CHICAGO, Aug. 4, 2020 /PRNewswire/ -- Cboe
Global Markets, Inc. (Cboe: CBOE), one of the world's largest
exchange holding companies, today announced it has completed its
acquisition of MATCHNow, the largest equities alternative trading
system (ATS) in Canada.
Toronto-based MATCHNow is a
Canadian marketplace that offers execution for institutional,
proprietary and retail orders by combining frequent call matches
and continuous execution opportunities in a fully confidential
trading book. Founded in 2007, MATCHNow has grown to account for
nearly 65 percent of market share in total Canadian dark trading,
or approximately 7 percent in total Canadian equities
volume.1
With this acquisition, Cboe gains a foothold in a key global
capital market, while expanding the company's geographic presence
and diversifying the product capabilities of its equities business.
Following a proven playbook used to grow its European equities
business, Cboe plans to leverage its world-class technology,
product innovation and expertise in operating markets to build out
a more complete North American equities business.
Ed Tilly, Chairman, President and
Chief Executive Officer of Cboe Global Markets, said: "As a global
exchange operator with significant U.S. and European equities
marketplaces, we believe Cboe's core strengths will bolster
MATCHNow's ability to bring more choice and competition to the
Canadian marketplace. Adding MATCHNow to the Cboe roster is part of
our vision to create a broader North American equities platform,
helping Cboe deliver our innovative solutions to a wider customer
base. I am delighted to welcome Bryan
Blake and the entire MATCHNow team to Cboe and am excited by
the opportunities this deal can create."
MATCHNow shares Cboe's customer-first approach to providing
solutions that address real needs in the marketplace, including the
exploration of new order types that can help further enhance
liquidity. MATCHNow's Conditional Orders, which enable subscribers
to electronically indicate block size liquidity in MATCHNow, are
meeting market participants' demand for more choice and
flexibility, providing a valuable source of additional liquidity in
Canada's equities markets.
MATCHNow Chief Executive Officer Bryan
Blake, who joins Cboe as Vice President, Head of Canadian
Equities, said, "Cboe's legacy of innovation not only includes its
flagship products, but also its ability to create and develop new
markets and market models, many of which have grown to become some
of the largest, most-relied upon in the world. I couldn't be more
excited for MATCHNow's future as part of the Cboe team. Their
demonstrated experience will be essential to building out a
comprehensive equities platform in Canada and beyond."
For additional information on MATCHNow, visit
http://matchnow.ca/.
Cboe acquired MATCHNow from Virtu Financial, Inc. Terms of the
deal were not disclosed, however, the company noted that the
purchase price is not material from a financial perspective. The
acquisition is expected to be immediately accretive to earnings,
contributing approximately $0.01 to
earnings per share in 2020. MATCHNow is a profitable business
that generated over CAD10 million in
revenue in 2019.
RBC Capital Markets ran the transaction process for the MATCHNow
business. Cboe was represented by legal counsel at Blake, Cassels
& Graydon LLP.
About Cboe Global Markets, Inc.
Cboe Global Markets (Cboe: CBOE) is one of the world's largest
exchange holding companies, offering cutting-edge trading and
investment solutions to investors around the world. The company is
committed to defining markets to benefit its participants and drive
the global marketplace forward through product innovation, leading
edge technology and seamless trading solutions.
The company offers trading across a diverse range of products in
multiple asset classes and geographies, including options, futures,
U.S. and European equities, exchange-traded products (ETPs), global
foreign exchange (FX) and volatility products based on the Cboe
Volatility Index (VIX Index), recognized as the world's premier
gauge of U.S. equity market volatility.
Cboe's subsidiaries include the largest options exchange and the
third largest stock exchange operator in the U.S. In addition, the
company operates one of the largest stock exchanges by value traded
in Europe and is a leading market
globally for ETP listings and trading.
The company is headquartered in Chicago with a network of domestic and global
offices across the Americas, Europe and Asia, including main hubs in New York, London, Kansas
City and Amsterdam. For
more information, visit www.cboe.com.
Media
Contacts
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Angela
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Tim
Cave
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Debbie
Koopman
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+1-646-856-8734
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+44 (0)
759-506-719
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+1-312-786-7136
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atu@cboe.com
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tcave@cboe.com
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dkoopman@cboe.com
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CBOE-E
CBOE-OE
CBOE-C
Cboe® Cboe Volatility Index®, VIX®, Cboe Global Markets®, and
MATCHNow® 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 the meaning of the Private
Securities Litigation Reform Act of 1995 that involve a number of
risks and uncertainties. You can identify these statements by
forward-looking words such as "may," "might," "should," "expect,"
"plan," "anticipate," "believe," "estimate," "predict," "potential"
or "continue," and the negative of these terms and other comparable
terminology. All statements that reflect our expectations,
assumptions or projections about the future other than statements
of historical fact are forward-looking statements. These
forward-looking statements, which are subject to known and unknown
risks, uncertainties and assumptions about us, may include
projections of our future financial performance based on our growth
strategies and anticipated trends in our business. These statements
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
environment. New risks and uncertainties emerge from time to time,
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 impact of the novel coronavirus ("COVID-19") pandemic,
including changes to trading behavior broadly in the market; 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
volumes, market data fees or a shift in the mix of products traded
on our exchanges; legislative or regulatory changes; our ability to
protect our systems and communication networks from security risks,
cybersecurity risks, insider threats and unauthorized disclosure of
confidential information; increasing competition by foreign and
domestic entities; our dependence on and exposure to risk from
third parties; fluctuations to currency exchange rates; our index
providers' ability to maintain the quality and integrity of their
indexes and to perform under our agreements; 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 attract and retain skilled
management and other personnel; our ability to minimize the risks,
including our credit and default risks, associated with operating a
European clearinghouse; our ability to accommodate trading 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; 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; 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; our
ability to maintain an investment grade credit rating; impairment
of our goodwill, long-lived assets, investments or intangible
assets; and the accuracy of our estimates and expectations. 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, 2019 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.
1Market share by volume traded in trailing 12-month
period as of Dec. 31, 2019
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SOURCE Cboe Global Markets, Inc.