May 2 (Reuters) - Derivatives exchange Cboe Global Markets CBOE.Z reported a record first-quarter profit on Friday as heightened market volatility fueled strong growth in options trading.

Exchanges thrive during times of market turmoil as trading volumes surge and investors hedge their portfolios to manage risk, driving up transaction fees for companies such as Cboe.

Rivals Intercontinental Exchange ICE.N and CME Group CME.O also had record-breaking quarters as a barrage of tariff-related headlines and the emergence of Chinese startup DeepSeek's low-cost AI model drove up market volatility.

Cboe's options trading business revenue jumped 15% to a record $352.4 million, while Europe and Asia Pacific revenue climbed 18% to an all-time high of $64.1 million.

"The second quarter is off to a robust start, and we look forward to ... providing clients with a diverse toolkit of products for any market environment," outgoing CEO Fredric Tomczyk said.

Excluding one-time costs, Cboe earned a record $2.50 per share for the quarter, beating analysts' expectations of $2.36, according to estimates compiled by LSEG.

Revenue jumped 13% to a quarterly record of $565.2 million, beating expectations of $560 million.

Cboe now expects revenue growth in the mid- to high-single-digit percentage range this year, up from its previous forecast of mid-single-digit growth.

NEW GUARD

Cboe late on Thursday named rival CME Group's CME.O former top boss Craig Donohue as its new CEO, effective May 7.

He succeeds Tomczyk, who has been at the helm since September 2023 and steered Cboe through a challenging time after the abrupt departure of former CEO Edward Tilly.

Cboe shares have risen 13% this year, underperforming peers CME and NYSE-parent Intercontinental Exchange ICE.N.

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Devika Syamnath)

((ArasuKannagi.Basil@thomsonreuters.com;))