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Cboe Global Markets finalizes acquisition of BIDS Trading



Market operator and global trading solutions provider Cboe Global Markets has announced the completion of its acquisition of BIDS Trading, a registered broker-dealer and the operator of the BIDS Alternative Trading System (ATS), the largest block-trading ATS by volume in the US.

With the recent acquisition, Cboe gains a competitive footing in the off-exchange segment of the US equities market, which now accounts for over 40 % of overall US equities trading volume. The acquisition of BIDS Trading also allows Cboe to expand its global footprint and diversify its product and service offerings in markets beyond US equities and options.

Prior to the acquisition Cboe and BIDS Trading had a successful partnership in Europe, which began in 2016 with the creation of Cboe LIS for European equities block trading. Cboe LIS has grown into largest block trading platforms in Europe, accounting for around €240 million in average daily volume.

acquisition

Cboe Global Markets Chairman, President and CEO Ed Tilly said:

Edward T. Tilly
Edward T. Tilly

Through our successful collaboration on Cboe LIS, Cboe and BIDS Trading have established a proven track record in delivering best-in-class block trading capabilities for European equities. We are excited to have Cboe’s reach extend into the off-exchange segment of the U.S. equity markets through its ownership of BIDS Trading, and to broaden our ability to potentially expand into other asset classes and geographies as well. I am pleased to welcome the entire BIDS Trading team to Cboe.

BIDS ATS will remain independently managed and operated trading venue, separate from and not integrated with the Cboe US securities exchanges. Trading Chief Executive Officer Tim Mahoney will keep leading BIDS Trading as an independent business within Cboe Global Markets, reporting into an independent committee of the board of Cboe Global Markets.

BIDS Trading CEO Tim Mahoney said:

We have had a long and fruitful relationship with Cboe and have achieved remarkable success with Cboe LIS in Europe and we are excited by the additional opportunities and benefits that this acquisition could bring to BIDS Trading subscribers and sponsored users. We look forward to becoming a part of the Cboe Global Markets family and continuing to build on our history of successful innovation.

The terms of the acquisition were not disclosed. The company stated that the purchase price is not material from a financial perspective. BIDS Trading has generated around $41 million in net revenue over the last 12 months ending September 30, 2020. Cboe also said that it expects the acquisition of BIDS Trading to be immediately accretive to the company’s earnings, contributing adjusted earnings per share of approximately $0.05 – $0.06 in 2021.

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Cboe Global Markets finalizes acquisition of BIDS Trading

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