations (equity options) and on exchange-traded products (ETPs), such as exchange-traded funds (ETFs) and exchange-traded notes (ETNs), which are multi-listed options and listed on a non-exclusive basis. These options are eligible to trade, as applicable, on Cboe Options, C2, BZX, EDGX, and/or other U.S. national security exchanges. Cboe Options is the company’s primary options market and offers trading in listed options through a single system that integrates electronic trading and traditional open outcry trading on the Cboe Options trading floor in Chicago. C2 Options, BZX Options, and EDGX Options are all-electronic options exchanges, and typically operate with different market models and fee structures than Cboe Options. The Options segment also includes applicable market data fees revenues generated from the consolidated tape plans, the licensing of proprietary options market data, index licensing, routing services, and access and capacity services. North American Equities: The North American Equities segment includes U.S. equities and ETP transaction services that occur on fully electronic exchanges owned and operated by BZX, BYX, EDGX, and EDGA, equities transactions that occur on the BIDS Trading platform in the U.S. and Canada, and Canadian equities and other transaction services that occur on or through Cboe Canada Inc.’s order books. The North American Equities segment also includes listing services on Cboe Canada Inc., corporate and ETP listings on BZX, applicable market data fees revenues generated from the consolidated tape plans, the licensing of proprietary equities market data, routing services, and access and capacity services. Europe and Asia Pacific: The Europe and Asia Pacific segment includes the pan-European listed equities and derivatives transaction services, ETPs, exchange-traded commodities, and international depository receipts that are hosted on MTFs operated by Cboe Europe Equities (Cboe Europe and Cboe NL equities exchanges) and Cboe Europe Derivatives (CEDX). It also includes the ETP listings business on RMs and clearing activities of Cboe Clear Europe, as well as the equities transaction services of Cboe Australia and Cboe Japan, operators of trading venues in Australia and Japan, respectively, along with equities transactions that occur on the BIDS Trading platform in Australia and Japan. Cboe Europe operates lit and dark books, a periodic auctions book, and Cboe BIDS Europe, a Large-in-Scale (LIS) trading negotiation facility for UK symbols. Cboe NL, launched in 2019 and based in Amsterdam, operates similar business functionality to that offered by Cboe Europe, and provides for trading only in European Economic Area (EEA) symbols. Cboe Europe Derivatives, a pan-European derivatives platform launched in September 2021, offers futures and options based on Cboe Europe equity indices, and single stock options. This segment also includes Cboe Europe, Cboe NL, CEDX, Cboe Australia and Cboe Japan revenue generated from the licensing of proprietary market data and from access and capacity services. Futures:The Futures segment includes transaction services provided by CFE, a fully electronic futures exchange, which includes offerings for trading of VIX futures and other futures products, the licensing of proprietary market data, as well as access and capacity services. Global FX: The Global FX segment includes institutional FX trading services that occur on the Cboe FX fully electronic trading platform, non-deliverable forward FX transactions (NDFs) offered for execution on Cboe SEF, as well as revenue generated from the licensing of proprietary market data and from access and capacity services. The segment includes transaction services for the U.S. government securities executed on the Cboe Fixed Income fully electronic trading platform. Digital: The Digital segment includes a U.S. based digital asset spot market, a regulated futures exchange, and a regulated clearinghouse, as well as revenue generated from the licensing of proprietary market data and from access and capacity services. Strategy The company’s strategy is to build one of the world’s largest global derivatives and securities networks to create value and drive growth by innovating to capture growing demand for trading products and data services, globally; unlocking the value capabilities of its ecosystems to increase efficiency and better serve customers; and growing by accessing untapped addressable markets. Proprietary Products In addition to operating cash and spot markets and derivative markets, and providing data and access solutions, the company is a leader in the volatility space with the proprietary products it offers for trading. These proprietary products are built through Cboe Labs, a dedicated team centered on the creation, development, and