- Cboe Digital and its partners committed to bringing trusted,
transparent, regulatory-first approach to digital assets
- Investor partners to receive equity minority ownership stake,
committed to development of Cboe Digital
- Aim to leverage Cboe's experience as a global market operator
and expertise of partner firms to create foundation for Cboe
Digital that will help it play a role in evolving digital asset
ecosystem globally
CHICAGO, Nov. 29,
2022 /PRNewswire/ -- Cboe Global Markets, Inc. (Cboe:
CBOE), a leading provider of global market infrastructure and
tradable products, announced it has completed the syndication of
minority equity interests with a group of thirteen firms becoming
investor partners in the Cboe Digital business.
The investors represent a broad and diverse range of market
participants, including leading retail and institutional
intermediaries, liquidity providers and brokers, including B2C2,
DRW, Galaxy Digital, GSR, Hidden Road, IMC, Interactive Brokers,
Jane Street, Jump
Crypto, Robinhood, Susquehanna International Group,
tastyworks and Virtu Financial. Through their equity ownership,
each firm will directly benefit from the growth of Cboe Digital and
close strategic and commercial alignment. The group of investor
partners join a roster of commercial partner firms supporting the
Cboe Digital business.
"We are pleased to have this group of investor partners joining
us as equity owners of Cboe Digital, with many of them already
fully onboarded to the Cboe Digital platform and the remainder
expected to be completed in the coming months," said John Palmer, President of Cboe Digital. "Each of
these partners share Cboe's deep commitment to bringing a trusted,
regulatory-first approach to the digital asset space. The time is
right for the Cboe Digital model in the digital asset space, and we
look forward to leveraging the combined expertise of these firms as
we work together to grow, shape and define this asset class to
benefit market participants across the globe."
"Cboe Digital's foundation is based on the core tenets of a
trusted financial exchange – transparency, regulatory oversight,
and customer protection – underpinned by responsible innovation and
the value of an intermediary-driven model," said John Deters, Chief Strategy Officer, Cboe Global
Markets. "Together with our partner firms, we will look to explore
opportunities across digitization, including discovering new areas
of tradable products specific to managing digital asset risk,
building new digital technology in a safe and compliant way, and
helping craft the future of digital assets with proven market
expertise and regulatory experience, which we believe will help the
space mature and ultimately grow."
Additionally, as part of its operation of the Cboe Digital
business, Cboe plans to form a Digital Advisory Committee comprised
of a cross-section of investor and commercial partner firms. The
committee will be tasked with advising Cboe on the ongoing
development of the Cboe Digital spot and derivatives markets, and
more broadly, the digital asset space. Cboe plans to leverage the
engagement and collaboration with these market participants to help
accelerate growth of Cboe Digital as a resilient, trusted and
transparent digital asset venue.
Cboe Digital (formerly ErisX) operates a spot market,
derivatives market and clearing platform, and has plans to develop
and distribute a range of digital asset data products, subject to
regulatory approval. Using market data based fundamentally on
actionable bid and offer prices from the spot crypto
market, Cboe Digital plans to develop a benchmark data stream to
help market participants evaluate the appropriateness of
crypto execution prices.
Cboe Digital is committed to providing a digital asset market
rooted in the exchange principles of transparency and regulatory
compliance, supported by a network of intermediaries, providing
client-driven solutions that help institutions fully embrace this
emerging asset class. Digital assets are globally recognized and
are expected to continue to benefit from a regulated derivatives
market and central clearing to help mitigate counterparty risk —
providing more efficient price formation, additional hedging tools,
enhanced transparency, and deeper liquidity. Cboe believes meeting
the demand for trading digital assets with the advantages of
exchange trading is beneficial for all investors, and
intermediaries have a key role to play in the ongoing development
of Cboe Digital spot and derivatives markets.
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, FX, and digital assets, across North America, Europe and Asia
Pacific. To learn more, visit www.cboe.com.
About Cboe Digital
Cboe Digital offers individuals and institutions a single,
innovative platform to access crypto spot and futures
markets. By combining professional tools, advanced technology,
sophisticated regulatory oversight, and a diverse product set, Cboe
Digital offers compliant, capital markets friendly workflows to
digital market participants. Backed by some of the world's largest
trading firms and financial institutions, Cboe Digital brings
transparency and reliability to the digital asset class.
Cboe Digital Futures are offered through Cboe Digital Exchange,
LLC, a Commodity Futures Trading Commission (CFTC) registered
Designated Contract Market (DCM) and Cboe Clear Digital, LLC, a
registered Derivatives Clearing Organization (DCO). The CFTC does
not have regulatory oversight authority over virtual currency
products including spot market trading of virtual currencies. Cboe
Digital's Spot Market is not licensed, approved or registered with
the CFTC and transactions on the Cboe Digital Spot Market are not
subject to CFTC rules, regulations or regulatory oversight. Cboe
Digital Spot Market may be subject to certain state licensing
requirements and operates in NY pursuant to Cboe Clear Digital
license to engage in virtual currency business activity by the
New York State Department of
Financial Services. Cboe Digital and the Cboe Digital logo are
trademarks of the Cboe Global Markets Group of companies. To learn
more, visit www.cboedigital.com.
Cboe Media Contacts
|
Cboe Analyst Contact
|
|
|
Angela Tu
|
Jessica Darmoni
|
Kenneth Hill, CFA
|
+1-646-856-8734
|
+1-312-756-8716
|
+1-312-786-7559
|
atu@cboe.com
|
jdarmoni@cboe.com
|
khill@cboe.com
|
CBOE-C
Cboe® and Cboe Global Markets® are registered trademarks of
Cboe Exchange, Inc. 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
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that involve a number of risks and uncertainties. You can identify
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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
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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 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
or changes in tax regimes; our ability to protect our systems and
communication networks from security risks, cybersecurity risks,
insider threats and unauthorized disclosure of confidential
information; our ability to attract and retain skilled management
and other personnel, including compensation inflation; increasing
competition by foreign and domestic entities; our dependence on and
exposure to risk from third parties; fluctuations to currency
exchange rates; factors that impact the quality and integrity of
our indices; the impact of the novel coronavirus ("COVID-19")
pandemic; 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
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; the accuracy of our estimates and expectations; litigation
risks and other liabilities; and operating a digital asset business
and clearinghouse, including the expected benefits of our ErisX
acquisition, subsequently rebranded to Cboe Digital, cybercrime,
changes in digital asset regulation, losses due to digital asset
custody, and fluctuations in digital asset prices. 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, 2021 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.
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SOURCE Cboe Global Markets, Inc.