Cboe Global Markets (Cboe: CBOE) announced on Friday that it has entered into a definitive agreement for the acquisition of BIDS Trading, a broker-dealer and the operator of the United States’ largest independent block-trading ATS.
With this acquisition, Cboe is planning to diversify its US equities offering beyond traditional exchange products and services. The final closure of the deal is expected to be completed in early 2021 as it is now pending for regulatory approval.
Cboe is already working with BIDS Trading to implement block trading services in the European equities market. The company is now expecting to receive additional advantages in the North American market with the acquisition.
“We are pleased to build upon our innovative and successful partnership with BIDS Trading, which began with the 2016 launch of Cboe LIS, now one of the largest European equities block trading platforms,” Ed Tilly, Cboe Global Markets’ chairman, president, and CEO, said in a statement.
“The acquisition complements our U.S. equities trading business by expanding our presence into the off-exchange space. We are excited by the opportunity to further diversify and expand our equities trading offering and begin competing in this segment of the market,” Tilly added.
Plans to Tap Non-US Markets
Additionally, Cboe is expecting to benefit in the non-US equities or options products with BIDS Trading’s differentiated network of global buy-side investment managers and sell-side constituents. The giant is also planning to built off-exchange products.
According to the agreement, BIDS Trading CEO, Tim Mahoney and the other staff of the company will join Cboe.
“We believe joining the Cboe family will enable us to pursue additional opportunities that are beneficial to BIDS Trading Subscribers and Sponsored Users as Cboe continues to expand its business across new geographies and reaches new customers,” Mahoney added.
(Photo: Jiefei Liu/MEDILL)