The Chicago Board Options Exchange (CBOE) says that its unaudited pre-tax profit for 2006 was USD72.5 million compared to 2005’s pre-tax profit of USD19.9 million. Net income for the year was USD42.3 million compared to USD10.9 million the previous year. CBOE’s average daily volume during the 12-month period was 2.7 million contracts, compared to 1.8 million contracts during 2005.
“CBOE began the process of converting to a for-profit organization at the beginning of 2006, and we now have a 12-month track record about which we are very pleased,” says William J. Brodsky, the Chairman and CEO of the CBOE. “CBOE’s after-tax profit of $42.3 million is attributable to a combination of increased volume and a streamlined 2006 operating budget. CBOE’s record volume outpaced the options industry overall, and CBOE maintained the lead position in a crowded field due to the success of the CBOE Hybrid Trading System and through product innovations such as Weeklys and options on the CBOE Volatility Index (VIX).”