- Ownership of ErisX provides Cboe with entry to digital asset
spot and derivatives markets, including clearing and
settlement
- Opportunity to build comprehensive digital asset market data
offering, create indices and explore further derivative
products
- Network of industry partners, intermediaries and market
participants of all types expected to contribute to ongoing
development of client-driven solutions to increase adoption of
digital assets and further mature the market
CHICAGO, May 2, 2022 /PRNewswire/ -- Cboe Global Markets,
Inc. (Cboe: CBOE), a leading provider of global market
infrastructure and tradable products, today announced it has
completed the acquisition of Eris Digital Holdings, LLC (ErisX), an
operator of a U.S. based digital asset spot market, a regulated
futures exchange and a regulated clearinghouse. Ownership of ErisX
allows Cboe to enter the digital asset spot and derivatives
marketplaces through a digital-first platform developed with
industry partners to focus on robust regulatory compliance, data
and transparency.
"Adding ErisX to the Cboe network is another exciting chapter in
Cboe's growth story. We see enormous potential in the digital asset
market and are excited to apply our blueprint of success to this
burgeoning asset class," said Ed
Tilly, Chairman, President and Chief Executive Officer of
Cboe Global Markets. "Tom Chippas
and the entire ErisX team have made significant progress bringing
the regulatory framework and transparency of traditional markets to
the digital asset space, and I look forward to working together,
with our industry partners, to grow the digital asset market on a
global scale."
Cboe plans to operate the ErisX business as a subsidiary with
Thomas Chippas, Chief Executive
Officer of ErisX, remaining as head of the digital asset business,
reporting to Chris Isaacson,
Executive Vice President and Chief Operating Officer of Cboe. In
addition to operating the existing spot, derivative and clearing
platforms, Cboe also intends to develop and distribute a range of
digital asset data products1. Using robust market data
based fundamentally on actionable bid and offer prices from the
spot crypto market, Cboe Digital plans to develop a benchmark data
stream to help market participants evaluate the appropriateness of
crypto execution prices.
"I am incredibly proud of the ErisX team for their relentless
pursuit of innovation in the digital asset space. From the
beginning, our vision was to advance the digital asset spot, data,
derivatives and clearing ecosystem by making regulatory compliance
and operational integrity the foundation of the ErisX business,"
said Thomas Chippas, Chief Executive
Officer of ErisX. "I couldn't be more excited for the future as we
join forces with Cboe and our industry partners to leverage their
collective market expertise and global resources to not only grow
ErisX, but also to develop global regulatory and compliance
standards that have a lasting impact on the entire digital asset
space."
With Cboe, ErisX aims to be a digital asset market rooted in the
exchange principles of transparency and regulatory compliance,
supported by a network of intermediaries, providing client-driven
solutions that help institutions fully embrace this emerging asset
class. Digital assets are globally recognized and are expected to
continue to benefit from a regulated derivatives market and central
clearing to help mitigate counterparty risk—providing more
efficient price formation, additional hedging tools, enhanced
transparency, and deeper liquidity. Cboe believes meeting the
demand for trading digital assets with the advantages of exchange
trading is beneficial for all investors, and intermediaries have a
key role to play in the ongoing development of Cboe Digital spot
and derivatives markets.
"Increased retail participation has fueled record trading across
equities, derivatives and digital assets, demonstrating how
investors of all types want access to sustainable financial
solutions," said Chris Isaacson,
Executive Vice President and Chief Operating Officer of Cboe Global
Markets. "Cboe is uniquely positioned to help the growing segment
of retail investors access traditional and new financial markets
through product innovation, education and collaboration with our
industry partners and intermediaries—and now we can leverage the
regulatory framework, transparency, infrastructure and data
solutions of those trusted markets to further mature and expand
digital asset trading and clearing for a broader user base."
Market participants, including a growing number of institutional
firms, have continued to request exposure to digital assets. The
ErisX platform was built with the traditional exchange principles
of transparency, price discovery and regulatory controls, laying
the foundation for institutional trading of digital assets. ErisX's
intermediary-friendly model has brought resiliency and security to
the digital asset space with physically delivered futures contracts
traded at and cleared through a CFTC regulated Designated Contract
Market (DCM) and Derivatives Clearing Organization (DCO). ErisX
futures contracts trade alongside its spot market on an innovative
and unified platform, bringing price transparency and collateral
efficiency.
