Cboe Global Markets has agreed to acquire Chi-X Asia Pacific, an alternative market operator and market solutions provider in the APAC region.
Australia and Japan are two of the world’s largest securities markets and Chi-X Asia Pacific is well positioned to expand Cboe’s distribution network to further offer its unique proprietary products to clients in Australia and Japan.
Chi-X Australia (CXA) offers access to all Australian-listed securities and the exclusive trading of CXA quoted warrants and ETFs. The country’s second-largest securities exchange holds an 18.4 percent total market share.
Chi-X Japan (CXJ) is a proprietary trading system for Japanese equities, which offers four trading books including both displayed and non-displayed mechanisms. The third-largest equities venue in the country holds a 2.7 percent lit market share.
Chi-X Asia Pacific net revenue increased in 2020 by 26%, having generated approximately $26 million. The deal is expected to close in the second or third quarter of 2021, pending regulatory review.
Ed Tilly, Chairman, President and CEO at Cboe Global Markets, said: “With the planned acquisition of Chi-X Asia Pacific, we continue to execute on our growth strategy by broadening our geographic and asset class presence while enabling the further extension of our product offerings to our global network of customers. This is an exciting investment in attractive, growing markets that will complement our North American and European operations and provide a foothold in the key Asia Pacific region, positioning us to become a truly global marketplace for our customers.
“In a short number of years, the Chi-X Asia Pacific team has built their business into one of the largest market operators in Asia Pacific. We look forward to working with them to accelerate the company’s further growth, building on our shared cultures of innovation and customer-first approach as we aim to bring greater choice to investors in Asia Pacific”, Tilly added.