implementation of new ideas and the company’s strategic relationships and license agreements with index providers. The company’s most frequently traded proprietary products include SPX options and VIX options and futures. SPX Options The S&P 500 Index is an index comprised of 500 large-cap U.S. listed companies. It is one of the most commonly followed indices and is considered a bellwether for the U.S. economy. The SPX options the company offers on the S&P 500 Index are exclusive to Cboe and contribute substantially to its volumes and transaction fees. Because of the S&P 500 Index’s status as a bellwether, SPX options are used in many different trading strategies by customers with different goals, including pension funds hedging their equity exposure by buying put options, asset managers seeking enhanced returns by selling covered call options and hedge funds using risk-managed strategies to capture so-called risk premia embedded in option prices. The company also offers zero days to expiry (0-DTE) products, Mini- and Nano-SPX options, FLEX- and FLEX micro-SPX options, and SPX Weeklys options, which have settlements on Mondays, Tuesdays, Wednesdays, Thursdays, Fridays and on the last trading day of each month and 24x5 trading in SPX options. Volatility Trading Cboe pioneered the trading of exchange-traded volatility products with its introduction of VIX futures in 2004 and VIX options in 2006. The VIX Index is based on the mid-point of real-time quotes of SPX options and is designed to reflect investors’ consensus view of future 30-day expected stock market volatility. The VIX Index methodology provides the basis for the creation of VIX options and futures. The final settlement value of VIX options and futures is determined on their expiration date through a Special Opening Quotation (SOQ) of the VIX Index. The SOQ calculation uses opening trade prices of selected options; unless there is no opening price, in which case the opening price used in the SOQ calculation is the midpoint of the highest bid and lowest offer at the time of the opening. The company has seen trading from a number of different customer segments utilizing a number of different trading strategies, including hedging extreme stock market declines, also known as tail risk hedging, and risk-managed strategies that seek to capture the relative price changes of expected volatility at different times in the future. The company also offers the 1-Day Volatility Index (VIX1D), VIX Weeklys options and futures, mini VIX futures, and 24x5 trading in VIX options and futures to provide investors with additional tools to trade volatility. Proprietary Indices The company also calculates and disseminates proprietary indices that are licensed for use by third parties or are used as the basis for Cboe proprietary products. These proprietary indices are built both through the company’s in-house research and development staff of the Data and Access Solutions business and its strategic relationships and license agreements with index providers. The company’s proprietary indices include: volatility indices based on broad-based market indices, such as the S&P 500 and the Russell 2000, volatility indices based on ETFs, and options strategy benchmark indices, such as the Cboe BuyWrite, PutWrite and Collar indices based on the S&P 500 and Russell 2000, BuyWrite and PutWrite indices based on MSCI EAFE and MSCI Emerging Markets indices, and BuyWrite indices based on other broad-based market indices. In addition to any transaction fee revenue generated from trading of products based on these indices on Cboe exchanges, the company distributes these indices through the Cboe Global Index Feed index data subscription service and, together with index providers with whom it has strategic relationships, it licenses proprietary indices for third parties to use to create third-party indices and products. Accordingly, the company generates revenue from proprietary indices by distributing them for reference purposes, using them as the basis for proprietary products and licensing them for use for third-party indices and products. Strategic Index Provider Relationships The company has long-term business relationships with several providers of market indices. The company licenses their indices, including on an exclusive basis, as the foundation for indices, index options and other products. The company also agrees to work jointly with key providers to develop new products and services that are expected to capitalize on its core competencies and diversify its sources of revenue. Of particular note are the following: S&P Global: The company has the following licensing arrangements with S&P Global, Inc. subsidiaries: S&P Dow Jones Indices: The company has the exclusive right to offer exchange-listed options