Cboe Global Markets, Inc announced it has entered into a definitive agreement to acquire Chi-X Asia Pacific Holdings, Ltd. (Chi-X Asia Pacific), an alternative market operator and provider of innovative market solutions, from JC Flowers & Co LLC. This acquisition will provide Cboe with a single point of entry into two key capital markets – Australia and Japan – to help enable it to expand its global equities business into the Asia Pacific, bring other products and services to the region, and further expand access to its unique proprietary product suite in the region. The transaction is expected to close in the second or third quarter of 2021, subject to regulatory review and other customary closing conditions.
Ed Tilly, Chairman, President and CEO at Cboe Global Markets, said; “With the planned acquisition of Chi-X Asia Pacific, we continue to execute on our growth strategy by broadening our geographic and asset class presence while enabling the further extension of our product offerings to our global network of customers. This is an exciting investment in attractive, growing markets that will complement our North American and European operations and provide a foothold in the key Asia Pacific region, positioning us to become a truly global marketplace for our customers.
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In a short number of years, the Chi-X Asia Pacific team has built their business into one of the largest market operators in the Asia Pacific. We look forward to working with them to accelerate the company’s further growth, building on our shared cultures of innovation and customer-first approach as we aim to bring greater choice to investors in the Asia Pacific.”
David Howson, currently President of Cboe’s European operations will lead the company’s business expansion into the region and has been promoted to President, Europe and Asia Pacific. Mr Howson will work closely with the global Cboe team and with the Chi-X Asia Pacific local management teams led by Vic Jokovic, Chief Executive Officer at Chi-X Australia and Toru Irokawa, Representative Director and President at Chi-X Japan, who will continue to lead their businesses.
Cboe plans to leverage Chi-X Asia Pacific’s expansive presence in Asia Pacific and bring to the region BIDS Trading’s industry-leading block trading capabilities. With BIDS’ current network covering major North American and European equities markets, the addition of Asia Pacific equities is expected to create a global block trading platform to serve a broader base of customers. Cboe also expects to enhance investor access to other products and services. In particular, Chi-X Asia Pacific is expected to provide an expanded distribution network enabling Cboe to further offer its unique proprietary products to clients in Australia and Japan.
This deal also creates an opportunity for Cboe to become the global leader in equities market data, offering comprehensive data from most major markets around the world including the U.S., Canada, Australia, Japan and 15 European countries.