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Cboe Global Markets finalises acquisition of Chi-X Asia Pacific



Cboe Global Markets, Inc. has completed its acquisition of Chi-X Asia Pacific Holdings, Ltd, an alternative market operator and provider of market solutions. With this move, Cboe benefits from an entrance into two of the world’s largest securities markets – Japan and Australia which allows the company to establish a significant presence in the Asia Pacific region for the first time.

Ed Tilly, Chairman, President and Chief Executive Officer at Cboe Global Markets, commented:

Edward T. Tilly
Edward T. Tilly

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. 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.

Chi-X Asia Pacific was acquired from J.C. Flowers & Co. LLC, the terms of the deal were not disclosed. Cboe noted in its announcement that “purchase price is not material from a financial perspective and is expected to be nominally accretive to the company’s adjusted earnings in 2021.” The transaction was funded with cash on hand and borrowings under its term loan credit agreement.

The acquisition of Chi-X Asia Pacific will allow Cboe to bring new trading solutions and services to Asia Pacific such as the block trading capabilities of BIDS Trading, which was acquired by Cboe in January this year. BIDS operates a large block trading ATS with its current network covering US, Europe and expanding into Canada. With the addition of Asia Pacific, Cboe expects to create a global block trading platform to serve a broader base of customers.

Acquisition, merger

In the announcement, Cboe revealed it plans to fully integrate Chi-X Asia Pacific into its existing global business operations and technology platforms. This process will begin with the integration of Chi-X Asia Pacific and BIDS. Cboe plans to migrate Chi-X Australia and Chi-X Japan its trading platform thereafter.

Toru Irokawa, Representative Director and President at Chi-X Japan, added:

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.

Cboe aims to expand investor access furter to its suite of products which includes US index options products based on the S&P 500 Index (SPX) and Cboe Volatility Index (VIX) – to meet growing investor demand globally for US-based derivatives products. The company also plans to extend trading hours for SPX and VIX options to almost 24 hours a day from 21 November.

Chi-X Asia Pacific has offices in Australia, Japan, Hong Kong and the Philippines. Chi-X Australia is the country’s second largest securities exchange and offers trading in all Australian-listed securities, as well as the exclusive trading of CXA quoted warrants and ETFs. Chi-X Japan, a trading system for Japanese equities, is the third largest equities venue. It offers four trading books, including both displayed and non-displayed mechanisms.

Chi-X Asia Pacific registered $26 million in net revenue in 2020, reflecting a 26% rise compared to the prior year, with non-transactional revenue making up 67% of the overall 2020 net revenue.

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Cboe Global Markets finalises acquisition of Chi-X Asia Pacific

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