contracts in the United States on the S&P 500 Index, the S&P 100 Index, the S&P 500 ESG Index, and the S&P Select Sector Indices as a result of a licensing arrangement with S&P Dow Jones Indices, LLC (S&P). The company’s license from S&P is through December 31, 2033, with an exclusive license to trade options on the S&P 500 Index through December 31, 2032. The company uses the market data from the trading of options on the S&P 500 Index and S&P 100 Index for the creation of Cboe volatility indices, such as the Cboe Volatility Index (VIX Index), and to create tradable products on those volatility indices. IHS Markit: Under its licensing agreement with IHS Markit Ltd. (acquired by S&P Global in 2022), the company has a worldwide license through August 23, 2025 to offer options and futures on indices designed to reflect values of investment grade and high-yield U.S. corporate bonds. Unless either party elects otherwise, this agreement auto-renews for successive two-year periods. The company offers futures and options on futures on high yield and investment grade corporate bond indices. DJI Opco: The company has the exclusive right during standard U.S. trading hours to offer listed options contracts in the United States on the Dow Jones Industrial Average (DJIA) and Dow 10 Index, and non-exclusive rights to offer listed options on several other Dow Jones indices including the Dow Jones Utilities Average and Dow Jones Transportation Average. This licensing arrangement with DJI Opco, LLC (acquired by S&P in 2012) extends through December 31, 2033. The company uses market data from the trading of options on these indices to create Cboe volatility indices, variance indicators and BuyWrite indices, and it trades options and other products on these indices. FTSE Russell: Under its license agreement with the London Stock Exchange Group’s (LSEG) leading global index franchises, Frank Russell Company and FTSE International Limited (together FTSE Russell), the company has the exclusive or first right in the United States to offer listed options on more than two dozen FTSE Russell indices, which represent a diverse group of domestic and global equities with international appeal. The company’s exclusive license from FTSE Russell is through April 1, 2030. The company offers options on the Russell 2000, Russell 1000, Russell 1000 Value and Russell 1000 Growth indices and mini-options on the Russell 2000 Index. MSCI: The company has an agreement with MSCI Inc. (MSCI) until December 31, 2031 in which it has the right to offer U.S.-listed options on several of MSCI’s indices including the MSCI EAFE and MSCI Emerging Markets indices. The company uses market data from the trading of the MSCI EAFE and MSCI Emerging Markets index options (among other inputs) to calculate volatility indices and several versions of BuyWrite and PutWrite strategy indices. Data and Access Solutions The Data and Access Solutions business provides an offering of market data and information solutions products across multiple asset classes and geographic regions that are designed to suit its customers’ diverse needs. The Data and Access Solutions business consists of three product groups: Data and Access Services: Data products include real-time depth of book quotation information, auction and complex option information, top of book quotes and trades, last sale information, and consolidated equity feeds. In addition to market data, access services include all access and capacity products, including connectivity, terminal and other equipment rights, maintenance services, trading floor space and permits for the opportunity to trade. Cboe Global Indices: Services include index creation, calculation, licensing, and data dissemination. In addition to index data dissemination, through Cboe’s Global Indices platform, the company distributes real-time cryptocurrency prices and indicative net asset values. Additional information regarding the company’s proprietary indices. Risk and Market Analytics: Services include analytics and historical data with three areas of focus: Data and Market Analytics: Services include aggregated equity and derivative market statistics, theoretical values, trading indicators, portfolio and margin risk, scenarios, and historical data from Cboe’s markets, as well as third-party consolidated data. Front-End Platforms: Cboe provides multiple trading solutions and services including Cboe Silexx, LiveVol Pro, FT Options and Trade Alert. Connectivity: Services include FIX Order Routing, Trade Drop Copy Network, consolidated audit trail (CAT) reporting, and broker connectivity. The company provides data services to market participants globally through a number of distribution channels, including direct, via its vendor partners and Cboe Global Cloud, which is its global