SEC Unveils Agenda and Panelists for Options Market Structure Roundtable: Reforms on Horizon for ICE and CBOE
The U.S. Securities and Exchange Commission (SEC) has released the detailed agenda and list of panelists for its upcoming roundtable on options market structure reform, signaling a pivotal moment for the $1 trillion+ U.S. options industry. Scheduled amid surging trading volumes—options contracts hit record highs in 2025—this event will dissect key pain points like liquidity provision, access fees, and order competition, directly impacting dominant players like Intercontinental Exchange (ICE) and Cboe Global Markets (CBOE).
Roundtable Focus: Liquidity, Fees, and Best Execution Under Scrutiny
The agenda, announced this week, features panels on market resiliency, payment for order flow (PFOF), and the interplay between options and equities markets. Panelists include executives from Citadel Securities, Jane Street, and the Options Clearing Corporation (OCC), alongside academics and regulators. Discussions will probe whether current structures—such as the Tick Size Pilot and access fee caps—stifle competition or inflate costs for retail brokers like Charles Schwab (SCHW) and Interactive Brokers (IBKR).
This follows the SEC's 2025 withdrawal of broader proposals on best execution and order competition, but the roundtable keeps reform momentum alive. Potential outcomes could include tweaks to Regulation NMS Rule 611 (Order Protection) or expanded global trading hours, echoing Cboe's recent launches like Monday/Wednesday expiries and Russell 2000 options in extended sessions.
Exchanges Poised for Gains Amid Record Volumes
ICE and CBOE, which together command over 40% of U.S. options market share via NYSE Arca Options and Cboe Options exchanges, stand to benefit most. ICE's Q4 2025 earnings highlighted derivatives platform records, with energy complex strength spilling into options. CBOE reported record $671 million Q4 net revenue, driven by VIX products and DataVantage growth, while launching BITVX—a bitcoin volatility index based on IBIT options.
Yet recent price action reflects caution: ICE shares returned +5.2% over the past month but lag YTD at +0.9%, trading at a 28.1x TTM P/E and 7.4x P/S. CBOE, at 27.8x P/E and 6.4x P/S, gained 13% in 3 months on volatility product momentum.
| Ticker | Market Cap ($B) | P/E TTM | P/S TTM | 1M Return | 3M Return | YTD Return |
|---|---|---|---|---|---|---|
| ICE | 92.9 | 28.1 | 7.4 | +5.2% | +0.4% | +0.9% |
| CBOE | 30.4 | 27.8 | 6.4 | -5.8% | +13.0% | +13.0% |
| SCHW | 166.6 | 20.0 | 6.2 | +0.6% | -3.1% | -7.8% |
| IBKR | 117.0 | 30.4 | 2.9 | -6.8% | +9.3% | +1.6% |
| MS | 263.2 | 16.1 | 2.3 | -9.2% | -10.9% | -14.4% |
| GS | 256.1 | 16.6 | 2.1 | -13.2% | -8.9% | -13.1% |
Data from company snapshots as of latest available. Exchanges show premium valuations on growth prospects; brokers/banks cheaper but exposed to fee pressures.
Brokers and Banks Face Fee Squeeze, But Volumes Buffer
Retail brokers like SCHW and IBKR rely on PFOF for cost efficiency—SCHW added $138B core net new assets in Q3 2025, with daily trades topping 7M. IBKR hit 1M+ net new accounts in 2025, with client equity at $780B. Banks MS and GS, via institutional desks, could see underwriting boosts if reforms spur IPO-linked options activity.
CBOE's Q4 call flagged mid-single-digit 2026 organic revenue growth (DataVantage mid-high single-digits), with op-ex at $864M-$879M. ICE eyes mid-single-digit recurring revenue growth across exchanges and fixed income, with mortgage tech up low-single-digits.
Reforms targeting access fees (capped at $0.30/contract historically) could erode broker margins but boost exchange transaction revenue if volumes migrate. Bullish case: Enhanced resiliency draws institutional flow, lifting ICE/CBOE EV/EBITDA (ICE 16.5x, CBOE 17.5x). Bearish risk: Stricter PFOF rules crimp retail participation, hitting SCHW/IBKR.
Strategic Positioning and Next Catalysts
ICE's 40% OCC stake underscores clearing centrality—OCC clears NYSE Arca and American Options. Cboe's global push (e.g., Europe/Asia expansions) hedges U.S. risks. Earnings transcripts reveal optimism: ICE's Jeffrey Sprecher touted tokenized NYSE securities; Cboe's leadership eyes AI in mortgage tech.
Neutral stance: Reforms likely evolutionary, not revolutionary, favoring scale players. ICE and CBOE's $123B combined market cap undervalues options dominance (CBOE options DARTs up 20%+ YoY). Brokers resilient on core growth.
Investment Takeaway: Accumulate ICE/CBOE dips—target 10-15% upside on reform clarity. Monitor roundtable outcomes (Q2 2026?), Q1 volumes, and SEC fee filings. Risks: Delayed approvals, UK/EU CCP recognition for OCC. Watch IBKR's crypto/options synergy and SCHW's spot BTC/ETH launch.