Cboe Global Markets, Inc. (Cboe: CBOE), a leading global markets operator and pioneer in equity and index derivatives, announced earlier today it has signed a 25-year extension of its exclusive licensing agreement with S&P Dow Jones Indices ("S&P DJI"), continuing their longstanding collaboration through 2051. See the press release here.
In connection with this announcement, Cboe is providing additional details regarding the anticipated financial impacts of the agreement.
Under the extended agreement, there will be no impact on the 2026 royalty fee terms; the updated royalty fee terms will begin in 2027. Cboe estimates the 2027 royalty fee terms will have a de minimis impact on Cboe's 2027 net revenue growth when considered against organic and ecosystem-driven volume growth, pricing optimization opportunities, and continued business execution. Cboe believes the extended contract, as structured, positions Cboe for growth, with future royalty fee adjustments smaller than the 2027 reset. Cboe will provide more specific 2027 organic total net revenue guidance in February with its fourth quarter earnings.
Additional information will be reported in a current report on Form 8-K filing with the SEC and posted on Cboe's IR website at https://ir.cboe.com.