Terms of the deal were not disclosed, however the company noted
that the purchase price is not material from a financial
perspective. ErisX is positioned to be a long-term leader as
regulation is expected to play an increasingly prominent role in
digital assets, and Cboe plans to make the early investments
necessary to help maximize revenue growth potential over the medium
and long term. Cboe anticipates ErisX will reach EBITDA
profitability within two to three years, benefiting from a
diversified stream of revenue drivers.
About Cboe Global Markets, Inc.
Cboe Global Markets (Cboe: CBOE), a leading provider of market
infrastructure and tradable products, delivers cutting-edge
trading, clearing and investment solutions to market participants
around the world. The company is committed to operating a trusted,
inclusive global marketplace, providing leading products,
technology and data solutions that enable participants to define a
sustainable financial future. Cboe provides trading solutions and
products in multiple asset classes, including equities, derivatives
and FX, across North America,
Europe and Asia Pacific. To learn more, visit
www.cboe.com.
About ErisX
ErisX Futures are offered through Eris Exchange, LLC, a
Commodity Futures Trading Commission (CFTC) registered Designated
Contract Market (DCM) and Eris Clearing, LLC, a registered
Derivatives Clearing Organization (DCO). The CFTC does not have
regulatory oversight authority over virtual currency products
including spot market trading of virtual currencies. ErisX Spot
Market is not licensed, approved or registered with the CFTC and
transactions on the ErisX Spot Market are not subject to CFTC
rules, regulations or regulatory oversight. ErisX Spot Market is
offered through Eris Clearing, LLC, which is licensed to engage in
virtual currency business activity by the New York State Department of Financial
Services and holds licenses in other U.S. states and territories.
https://www.Erisx.com/disclaimer/
ErisX offers individuals and institutions a single, innovative
platform to access crypto spot and futures markets. By combining
professional tools, advanced technology, sophisticated regulatory
oversight, and a diverse product set, ErisX offers compliant,
capital markets friendly workflows to digital market participants.
Backed by some of the world's largest trading firms and financial
institutions, ErisX brings transparency and reliability to the
digital asset class. ErisX, Eris Exchange, and the ErisX and Eris
Exchange logos are trademarks of the Eris Exchange group of
companies.
Cboe Media
Contact
|
ErisX Media
Contact
|
Cboe Analyst
Contact
|
Angela
Tu
|
Jessica
Darmoni
|
Kenneth Hill,
CFA
|
+1-646-856-8734
|
+1-312-756-8716
|
+1-312-786-7559
|
atu@cboe.com
|
Jessica.darmoni@erisx.com
|
khill@cboe.com
|
CBOE-C
CBOE-OE
Cboe®, Cboe Global Markets®, Cboe Volatility Index®, and VIX®
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,"
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"continue," and the negative of these terms and other comparable
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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 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 or clearing volumes, market data fees or a
shift in the mix of products traded on our exchanges; legislative
or regulatory changes or changes in tax regimes; our ability to
protect our systems and communication networks from security risks,
cybersecurity risks, insider threats and unauthorized disclosure of
confidential information; our ability to attract and retain skilled
management and other personnel; increasing competition by foreign
and domestic entities; our dependence on and exposure to risk from
third parties; fluctuations to currency exchange rates; factors
that impact the quality and integrity of our indices; the impact of
the novel coronavirus ("COVID-19") pandemic; 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 minimize the risks, including our
credit and default risks, associated with operating a European
clearinghouse; our ability to accommodate trading and clearing
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 or for whom
we clear transactions; 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; our ability to maintain
BIDS Trading as an independently managed and operated trading
venue, separate from and not integrated with our registered
national securities exchanges; 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 and our ability to
make payments on or refinance our debt obligations; our ability to
maintain an investment grade credit rating; impairment of our
goodwill, long-lived assets, investments or intangible assets; the
accuracy of our estimates and expectations; litigation risks and
other liabilities; and operating a digital asset business. 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, 2021 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.
1 Subject to regulatory approval
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