Cboe Expands Global Equities Business into APAC
The market operator and global trading solutions provider is growing its global derivatives and securities trading network with the acquisition of Chi-X Asia Pacific.
The acquisition from J.C. Flowers & Co, for an undisclosed sum, will allow Cboe 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, the company said in an announcement on Thursday.
Chi-X is an alternative market operator and provider of market solutions in Australia and Japan, and has technology service units based in Hong Kong and the Philippines, which provide technology solutions to its market centers and third-party partners.
Broader Access
Cboe plans to broaden investor access to its 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, the announcement said.
It will also extend trading hours for SPX and VIX options to nearly 24 hours a day from November 21, subject to regulatory approval.
APAC Growth
Chi-X Asia Pacific generated about $26 million in net revenue in 202, 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.
Chi-X Australia (CXA) is the country’s second-largest securities exchange, with an 18.6 percent market share, while Chi-X Japan (CXJ) is the third-largest equities venue in the country with a 2.5 percent lit market share.
