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
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.