cloud data distribution service. U.S. Tape Plans The company also derives a portion of its revenue from market data fees from U.S. tape plans, including Unlisted Trading Privileges (UTPs), the Consolidated Tape Association (CTA) and OPRA. Fees, net of plan costs, from UTP, CTA, and OPRA are allocated and distributed to plan participants like it according to their share of tape fees based on a formula, required by Regulation NMS, which may take into account both trading and quoting activity. Market Models The company operates a variety of derivatives and cash and spot markets. For its the U.S. derivatives options markets, Cboe Options is a hybrid market combining open outcry floor trading with electronic trading. For multi-listed products, it utilizes public customer priority, market turner in certain products, participation rights and pro-rata allocation market models, combined with the classic pricing model. For proprietary products, the company uses price-time or pro-rata allocation, sometimes with public customer priority, and market turner market models, combined with a pricing model where all market participants generally pay fees. The company’s other three options markets are fully electronic. BZX options utilizes a price-time market model, combined with a maker-taker pricing model. For it the U.S. cash and spot markets, the U.S. equities exchanges, which are fully electronic, offer various market models. BZX equities utilizes a price-time market model, combined with the maker-taker pricing model. EDGX equities utilizes a price-time with retail priority market model, combined with the maker-taker pricing model. For its cash and spot markets, BIDS Trading, the U.S. equities ATS market, which is fully electronic and is an independently managed and operated trading venue, separate from and not integrated with the Exchanges, utilizes a sponsored access model to provide anonymous executions in NMS stocks. BIDS Trading provides numerous order types, including both firm and conditional orders. All orders matched within BIDS Trading are executed at or better than the National Best Bid and Offer (NBBO). In Canada, for its cash and spot markets, Cboe Canada Inc., a recognized Canadian securities exchange, which is fully electronic, offers four order books: NEO-L, which provides resting orders with priority over high-frequency orders and combines a maker-taker pricing model with a NEO trader priority; NEO-N, which prioritizes larger resting orders over smaller orders, imposes a speed bump, and displays volume aggregate by price, with a taker-maker pricing model; NEO-D, which allows participants to submit marketable and resting orders with specified parameters and NEO trader priority with size-time priority, with a taker-maker pricing model; and MATCHNow, which combines frequent call matches and continuous execution opportunities in a confidential trading book, using real-time quotes for protected transparent Canadian markets, accepting both firm and conditional orders, and matching firm orders at three levels of price improvement. Trading fees are typically calculated as a function of trade volume and share price. In Europe, the company operates a number of market models, including continuous Lit orderbooks, periodic auction orderbooks, dark midpoint orderbooks, a post-closing cross, as well as BIDS Europe. Fees are typically charged on an ad valorem basis based on traded notional value, and are differentiated by orderbook, by order type, by monthly value traded, and in the case of Lit orderbooks by liquidity providing/taking orders where (on a subset of orderbooks) a rebate may be paid to the provider of passive liquidity. Following the implementation of the Directive on Markets in Financial Instruments (Directive 2014/65/EU) (MiFID II), for the derivatives and cash and spot markets, rebates are generally available if they are tied to a market making scheme or specific service. In Australia, for its derivatives and cash and spot markets, Cboe Australia, a regulated stock exchange, which is fully electronic, utilizes a model that charges a different ad valorem fee rate depending on whether a participant is making or taking liquidity. Fee waivers are also provided to participants registered as market makers, but payments for order flow are prohibited. For its FX spot markets, the Cboe FX platform utilizes a price-firmness-time priority market model, combined with a pricing model where users are charged either a flat or tiered commission rate based upon the notional amount traded on the platform. For its FX NDF markets, Cboe SEF utilizes a price-firmness-time priority market model and charge a flat commission based upon the notional amount traded on the platform and the capacity in which a participant is trading. Cboe Digital, which is fully