- Equity partners expected to receive minority ownership stake,
join roster of planned commercial partner firms committed to
development of ErisX and Cboe Digital markets
- Firms expected to form Digital Advisory Committee tasked with
collaborating with Cboe on client-driven solutions to help increase
adoption of digital assets and further mature the market
- Partnerships expected to be finalized in the coming weeks
CHICAGO, Aug. 25, 2022 /PRNewswire/ -- Cboe Global
Markets, Inc. (Cboe: CBOE), a leading provider of global market
infrastructure and tradable products, announced the initial group
of firms that intend to become equity investors in the Cboe Digital
business.
Cboe's advanced discussions with potential equity partners
involve a broad and diverse range of market participants, including
leading retail and institutional intermediaries, liquidity
providers and brokers. These firms include B2C2, DRW, GSR, Hidden
Road, IMC, Interactive Brokers, Jane
Street, Jump Crypto, Optiver, Robinhood,
tastytrade and Virtu Financial. Through their equity
ownership, each firm will directly benefit from the growth of ErisX
and Cboe Digital and the close strategic and commercial alignment
from day one.
The soon to be formalized group of equity partners join a roster
of planned commercial partner firms supporting the ErisX business,
which is expected to be renamed Cboe Digital, including Fidelity
Digital AssetsSM, Galaxy Digital, NYDIG and Webull among
others. Together, subject to the execution of definitive documents,
these firms have committed to ongoing engagement with the business
and building of Cboe Digital markets.
As part of its operation of ErisX and the Cboe Digital business,
Cboe plans to form a Digital Advisory Committee comprised of a
cross-section of equity and commercial partner firms. The committee
will be tasked with advising Cboe on the ongoing development of the
ErisX spot and derivatives markets, and more broadly, Cboe Digital
and the digital asset space. Cboe plans to leverage the engagement
and collaboration with these market participants to help accelerate
growth of ErisX as a resilient, trusted and transparent digital
asset venue.
"ErisX was founded with the mission of bringing transparent,
well-regulated markets for digital assets and we are excited to
further accelerate on this vision with growing support from our
partner firms," said Ed Tilly,
Chairman and Chief Executive Officer of Cboe Global Markets.
"Building trusted markets has always been a part of Cboe's DNA, and
we look forward to leveraging the combined expertise of our partner
firms to help bring Cboe's regulatory framework, transparency,
infrastructure and data solutions to further grow the digital asset
market on a global scale."
"We are gratified to have the support of such a tremendous group
of industry leaders, which we believe is further validation of our
vision for the Cboe Digital business," said John Palmer, President of ErisX. "Our partner
firms share our deep commitment to bringing Cboe's trusted,
transparent, regulatory-first approach to the digital asset space
and we are excited to work together as a collective force to shape
and define this asset class now, and for the future, to benefit all
market participants."
On May 2, 2022, Eris Digital
Holdings, LLC (ErisX), an operator of a U.S. based digital asset
spot market, a regulated futures exchange and a regulated
clearinghouse, was acquired by Cboe. ErisX operates as a subsidiary
of Cboe Global Markets and serves as the cornerstone of the new
Cboe Digital business. As part of Cboe Digital, Cboe is operating
the existing spot, derivative and clearing platforms of ErisX, and
has plans to develop and distribute a range of digital asset data
products, subject to regulatory approval. Using 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.
With Cboe, ErisX aims to provide 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.
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, FX, and digital assets, 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
Contacts
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Cboe Analyst
Contact
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Angela
Tu
|
Tim
Cave
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Kenneth Hill,
CFA
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+1-646-856-8734
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+44 (0)
7593-506-719
|
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+1-312-786-7559
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|
atu@cboe.com
|
tcave@cboe.com
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khill@cboe.com
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CBOE-C
CBOE-OE
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property of their respective owners.
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Forward-Looking Information
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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
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We operate in a very competitive and rapidly changing
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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
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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 and
clearinghouse, including the expected benefits of our ErisX
acquisition, cybercrime, changes in digital asset regulation,
losses due to digital asset custody, and fluctuations in digital
asset prices. 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.
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