Cboe finalises EuroCCP acquisition, plans launch of Cboe Europe Derivatives for next year

Exchange holding company Cboe Global Markets, Inc. announced the finalization of the acquisition of pan-European equities clearing house EuroCCP. The acquisition paves the way for Cboe to launch its new Amsterdam-based futures and options market Cboe Europe Derivatives in the first half of 2021.

Currently, EuroCCP clears trades for 37 trading venues which makes up 95% of all equity trades executed on organised markets in Europe. Cboe aims to further expand this business and utilise the strengths of its pan-European network and pursue the development of derivatives trading and clearing capabilities in the region.

As part of the acquisition, EuroCCP put in place a committed credit facility of up to €1.5 billion as an important part of a number of new tools and procedures designed to strengthen the firm’s liquidity risk management framework and help ensure EuroCCP continues to meet liquidity requirements under the European Market Infrastructure Regulation (EMIR).

Ed Tilly, Chairman, President and Chief Executive Officer of Cboe Global Markets, said:

Edward T. Tilly

Edward T. Tilly

This acquisition is a significant milestone for our European business. Full ownership of a leading equities clearing house not only enhances our current European equities business, but also provides opportunities to diversify our business into trading and clearing derivatives in the region. We are delighted to welcome the EuroCCP team to Cboe Global Markets.

David Howson, President of Cboe Europe, said:

This deal marks the beginning of the next chapter for Cboe Europe and, together with EuroCCP, we couldn’t be more excited to further deliver on our pan-European mission by planning the launch of Cboe Europe Derivatives. We have listened to the needs of market participants and are designing this new market from a pan-European point-of-view, leveraging our global derivatives expertise, European equities footprint, and worldclass technology to build a more efficient equity derivatives market.

Cboe Global Markets

Cécile Nagel, Chief Executive Officer of EuroCCP, said:

Cécile Nagel, EuroCCP

Cécile Nagel

We believe this transaction positions EuroCCP for continued success. In addition to building out our derivatives clearing services, we see many opportunities to collaborate with Cboe to expand our product offering across asset classes. With our shared values and focus on innovation and client service, together with Cboe we can do even more to advance capital markets in Europe.

Cboe plans the launch of Cboe Europe Derivatives in the first half of 2021 which is expected to initially offer trading in equity futures and options based on six Cboe Europe Indices: the Cboe Eurozone 50, Cboe UK 100, Cboe Netherlands 25, Cboe Switzerland 20, Cboe Germany 30, and Cboe France 40 – all calculated using Cboe market data. Cboe plans to also add futures and options on additional European benchmarks later on, based on customer demand. EuroCCP will provide clearing services for Cboe’s platform.

Industry veteran Ade Cordell who has been in charge Cboe’s expansion into European derivatives since earlier this year, was appointed as President of Cboe NL. Cboe’s Netherlands-based exchange was launched in October 2019 and will be the future home to Cboe Europe Derivatives.

Ade Cordell, President of Cboe NL, said:

There is an opportunity to improve the existing European derivatives market structure and unlock its true potential through the creation of a transparent, efficient, lit pan-European market. Our panEuropean model will enable all market participants to access a modern derivatives market through a single access point, creating efficiencies in trading and clearing.

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