electronic, for its digital asset spot and futures markets, utilizes a price-time priority model. The company’s markets also charge fees for the opportunity to trade or access its markets, including fees for trading-related functionality. To facilitate trading, the company also charges fees for certain technology services, terminal and other equipment rights, maintenance services, trading floor space and telecommunications services. Listing Cboe operates five listing venues across the globe that are structured and designed, in the U.S. and Canada, for all types of equity instruments, such as ETPs, corporate securities, warrants and depositary receipts, while in the U.K. and EU they support ETPs only. In Australia, both ETPs and warrants are supported. Over the course of 2023, Cboe added approximately 800 listings across the globe and had approximately 2,080 listings for the year ended December 31, 2023. Cboe also launched Cboe Global Listings in June of 2023, the first-of-its-kind, global listing network facilitating worldwide access to capital and secondary liquidity for companies and ETFs, and successfully attracted its first intralisted corporate issuer to the global platform. Clearing The company’s subsidiary Cboe Clear Europe, a European central counterparty (CCP), provides post-trade clearing services, to stock exchanges, multilateral trading facilities and for over-the-counter equities trades and exchange-traded derivatives trades. Cboe Clear Europe acts as a central counterparty that, for its clearing participants, becomes the buyer to every seller and the seller to every buyer. As a result, it guarantees the timely performance of the settlement obligations of buyers and sellers and takes on the risk of the performance of the transactions that it clears. Additionally, as a Financial Market Infrastructure, Cboe Clear Europe is subject to strict business continuity requirements and regulatory oversight. Cboe Clear Digital is a digital asset clearinghouse and central counterparty that provides clearing and settlement of digital asset trades for its affiliate, Cboe Digital Exchange. Cboe Clear Digital clears cryptocurrencies from 50 U.S. jurisdictions authorized by license or not subject to licensing. Customers The company’s customers generally include financial institutions, trading platforms, institutional and individual investors, and professional traders. The company’s equities and options customers in the United States include trading permit holders and members (as applicable) of Cboe Options, C2, BZX, BYX, EDGX, and EDGA, which are SEC-registered broker-dealers, and the customers of those broker-dealers. The company’s Canadian equities customers include members of Cboe Canada Inc., which are Canadian registered investment dealers. The company’s Australian customers include trading participants of Cboe Australia, which are Australian registered investment dealers, and certain clients of those dealers. The company’s Japanese customers include participants of Cboe-Alpha, Cboe-Select, Cboe-Match and Cboe BIDS Japan, which are Japanese registered broker-dealers, and certain clients of those dealers. The company’s ATS equities participants in the United States include subscribers of BIDS Trading, which are SEC-registered broker-dealers, and certain customers of those broker-dealers. The company’s futures customers include banks, futures commission merchants and their customers, hedge funds, asset managers, proprietary trading firms, and Commodity Trading Advisors. Similarly, its equities’ customers in Europe are European Union (EU) regulated brokerage and proprietary trading firms, as well as sponsored access clients of these brokerage firms and certain non-EU regulated and unregulated direct access participants. Cboe Clear Europe clears equities, equity like instruments traded on 47 European trading segments. Cboe Clear Europe also clears equity derivative instruments traded on Cboe NL. Cboe Clear Europe clearing participants include EEA regulated banks and brokerage trading firms. The company’s institutional global FX customers include banks, broker-dealers, hedge funds, asset managers, proprietary trading firms, Commodity Trading Advisors, and corporates. The company’s digital asset customers in the U.S. include SEC-registered broker-dealers, the customers of those broker-dealers, financial institutions, trading platforms, institutional and individual investors, futures commission merchants, introducing brokers, and professional traders. Access to its markets and trading rights and privileges depend upon the nature of the customer, such as whether the individual or firm is (or is eligible to become) a trading permit holder, trading privilege holder, member, participant, or subscriber of one of its markets. Technology Cboe Trading