CHICAGO, June 30, 2021 /PRNewswire/ -- 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.
"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.
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Media
Contacts
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Analyst
Contact
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Angela
Tu
+1-646-856-8734
atu@cboe.com
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Tim
Cave
+44 (0)
7593-506-719
tcave@cboe.com
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Debbie
Koopman
+1-312-786-7136
koopman@cboe.com
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CBOE-C
CBOE-OE
Cboe®, Cboe Global Markets®, Cboe Volatility Index®, and VIX®
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
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SOURCE Cboe Global Markets, Inc.