Cboe Expands Into Canada And The Digital Asset Market Via Acquisitions

Since 1973, Cboe Global Markets Inc. CBOE has been creating products, tools, and services for the markets. 

Many of the world’s options traders owe the rise of their profession, in part, to the global exchange operator, which was responsible for building the first marketplace for listed options. The Chicago Board of Options Exchange remains one of the world’s largest, and its proprietary Volatility Index® (VIX), dubbed “the Fear Index,” has become a go-to for gauging market sentiment. 

Cboe’s track record of “market firsts” is significant. Despite this, the operator seems determined to maintain its presence as a world leader in providing market-defining products and services, and it has arguably kickstarted the fortification of its status via a string of acquisitions that extend over both geographies and products. 

Specifically, Cboe reports completing the acquisition of ErisX, an operator of a U.S.-based digital asset spot market, a regulated futures exchange and a regulated clearinghouse. Additionally, Cboe announced completing the acquisition of NEO, a fintech organization comprised of a fully registered Canadian securities exchange (NEO Exchange) with a product and services set ranging from corporate listings to cash equities trading and a non-listed securities distribution platform (NEO Connect). 

What Do These Acquisitions Mean For Cboe?

The NEO expansion represents an expansion across both markets and geographies for Cboe. As an established player in the U.S., Cboe now looks to be targeting the Canadian market as a stepping stone for furthering its growth and provisions. 

NEO Exchange is a “next-generation stock exchange focused on fairness, liquidity, transparency and efficiency that brings together investors and capital raisers, serving as a central force driving the Canadian capital markets forward”. NEO Connect provides a distribution platform supporting mutual funds, private funds and private corporates. With ownership of NEO, Cboe expects to provide an enhanced Canadian equities offering, bringing global infrastructure and market expertise to further grow Canada as a hub for global equities trading.  

"With NEO, we are creating another connection across borders through our network of trusted markets, enabling Canadian clients to pursue global growth opportunities through innovation, enhanced technology and access to new ways of trading and listing,” Cboe Global Markets Chairman and CEO Ed Tilly said.

Additionally, ownership of ErisX allows Cboe to enter the digital asset space and derivatives marketplaces through a digital-first platform developed with industry partners to focus on robust regulatory compliance, data and transparency. 

Speaking of the acquisition, Tilly said: "Adding ErisX to the Cboe network is another exciting chapter in Cboe's growth story. We see enormous potential in the digital asset market and are excited to apply our blueprint of success to this burgeoning asset class." 

Click for more details on the NEO Exchange and ErisX acquisitions.  

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