Technology The trading platform for the company’s equities, options, and futures markets is developed, owned, and operated in-house and is designed to optimize reliability, speed, scalability, and versatility. The company’s exchanges provide different market models, appealing to different user bases, and the trading technologies support all of them. Further, the technologies are designed to support many specialized features for each of the markets, such as dark pools, trade reporting facility, systematic internalizer, Large-in-Scale, smart order routing, FLEX options, 24x5 trading, and hybrid trading (combining electronic and open outcry). In addition, Cboe and its applicable subsidiaries operate separate trading and/or clearing platforms, as applicable, for BIDS Trading, certain Cboe Canada Inc. order books, Cboe Digital, Cboe Clear Europe, and Global FX. The company’s trading platforms have generally experienced very low operational downtime and low latency. The trading platforms use readily available hardware, thereby minimizing capital outlays required for each new market entry. Also, in order to continue to implement new enhancements to the company’s trading platforms, new releases of software are generally deployed routinely in all of the applicable markets. Disaster Recovery The company operates and maintains geographically diverse disaster recovery facilities for all of its markets. The company regularly tests its data center recovery plans and periodically carry out weekend tests using its back-up data centers, as well as an annual test with its the U.S. trading participants. In Canada, as required by local regulations, Cboe Canada Inc. conducts internal testing of its disaster recovery data processing capabilities at least annually, and it participates in the bi-annual testing coordinated by CIRO. Cboe Australia and Cboe Japan conduct internal testing of their disaster recovery data processing capabilities at least annually. In Europe, the company also regularly tests its data center recovery plans and periodically carry out weekend tests which use its back-up data center, as well as an annual test with its European trading participants. The company continues to work to improve both the availability of its technology and its disaster recovery facilities. Emerging Technologies The company is exploring the potential use of new technologies, such as artificial intelligence (AI), machine learning, blockchain, distributed ledger technology, quantum computing, tokenization, the cloud, and other emerging technologies to potentially help drive new products, increase productivity, improve its self-regulatory oversight responsibilities, and increase automation of tasks. Routing and Clearing OCC is the sole provider of clearing on all of the company’s the U.S. options exchanges and CFE. National Securities Clearing Corporation (NSCC), a subsidiary of the Depository Trust and Clearing Corporation (DTC), is the sole provider of clearing on its U.S. listed equity exchanges. The Canadian Depository for Securities (CDS) is the sole provider of clearing on all equities transactions occurring on Cboe Canada Inc. With respect to Australian equities and derivatives, Cboe Australia delivers matched trades of its customers to ASX Clear Pty Ltd and ASX Settlement Pty Ltd. ASX Clear Pty Ltd acts as a central counterparty on all transactions occurring on Cboe Australia. The Japan Securities Clearing Corporation (JSCC) is the sole provider of clearing on all equities transactions occurring on Cboe Japan’s Cboe-Alpha, Cboe-Select, Cboe-Match and Cboe BIDS Japan. BofA Securities, Inc. (BOA) is the sole provider of clearing on all equities transactions occurring on BIDS Trading. Cboe Europe Equities relies on LCH Limited and LCH SA (LCH), Cboe Clear Europe, and SIX x-clear Ltd (SIX x-clear) to clear trades in European listed equity securities and exchange traded products as part of an interoperable clearing model. For derivatives, Cboe NL relies on Cboe Clear Europe to clear both index and single stock derivative contracts. Cboe Clear Digital is the sole provider of clearing and settlement of all digital asset transactions occurring on Cboe Digital Exchange. Cboe Trading is a routing broker-dealer used by the company’s four U.S. equities exchanges and its four U.S. options exchanges, including the electronic platform portion of Cboe Options. Cboe Trading’s clearing firms are Wedbush Securities, Inc. (Wedbush) and Morgan Stanley & Co. LLC (Morgan Stanley). Digital Assets and Recent Developments Cboe Digital is an operator of a U.S. based digital asset spot market, a regulated futures exchange, and a regulated clearinghouse. Cboe Digital takes several steps to isolate the digital assets held for customers from its own assets and to structure customer accounts