Cboe Global Markets, the Chicago-based exchange network for stock options and equities, does business worldwide but it didn’t have to leave town to find a new chief executive.
The company said Thursday it has named Craig Donohue as its CEO and a member of its board. Donohue, 63, will start the job May 7.
He most recently was chairman of Options Clearing Corp., which settles and clears trades in the options marketplace. His prior work included a stint as CEO of the other exchange juggernaut in town, CME Group, from January 2004 to May 2012.
During those years, CME completed its historic $11.9 billion buyout of the Chicago Board of Trade in 2007 and later added the New York Mercantile Exchange as part of an industry consolidation spree.
Donohue’s history with CME is liable to spur merger talk between the two exchange operators, a topic traders have wondered about since the Board of Trade deal was sealed. Both Cboe and CME have reported record trading volumes in recent weeks. When stocks and bonds turn volatile, investors turn to futures and options contracts for hedging and speculation.
In a news release, Cboe Chairman William Farrow III said Donohue’s “visionary leadership, deep experience, industry relationships and proven track record in global financial markets make him an excellent individual to take the helm as CEO at Cboe.” Farrow added, “We believe his strategic vision and leadership will drive the company towards continued growth and increased value for shareholders.”
Donohue described himself as being “thrilled to guide Cboe into its next chapter,” making no mention of any industry tie-ups. He praised Cboe’s “commitment to innovation, excellence and teamwork.”
A Cboe spokesperson said Donohue was unavailable for further comment.
Donohue has been active on the civic scene. He is a former chairman of the Executives’ Club of Chicago and was a director of the Chicago Council on Global Affairs.
He succeeds Fredric Tomczyk, who had announced plans to quit as CEO but remain on the board. Tomczyk, a former CEO of TD Ameritrade, stepped into the breach for Cboe in 2023 when it abruptly fired Ed Tilly after an investigation of his conduct.
The company determined Tilly violated policies by not disclosing personal relationships with colleagues. It said it turned up multiple cases of wrongdoing unrelated to company finances or strategy.
“Craig is a highly accomplished and respected leader in the global derivatives industry, and will no doubt lead Cboe to new heights. He shares Cboe’s values and passion for creating a strong corporate culture, delivering best-in-class service to clients and a relentless focus on strategy and execution,” Tomczyk said.
Cboe is due to report its first-quarter earnings Friday. The surge in trading volumes has been good for its stock price, sending its shares 13% higher this year to close Thursday at $221.21.
Over the same period, shares of CME have climbed 19% to Thursday’s close of $277.11. In market capitalization, CME has about four times the value of Cboe.