Cboe Global Markets Completes Acquisition of Chi-X Asia Pacific
PR90408
CHICAGO, July 1, 2021 /PRNewswire=KYODO JBN/ --
- Transaction is another step in Cboe's strategy to build one of the world's
largest global derivatives and securities trading networks
- With a presence in Asia Pacific, Cboe expects to expand its global equities
and market data businesses, broaden distribution of its proprietary products,
as well as bring other new trading solutions and services to the region
- Chi-X Asia Pacific planned to be fully integrated into Cboe's existing global
business operations and technology platforms
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market
infrastructure and tradable products, today announced it has completed its
acquisition of Chi-X Asia Pacific Holdings, Ltd. (Chi-X Asia Pacific), an
alternative market operator and provider of innovative market solutions.
Through ownership of Chi-X Asia Pacific, Cboe gains entrance into two of the
world's largest securities markets -- Japan and Australia -- to establish a
significant presence in the Asia Pacific region for the first time.
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"Welcoming Chi-X Asia Pacific to the Cboe network represents an exciting
milestone in Cboe's growth story and another important step in our vision to
become a truly global marketplace for our customers," said Ed Tilly, Chairman,
President and Chief Executive Officer at Cboe Global Markets. "The team at
Chi-X Asia Pacific shares Cboe's dedication to defining markets through
innovative products, services and trading solutions. We look forward to the
opportunities ahead as we welcome the Chi-X team to the Cboe community and work
together to accelerate Chi-X Asia Pacific's further growth and extend Cboe's
global footprint."
Through Chi-X Asia Pacific, Cboe now has the opportunity to bring new trading
solutions and services to Asia Pacific, including extending the
industry-leading block trading capabilities of BIDS Trading to the region.
BIDS, acquired by Cboe in January 2021, operates the largest block trading ATS
by volume in the U.S., and one of the largest block trading platforms in
Europe. With BIDS' current network covering U.S., Europe and expanding into
Canada, the addition of Asia Pacific is expected to create a global block
trading platform to serve an even broader base of customers.
Cboe plans to fully integrate Chi-X Asia Pacific into its existing global
business operations and technology platforms, beginning with the integration of
Chi-X Asia Pacific and BIDS. Chi-X Australia and Chi-X Japan are planned to
migrate to Cboe's state-of-the-art trading platform thereafter. Providing one,
unified technology platform will help provide market participants greater
access to Cboe's diverse product set and more efficiency, resiliency and
functionality when trading across Cboe's markets.
Vic Jokovic, Chief Executive Officer at Chi-X Australia, said: "Through the
years, Chi-X Australia has established itself as the country's most innovative
market operator, consistently delivering best-in-class trading solutions,
technology and customer service. We couldn't be more excited for the future of
our exchange as we join the Cboe team and leverage its global resources to
further our growth and develop new products and services that will benefit the
Australian markets."
Toru Irokawa, Representative Director and President at Chi-X Japan, said:
"Chi-X Japan has gained tremendous success by providing superior service and
trading solutions that help deliver best execution and significant cost-savings
for retail and institutional investors. We look forward to the many
opportunities that this acquisition will create and expect Cboe to further
propel our growth, as well as enhance the competitive landscape to help bring
greater efficiency and resiliency to the Japanese markets."
Chi-X Asia Pacific positions Cboe to expand its global equities business into
Asia Pacific and build an unparalleled, high value global market data business
that is expected to offer data from major markets around the world, including
the U.S., Canada, Australia, Japan and 18 European countries. In addition, Cboe
plans to further broaden investor access to its unique suite of proprietary
products -- including U.S. index options products based on the S&P 500 Index
(SPX) and Cboe Volatility Index (VIX) -- to meet growing investor demand
globally for U.S.-based derivatives products. Cboe plans to extend trading
hours (
) for SPX and VIX options to nearly 24 hours a day beginning November 21,
subject to regulatory approval.
Chi-X Asia Pacific is one of the most successful alternative market operators
in Asia Pacific, with offices in Australia, Japan, Hong Kong and the
Philippines. Chi-X Australia (CXA), the country's second largest securities
exchange achieving an 18.6 percent total market share1, offers trading in all
Australian-listed securities, as well as the exclusive trading of CXA quoted
warrants and ETFs. Chi-X Japan (CXJ), a leading proprietary trading system for
Japanese equities and third largest equities venue in the country with a 2.5
percent lit market share2, offers four trading books, including both displayed
and non-displayed mechanisms.
Cboe acquired Chi-X Asia Pacific from J.C. Flowers & Co. LLC. Terms of the deal
were not disclosed, however the company noted that the purchase price is not
material from a financial perspective and is expected to be nominally accretive
to the company's adjusted earnings in 2021. Cboe funded the transaction with
cash on hand and borrowings under its term loan credit agreement. Chi-X Asia
Pacific generated approximately USD 26 million in net revenue for the 12 months
ended December 31, 2020, reflecting a 26 percent growth rate compared to the
prior year, with non-transactional revenue comprising approximately 67 percent
of the overall 2020 net revenue. For additional background information on Chi-X
Asia Pacific, see the slide deck available under events and presentations on
Cboe's Investor Relations website at
http://ir.cboe.com/events-and-presentations.
Legal advisors to Cboe Global Markets on the transaction were Sidley Austin LLP
(U.S. and Hong Kong), King & Wood Mallesons (Australia), Nagashima Ohno &
Tsunematsu (Japan) and SyCip Salazar Hernandez & Gatmaitan (Philippines), with
BofA Securities serving as financial advisor.