in a way that reinforces customer ownership of digital assets. Primarily, Cboe Digital holds customer digital assets separate from its own assets in customer accounts, referred to as wallets, with long-term storage by a third party custody provider and licensed trust company. When Cboe Digital temporarily holds digital asset for customers to enable the inbound receipt and outbound transmittal of virtual currencies, customer digital assets are held in omnibus wallets titled for the benefit of customers of Cboe Digital. Digital assets of customers (but not those of Cboe Digital) are held together in the omnibus wallets, and Cboe Digital maintains the records of the amount and type of digital asset owned by each of its customers in the omnibus wallets. Cboe Digital does not hold its own corporate assets together with the customer digital assets in the omnibus wallets, other than corporate assets that are held in omnibus wallets to facilitate customer transactions relating to the digital assets contained in the omnibus wallet, including in order to pay customary transaction fees and expenses. Further, Cboe Digital holds customer digital clearing assets through accounts with third party custodians and, in the case of hot and warm wallets, through self-custody. Cboe Digital’s custody strategy is designed to maximize liquidity and efficient access to assets by making those assets readily available. Cboe Digital monitors its cash and the digital asset balances it maintains with custodians. Digital assets require control of one or more unique public and private keys relating to the local or online digital wallet in which the digital assets are held. The networks require one or more private keys relating to a digital wallet to authorize a spending transaction. Cboe Digital has committed to securely store digital assets it holds on behalf of users. Cboe Digital’s valuation governance framework includes numerous controls and other procedural safeguards that are intended to maximize the quality of fair value measurements. Cboe Clear Digital clears cryptocurrencies from 50 U.S. jurisdictions authorized by license or not subject to licensing. Cboe Clear Digital performs a guarantee function whereby Cboe Clear Digital helps to ensure that the obligations of the transactions it clears are fulfilled. Spot trading is either cleared on a fully funded basis or by providing non-material daily trading limits to certain well-qualified institutional clearing members. Cboe Digital launched trading and clearing in margin futures on Bitcoin and Ether on January 11, 2024. With this launch, Cboe Digital became the first U.S. regulated crypto native exchange and clearinghouse to enable both spot and leveraged derivatives trading on a single platform. Trademarks Cboe, Cboe Global Markets, Cboe Clear, Cboe LIS, Bats, BIDS Trading, BYX, BZX, Cboe Volatility Index, CFE, EDGA, EDGX, ErisX, EuroCCP, Hybrid, LiveVol, MATCHNow, NANO, Options Institute, Silexx, VIX, and XSP are registered trademarks, and Cboe Futures Exchange, Cboe BIDS Europe, Cboe Digital, C2SM, options, Hanweck, Nanos by Cboe, The Exchange for the World Stage, Trade Alert, and VIX1D are service marks of the company and its subsidiaries. Standard & Poor's, S&P, S&P 100, S&P 500 and SPX are registered trademarks and DSPX is a service mark of Standard & Poor's Financial Services LLC and has been licensed for use by Cboe Exchange, Inc. Dow Jones, Dow Jones Industrial Average, DJIA and Dow Jones Indices are registered trademarks or service marks of Dow Jones Trademark Holdings, LLC, used under license. Russell and the Russell index names are registered trademarks of Frank Russell Company, used under license. FTSE and the FTSE indices are trademarks and service marks of FTSE International Limited, used under license. MSCI and the MSCI index names are service marks of MSCI Inc. (MSCI) or its affiliates and have been licensed for use by the company. Regulatory Environment and Compliance Various aspects of the company’s business are subject to regulation by the SEC, CFTC, FINRA, the New York Department of Financial Services (NYDFS), various state regulators, CIRO, the Canadian Securities Administrators (and, in particular, the Ontario Securities Commission or OSC), the Australian Securities & Investments Commission (ASIC), JFSA, JSDA, ESMA, FCA, the Central Bank of the Netherlands (DNB), AFM, Bank of England, and other international regulatory authorities where its exchanges or Cboe Clear Europe may be authorized to act as foreign exchanges or provide clearing services, and market participants may be subject to regulation by the SEC, CFTC, FINRA, National Futures Association (NFA), FCA, Board of Governors of the Federal Reserve, U.S. Department of the Treasury and/or foreign regulators. The operations of each