2010 Annual Report
  • Chairman Letter
  • Market Leadership
  • Unique Products
  • Trading Technology
  • Industry Advocacy
  • CBOE Holdings
  • Financial Report
Chairman's Letter Image of CBOE-NASDAQ bell ringing ceremony
June 15, 2010, 8:30 a.m.
CBOE executives, staff, members and distinguished guests participate in a live NASDAQ opening bell ringing ceremony from CBOE’s trading floor. Standing at the podium, from left to right: Mark Duffy, CBOE Vice Chairman; Edward Joyce, CBOE President and COO; William Brodsky, CBOE Chairman and CEO; Sandy Frucher, NASDAQ OMX Vice Chairman; and Edward Tilly, CBOE Executive Vice Chairman.

April 11, 2011

To Our Stockholders:

It is with tremendous satisfaction that we address you for the first time as stockholders in the newly formed CBOE Holdings, Inc.

The year 2010 was marked by numerous transformative initiatives for our Company, highlighted by the long-awaited initial public offering (IPO) of CBOE Holdings, Inc.

The Company's listing on the NASDAQ Global Select Market (NASDAQ: CBOE) on June 15, 2010 was a historic day for us. We could not have completed this journey without the dedication and talent of our Board of Directors, management team, exchange staff and former members and owners. We thank each of you for your support throughout the process and we welcome all of our stockholders to the "new" family of CBOE Holdings.


Our Company

CBOE Holdings is the holding company for Chicago Board Options Exchange (CBOE), C2 Options Exchange (C2), CBOE Futures Exchange (CFE) and other subsidiaries. The Company also holds an equity interest in CBOE Stock Exchange (CBSX) and other affiliates. CBOEdirect, the Company’s state-of-the-art electronic platform, supports each of these exchanges and enables us to offer trading in all major asset classes—options, futures and equities—on a single platform.


Our Performance

In our first year as a publicly-traded company, CBOE Holdings achieved solid financial results, reporting that adjusted net income in 2010 increased 14 percent to $106 million, while adjusted diluted earnings per share grew six percent to $1.09. The Company also returned cash to stockholders through dividends of $0.10 per share paid in September and December 2010—the first two quarters following our IPO—and retired approximately 12 million shares of restricted stock through two concurrent tender offers, reducing total shares outstanding by 12 percent.


Our Strengths

The Company is defined by its diverse product line, innovative trading technology and leadership in options advocacy and investor education. Our ability to build upon these strengths enables us to continue to wear the mantle of brand leader in a quickly growing, highly competitive market sector. These unique strengths, so vital to our past success, will serve as the cornerstones from which we will build going forward.


Our Strategy

We are driven to build the value of our business by leveraging economies of scale inherent in our business model, prudently managing expenses across all levels of our organization and realizing and investing in growth opportunities. This strategy, while cemented in solid business fundamentals, is inspired by our imaginations. Each year, our team is challenged to conceive the next new product, to design the latest technology applications, to expand our customer base and to shape our industry. We’ve never wavered from this basic strategy: we only seek the next best way to execute it. Ultimately, we believe that the best way to reward our stockholders is by serving the needs of our customers.


Our Commitment

The progress made in 2010, including the launch of C2, our new all-electronic exchange, and the continued expansion of our volatility franchise, among other key initiatives, demonstrates the commitment of CBOE Holdings to our stockholders and to our customers.

To our stockholders, we strive to deliver value and growth opportunities to you. We will remain acutely focused on maximizing our Company’s premium products, advancing new technologies, tapping new revenue streams and demonstrating fiscal responsibility throughout our organization. We appreciate your belief in CBOE Holdings and will work tirelessly to pursue opportunities that will benefit our bottom line.

To our customers, we pledge to maintain a dynamic marketplace. We aim to deliver the most innovative products and services, while promoting the most liquid, transparent and efficient trading environment possible. Integrity matters. It is the principle that guides how we operate our Company and form lasting relationships. We value your business and intend to compete vigorously every day to earn it.


Our Future

We are excited to embark on our new future as CBOE Holdings and are energized by the possibilities before us. It is amazing to see how far we have come in such a short time; yet there is still so much more for us to achieve. For us, progress never stops.



Brodsky Signature

William J. Brodsky
Chairman and
Chief Executive Officer

Joyce Signature

Edward J. Joyce
President and
Chief Operating Officer

Tilly Signature

Edward T. Tilly
Executive Vice Chairman 


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