About Cboe Global Markets, Inc.
Cboe Global Markets (Cboe: CBOE), a leading provider of market infrastructure
and tradable products, delivers cutting-edge trading, clearing and investment
solutions to market participants around the world. The company is committed to
operating a trusted, inclusive global marketplace, providing leading products,
technology and data solutions that enable participants to define a sustainable
financial future. Cboe provides trading solutions and products in multiple
asset classes, including equities, derivatives and FX, across North America,
Europe and Asia Pacific. To learn more, visit www.cboe.com.
About Chi-X Asia Pacific Holdings, Ltd.
Chi-X Asia Pacific Holdings, Ltd. ("Chi-X Asia Pacific") is a leader in driving
marketplace innovation across the Asia-Pacific region. For over a decade the
business has been operating trading venues and generating pioneering products
and services for the benefit of financial markets and the global trading
community. The company believes that modern competition from technology-driven
markets increases overall market volumes and improves investor performance,
providing benefits to all participants. As an alternative market operator,
Chi-X Asia Pacific operates market centers two of the Asia-Pacific region's key
securities trading centers in Australia and Japan, while its Chi-TechTM
technology services units provide technology to its business. The company
maintains offices in Sydney, Tokyo, Hong Kong and Manila. For more
information, visit www.chi-x.com.
Media Contacts Analyst Contact
Angela Tu Tim Cave Debbie Koopman
+1-646-856-8734 44 (0) 7593-506-719 +1-312-786-7136
atu@cboe.com Tim Cave tcave@cboe.com koopman@cboe.com
CBOE-C
CBOE-OE
Cboe(R), Cboe Global Markets(R), Cboe Volatility Index(R), and VIX(R) are
registered trademarks of Cboe Exchange, Inc. Chi-X Asia Pacific, Chi-X
Australia and Chi-X Japan are registered trademarks of Chi-X Asia Pacific
Holdings, Ltd. All other trademarks and service marks are the property of their
respective owners.
Cautionary Statements Regarding Forward-Looking Information
This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 that involve a number of
risks and uncertainties. You can identify these statements by forward-looking
words such as "may," "might," "should," "expect," "plan," "anticipate,"
"believe," "estimate," "predict," "potential" or "continue," and the negative
of these terms and other comparable terminology. All statements that reflect
our expectations, assumptions or projections about the future other than
statements of historical fact are forward-looking statements. These
forward-looking statements, which are subject to known and unknown risks,
uncertainties and assumptions about us, may include projections of our future
financial performance based on our growth strategies and anticipated trends in
our business. These statements are only predictions based on our current
expectations and projections about future events. There are important factors
that could cause our actual results, level of activity, performance or
achievements to differ materially from those expressed or implied by the
forward-looking statements.
We operate in a very competitive and rapidly changing environment. New risks
and uncertainties emerge from time to time, and it is not possible to predict
all risks and uncertainties, nor can we assess the impact of all factors on our
business or the extent to which any factor, or combination of factors, may
cause actual results to differ materially from those contained in any
forward-looking statements.
Some factors that could cause actual results to differ include: the impact of
the novel coronavirus ("COVID-19") pandemic, including changes to trading
behavior broadly in the market; the loss of our right to exclusively list and
trade certain index options and futures products; economic, political and
market conditions; compliance with legal and regulatory obligations; price
competition and consolidation in our industry; decreases in trading or clearing
volumes, market data fees or a shift in the mix of products traded on our
exchanges; legislative or regulatory changes; our ability to protect our
systems and communication networks from security risks, cybersecurity risks,
insider threats and unauthorized disclosure of confidential information;
increasing competition by foreign and domestic entities; our dependence on and
exposure to risk from third parties; fluctuations to currency exchange rates;
our index providers' ability to maintain the quality and integrity of their
indices and to perform under our agreements; our ability to operate our
business without violating the intellectual property rights of others and the
costs associated with protecting our intellectual property rights; our ability
to attract and retain skilled management and other personnel; our ability to
minimize the risks, including our credit and default risks, associated with
operating a European clearinghouse; our ability to accommodate trading and
clearing volume and transaction traffic, including significant increases,
without failure or degradation of performance of our systems; misconduct by
those who use our markets or our products or for whom we clear transactions;
challenges to our use of open source software code; our ability to meet our
compliance obligations, including managing potential conflicts between our
regulatory responsibilities and our for-profit status; our ability to maintain
BIDS Trading as an independently managed and operated trading venue, separate
from and not integrated with our registered national securities exchanges;
damage to our reputation; the ability of our compliance and risk management
methods to effectively monitor and manage our risks; our ability to manage our
growth and strategic acquisitions or alliances effectively; restrictions
imposed by our debt obligations and our ability to make payments on or
refinance our debt obligations; our ability to maintain an investment grade
credit rating; impairment of our goodwill, long-lived assets, investments or
intangible assets; and the accuracy of our estimates and expectations. More
detailed information about factors that may affect our actual results to differ
may be found in our filings with the SEC, including in our Annual Report on
Form 10-K for the year ended December 31, 2020 and other filings made from time
to time with the SEC.
We do not undertake, and we expressly disclaim, any duty to update any
forward-looking statement whether as a result of new information, future events
or otherwise, except as required by law. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of the
date hereof.
1Source: Australian Securities and Investments Commission equity market data.
Based on average daily value traded 2021 YTD through May
2Based on lit market volume 2021 YTD through May
SOURCE: Cboe Global Markets, Inc.
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