of CFE and Cboe SEF are subject to regulation by the CFTC under the Commodity Exchange Act (CEA). Cboe Europe is located in London and is subject to regulation in the UK and to certain European regulations. Cboe Clear Europe and Cboe NL are located in Amsterdam and subject to Dutch law and regulation. Cboe Trading, BIDS Trading, and Cboe Fixed Income are registered broker-dealers regulated by the SEC, FINRA, other SROs of which they are members and various state securities regulators. Cboe Trading operates as a routing broker-dealer for sending orders from the Exchanges to other venues for execution, including routing orders among the Exchanges. Cboe Trading is considered a facility of each of the Exchanges and is subject to the rules of the Exchanges. The Exchanges are responsible for enforcing Cboe Trading’s compliance with their rules, including to ensure Cboe Trading is not given preferential treatment. BIDS Trading operates an ATS, which is designed to bring counterparties together to anonymously trade large blocks of U.S. equities. Cboe Fixed Income, a registered broker-dealer and member of FINRA, operates an electronic trading system for U.S. government securities targeted at the institutional inter-dealer market for trading on-the-run U.S. Treasury bonds and notes in the secondary OTC markets. Cboe Fixed Income’s participants are SEC registered broker-dealers that are members of The Depository Trust and Clearing Corporation’s Fixed Income Clearing Corporation. Cboe Trading, BIDS Trading, and Cboe Fixed Income are subject to SEC and SRO rules, as applicable, and, as registered broker-dealers, regulations concerning all aspects of their businesses, including trading practices, order handling, best execution, anti-money laundering, handling of material non-public information, safeguarding data, reporting, capital adequacy, record retention, market access and the conduct of their officers, employees and other associated persons. Cboe Canada Inc. is subject to comprehensive regulation and oversight by its primary provincial securities regulatory authority, the OSC. In addition, Cboe Canada Inc. is a Marketplace Member of, and subject to a regulation services agreement with, CIRO. The regulations applicable to Cboe Canada Inc. cover a wide array of areas, including, but not limited to, marketplace operations (which include corporate governance, fair access, systems compliance and integrity, and conflict management requirements), trading rules, electronic trading risk management, and financial viability. The company collects certain fees to cover Section 31 fees charged to the Exchanges by the SEC and certain fees derived from its regulatory function and fines in connection with its disciplinary proceedings. The Exchanges are responsible for the ultimate payment of Section 31 fees to the SEC. Additionally, under the rules of each of the company’s exchanges, as required by the SEC, any revenue derived from the regulatory fees and fines cannot be used for non-regulatory purposes. As registered national securities exchanges, virtually all facets of the company’s Exchange operations are subject to the SEC’s oversight, as prescribed by the Exchange Act. The Exchange Act and the rules thereunder impose on the company many regulatory and operational responsibilities, including record keeping and the day-to-day responsibilities for market operations and broker-dealer oversight. Certain aspects of the company are also subject to SEC, FCA and AFM oversight, including certain ownership and voting restrictions on its stockholders. In addition, the company indirectly holds all of the issued share capital and voting rights in Cboe Europe and its wholly-owned subsidiaries, Cboe Chi-X Europe and Cboe NL. The company’s U.S.-based exchanges are responsible for assessing the compliance of their TPHs or members, including Cboe Trading, with the respective exchange’s rules and the applicable rules of the SEC and/or CFTC. All of the company’s Exchanges, CFE, and Cboe Digital Exchange are participants in various cooperative and regulatory information sharing agreements, including in the Intermarket Surveillance Group (ISG). The company is a member participant of several NMS plans including but not limited to, the following: Cboe Options, C2, BZX, and EDGX are member exchanges in OPRA, which is the designated securities information processor for market information that is generated through the trading of exchange-listed securities options in the United States, and it disseminates certain core trading information, such as last sale reports and quotations. History The company was founded in 1973. It was incorporated in the state of Delaware in 2006. The company was formerly known as CBOE Holdings, Inc. and changed its name to Cboe Global Markets, Inc. in 2017.