Cboe Global Markets Inc (NASDAQ: CBOE) has posted better than expected earnings results in the third quarter of FY 17 as the largest U.S. options exchange earned higher fees from record trading of options and futures and its purchase of European exchange operator Bats. U.S. exchanges have been on an acquisition spree as they try to diversify their revenue streams, mainly as a hedge against swings in market volatility that affects trading and clearing revenues. In the third quarter, the company has experienced strong record quarterly average daily trading volume in VIX options and futures with increases of 56 percent and 36 percent, respectively, compared to the third quarter of 2016, despite record lows in realized volatility.

CBOE in the third quarter of FY 17 has reported the adjusted earnings per share of 89 cents, beating the analysts’ estimates for the adjusted earnings per share of 88 cents according to Thomson Reuters. The company had reported the adjusted revenue of $269.7 million in the third quarter of FY 17, missing the analysts’ estimates for revenue of $270.6 billion. Cboe’s revenue grew to $611.4 million, from $168.7 million last year, driven mainly by Bats Global, Europe’s largest stock exchange, which the company bought for $3.2 billion last year. Further, the increase primarily reflects higher revenue from the net transaction fees, market data fees and exchange services and other fees. The net transaction fees has increased $22.0 million year-over-year primarily due to higher transaction fees in futures and index options, offset somewhat by lower net transaction fees from U.S. Equities.

Additionally, for FY 17, CBOE expects the adjusted operating expenses to be in a range of $413 million to $415 million, down from the prior guidance range of $415 million to $423 million. The capital expenditures are expected to be in the range of $49 million to $53 million, down from previous guidance of $55 million to $60 million.

In addition, CBOE has paid cash dividends of $30.6 million, or $0.27 per share, during the third quarter of 2017 and has declared a dividend of $0.27 per share for the fourth quarter of 2017.

Meanwhile, CBOE has announced the planned retirement of its Executive Vice President, Chief Financial Officer (CFO) and Treasurer, Alan Dean, at the end of December 31st, 2017, after 38 years of service to the company.  CBOE has planned to promote Brian Schell, currently Deputy CFO, to Executive Vice President, Chief Financial Officer (CFO) and Treasurer, effective from January 1st, 2018.