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Hello, and welcome to the Cboe Global Markets 2020 Third Quarter Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, today's event is being recorded.
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Thank you, Debbie. Good morning, and thank you for joining us today. I hope everyone continues to remain safe and healthy, as the pandemic continues to take its toll around the globe. I'm pleased to report solid financial results for the third quarter of 2020 at Cboe Global Markets, where we continue to advance our strategic growth plan to strengthen our product line across asset classes and geographies, broaden our customer reach, diversify our business mix, with recurring revenue and leverage our superior technology. Thanks to this ongoing disciplined approach, we were well positioned to navigate market conditions that left many institutional investors on the sidelines.
Much as we saw in the previous quarter, our third quarter results were driven by increased trading volumes in cash equities and multi-listed options, fueled by growth in retail trading. We also saw continued growth in our recurring proprietary non-transactional revenues.
Last quarter, I highlighted our strategy to strengthen our U.S. Equities business through new markets and new trading mechanisms, such as retail priority and periodic auctions. Growing retail participation helped drive a 26% year-over-year increase in U.S. equities trading for the quarter.
Volume and retail priority orders which we launched last year on Cboe Edgx, represented nearly 23% of total volume and helped propel the exchange to record market share last quarter of 6.8%. We believe we are uniquely positioned to define the state of the art in Equities trading through product and market innovation.
We took significant steps toward realizing that vision with the third quarter completion of our acquisition of MATCHNow and with our recently announced plans to acquire BIDS Trading. MATCHNow you will recall is Canada's largest alternative trading system.
I'm pleased to say, we are well on track with its integration, which enables us to expand our equities offering, achieve incremental scale and reach new market participants. Importantly, we also see MATCHNow as a toehold in the Canadian market for additional Cboe products and services.
We were delighted this month to announce our planned acquisition of BIDS Trading, which is expected to provide us with meaningful presence in the substantial off exchange U.S. equities market. We received great feedback on the deal from our customers and couldn't be more excited about the opportunities ahead in this growing space.
Our successful and innovative partnership with BIDS Trading began in 2016 with the launch of Cboe LIS now one of the largest block trading platforms in Europe. We've since enjoyed a collaborative and fruitful relationship with Tim Mahoney and the entire BIDS team and are pleased that they will remain part of the Cboe family.
While BIDS will continue to operate as an independently managed venue separate from our U.S. securities exchanges, we have great faith in their expertise and ability to execute on our shared vision once the deal is approved.
Similar to MATCHNow, we view the value of the BIDS transaction in terms of the significant new dimension it brings to equity trading at Cboe and for how it enables us to grow our entire product ecosystem. In addition to expanding our equity trading market and customer base, the acquisition of BIDS and its leading block trading platform provides opportunities for us to bring off exchange trading and services to other products and geographies including Canada.
Turning now to multi-listed options trading. This is a fitting point for me to take a moment to note the passing of Joe Sullivan, Cboe's Founding President. His tireless advocacy for a listed options market, helped launch Cboe and with it the entire options industry 47 years ago. Joe was an amazing visionary and I echo my condolences to his family here on behalf of our entire company.
Cboe has since become known for other products and services, but we have always remained committed to being a leader in the equity options space. Our recent initiatives have focused on accessing and engaging in broad market through our acquisitions of Hanweck, FT Options and Trade Alert, the expansion of our options institute offering and the introduction of products for sophisticated retail market participants.
In the third quarter, retail trading led the way to a 42% increase in equity options trading at Cboe with smaller short-term positioning trades. Each of our four options exchanges are year-over-year increases in average daily volume. Zero broker commissions and free trading apps ushered in a new generation of retail traders, who continue to contribute to record volumes in 2020.
Conversely, market uncertainty continues to dampen institutional trading. The ripple effects of the COVID-19 virus continued to be felt as the economy looked to stabilize during the third quarter. Business is reopened and consumers slowly began resuming some semblance of typical activity. But the path forward was and still is marked with massive uncertainty, the lack of progress in negotiations to extend fiscal stimulus programs, combined with the risk of additional shutdowns due to rising COVID-19 cases and the upcoming U.S. elections, kept the VIX index elevated throughout the third quarter when it averaged 25.8, 8.5 points over its five -year average.
Election uncertainty continues to be seen in the VIX futures term structure. On August 31, the spread between the September and October VIX futures was more than double the previous three presidential elections. In times of heightened uncertainty, education becomes a key driver to investor adoption. We revamped -- I'm sorry, we ramped up our marketing and educational efforts accordingly.
Third quarter initiatives included the launch of product-focused webinars, which we plan to expand in 2021, an ongoing revamp of our education website and enhanced learning tools to optimize investor understanding. And pilot testing of a new core derivatives education curriculum, which we plan to launch in the first quarter of 2021.
Additionally, our experienced team continues to work closely with customers, so they may better understand how to leverage our diverse product set and trading resources to navigate changing market conditions. We also continued in the third quarter to enhance our proprietary index product set, most notably with the August 9 launch of Mini VIX futures.
The smaller VIX futures contract is designed to provide additional flexibility and volatility risk management and greater precision, when allocating among smaller managed accounts. Mini VIX futures were launched in response to market demand and the growing opportunity we saw among sophisticated retail market participants.
Since launch, we surpassed one million contracts traded and fully expect adoption to continue to grow as customers now have access to a smaller notional contract. We have rolled out ongoing marketing and education programs aimed at helping retail participants, better understand how to leverage the benefits of Mini VIX futures trading.
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