Whether
retail
investors
profit
from
their
bets
on
GameStop
and
AMC
Entertainment
or
not,
one
group
of
companies
looks
set
to
cash
in
from
the
frenzied
trading:
stock
exchanges.
So-called
meme
stocks,
which
gained
popularity
through
social
media
platforms
like
Reddit
and
Twitter
(or
X),
have
attracted
retail
investors
looking
to
make
a
quick
profit.
These
traders
typically
buy
and
sell
stocks
and
options,
a
derivative,
through
their
broker
on
a
stock
exchange.
The
following
global
companies,
among
the
world’s
10
largest
listed
stock
exchanges,
have
previously
acknowledged
a
boost
to
earnings
from
the
retail
investor
boom,
and
some
have
even
cited
measures
designed
to
encourage
them
further.
Deutsche
Borse
AG
Deutsche
Börse
,
which
owns
both
the
Frankfurt
Stock
Exchange
and
the
Eurex
derivatives
exchange,
has
previously
admitted
to
gaining
from
a
rise
in
retail
investor
activity.
“I
think
we
were
benefiting
a
lot
in
2020
and
2021
from
the
tailwinds
we
had
from
the
Corona
time
and
also
from
retail
investors
who
were
trading
…
heavily,”
said
Eric
Leupold,
managing
director
and
head
of
cash
market
at
Deutsche
Börse,
on
an
earnings
call
in
November
2023.
DB1-FF
5Y
line
Deutsche
Bank
,
Germany’s
largest
investment
bank,
expects
shares
of
the
stock
exchange
owner
to
rise
by
21%
to
214
euros
($231.45)
over
the
next
12
months.
The
stock
is
traded
in
Germany,
the
U.S.,
the
U.K.,
Switzerland,
and
Italy.
”
Deutsche
Boerse
delivered
good
[first
quarter
2024]
results,
and
it
is
well
on
track
to
(over)achieve
its
2024
guidance,”
Deutsche
Bank
analyst
Benjamin
Goy
said
in
a
note
to
clients
on
Apr.
25.
“Higher-for-longer
rates
are
good
for
its
net
interest
income
as
well
as
its
fixed
income
derivatives
franchise,
and
volatility
made
a
comeback
in
April.
Moreover,
many
secular
growth
initiatives
…
are
performing
well.”
Euronext
The
pan-European
stock
exchange
that
operates
trading
venues
in
Amsterdam,
Brussels,
Dublin,
Lisbon,
Milan,
Oslo
and
Paris,
has
been
one
of
the
most
vocal
in
targeting
the
retail
investor
market.
Euronext
Chief
Executive
Stéphane
Boujna
said
in
2021
that
pandemic-era
remote
working
had
contributed
to
the
doubling
of
trading
activity
by
retail
investors.
“For
retail
investors,
we
will
soon
propose
a
simplified
access
to
trading
of
a
wide
range
of
pan-European
and
US
securities,
leveraging
on
our
existing
[multilateral
trading
facilities]
in
Italy,
the
Global
Equity
Markets.
We
will
simplify,
broaden
access
to
trading
of
non-domestic
securities.
Through
this
new
innovative
offer,
we
will
offer
retail
investors
a
true
one-stop-shop
experience
for
equity
trading,”
he
said
in
May
2023.
The
consensus
price
target
of
19
analysts
polled
by
FactSet
points
to
a
13%
upside
for
the
exchange’s
own
stock.
The
stock
is
traded
in
France,
U.S.,
U.K.
and
Portugal.
Cboe
Global
Markets
Cboe
,
one
of
the
largest
options
exchange
operators
in
the
U.S.
and
Europe,
has
also
made
concerted
efforts
to
encourage
retail
investor
participation.
David
Howson,
an
executive
vice
president
at
Cboe
Global
Markets,
said
earlier
this
year
that
as
some
European
regulators
ban
the
marketing
of
derivates
such
as
CFDs,
retail
trading
activity
is
likely
to
move
towards
the
options
market.
“The
rise
of
retail
options
trading
is
another
secular
trend
we’re
excited
to
build
on
with
more
platforms
coming
online
for
index
options
trading
later
this
year,
giving
retail
investors
expanded
access
to
our
products,”
Howson
said
on
an
earnings
call
to
analysts
this
month.
Wall
Street
analysts
expect
Cboe
shares
to
rise
8.6%
over
the
next
12
months.
“The
quarter
could
mark
the
beginning
of
the
new
CBOE
profile,
one
that
has
more
stable
and
healthy
revenue
growth,
is
focused
on
margin
expansion
and
serious
about
capital
return,”
said
analysts
at
Oppenheimer
in
a
note
to
clients
on
May
6.
Intercontinental
Exchange
The
Intercontinental
Exchange
could
benefit
from
the
trading
frenzy,
according
to
Hannah
Gooch-Peters,
global
equity
investment
analyst
at
Sanlam
Investments.
ICE,
which
owns
the
New
York
Stock
Exchange
and
several
other
exchanges,
offers
trading
in
stocks,
bonds,
commodities,
currencies
and
derivatives.
The
company
earns
money
every
time
securities
trade
at
its
venues.
The
company
reported
its
biggest
revenue
and
profits
in
2021,
partly
due
to
heightened
volatility
in
financial
markets
and
the
meme
stock
trading
frenzy.
Will
trading
be
similar
to
2021?
Despite
the
rally
in
meme
stocks
this
week,
some
analysts
cautioned
that
it
is
unlikely
to
hit
the
levels
seen
in
2021.
“Do
we
think
more
retail
traders
can
jump
in
on
the
trend
in
the
coming
days?
Yes.
Do
we
think
this
is
a
repeat
of
2021?
No,
and
the
chances
we
reach
that
stage
are
low,”
said
Marco
Iachini,
senior
vice
president
of
research
at
Vanda.
