Cboe Europe Derivatives to Launch In H1 2021, Cleared by EuroCCP

Cboe Global Markets

Cboe Global Markets has completed its acquisition of EuroCCP, a leading pan-European equities clearinghouse, which paves the way for the planned launch of Cboe Europe Derivatives, new Amsterdam-based futures, and options market, in the first half of 2021, subject to regulatory approvals.

EuroCCP currently clears trades for 37 trading venues, which represent close to 95 percent of all equity trades executed on organized markets in Europe. As part of the transaction, EuroCCP put in place a committed credit facility of up to €1.5 billion to strengthen the firm’s liquidity risk management framework and help ensure EuroCCP continues to meet relevant liquidity requirements under the European Market Infrastructure Regulation (EMIR). The firm will continue to operate as an independent subsidiary, led by Cécile Nagel.

Ed Tilly, Chairman, President and Chief Executive Officer of Cboe Global Markets, said: “This acquisition is a significant milestone for our European business. Full ownership of a leading equities clearing house not only enhances our current European equities business but also provides opportunities to diversify our business into trading and clearing derivatives in the region. We are delighted to welcome the EuroCCP team to Cboe Global Markets.”

David Howson, President of Cboe Europe, said: “This deal marks the beginning of the next chapter for Cboe Europe and, together with EuroCCP, we couldn’t be more excited to further deliver on our pan-European mission by planning the launch of Cboe Europe Derivatives. We have listened to the needs of market participants and are designing this new market from a pan-European point-of-view,
leveraging our global derivatives expertise, European equities footprint, and world-class technology to build a more efficient equity derivatives market.”

Cécile Nagel, Chief Executive Officer of EuroCCP, said: “We believe this transaction positions EuroCCP for continued success. In addition to building out our derivatives clearing services, we see many opportunities to collaborate with Cboe to expand our product offering across asset classes. With our shared values and focus on innovation and client service, together with Cboe we can do even more to advance capital markets in Europe.”

With the acquisition of EuroCCP, who will provide clearing services subject to regulatory approval, Cboe plans to launch Cboe Europe Derivatives in the first half of 2021 and initially offer trading in equity futures and options based on six Cboe Europe Indices: the CboeEurozone 50, Cboe UK 100, Cboe Netherlands 25, Cboe Switzerland 20, Cboe Germany 30, and Cboe France 40 – all calculated using Cboe market data1. At a later date and based on customer demand, Cboe plans to add futures and options on additional European benchmarks.

Cboe NL is Cboe’s Netherlands-based exchange which launched in October 2019 and will be the future home to Cboe Europe Derivatives. Ade Cordel, who oversaw Cboe’s expansion into European derivatives, has been appointed President of the firm.

Ade Cordell, President of Cboe NL, said: “There is an opportunity to improve the existing European derivatives market structure and unlock its true potential through the creation of a transparent, efficient,
lit pan-European market. Our pan-European model will enable all market participants to access a modern derivatives market through a single access point, creating efficiencies in trading and clearing.”