Cboe Global Markets Agrees to Acquire Leading European Equities Clearing House EuroCCP
Transaction brings together two pan-European organizations that have long championed competition, open access and clearing interoperability in Europe
Ownership of EuroCCP expected to enhance Cboe's current European equities business and create pathway for equity derivatives trading and clearing in the region
Deal expected to close in first half of 2020
CHICAGO and LONDON, Dec. 10, 2019 /PRNewswire/ -- Cboe Global Markets, Inc. (Cboe: CBOE), one of the world's largest exchange holding companies, today announced it has entered into a definitive agreement to acquire EuroCCP, a leading pan-European equities clearing house. The transaction will bring together two companies that have long championed competition, open access and clearing interoperability in Europe. Additionally, Cboe's ownership of EuroCCP is expected to provide opportunity to pursue the development of equity derivatives trading and clearing capabilities in the region, subject to regulatory approvals.
The two companies are closely aligned on a vision to further expand the benefits of EuroCCP's open-access model serving other exchanges and trading venues. EuroCCP currently clears trades for 39 trading venues, which represent close to 95 percent of Europe's equity landscape, making it the most connected equity central counterparty (CCP) in the region. EuroCCP clears on average between four to five million trade sides daily, totalling €30 to €40 billion in value, and provides clearing members with easy access and the ability to maximize operational efficiency and netting opportunities while reducing risk and cost. Cboe sees an opportunity to further grow this business by capitalising on the strength of its pan-European network.
Ed Tilly, Chairman, President and Chief Executive Officer of Cboe Global Markets said, "Cboe's planned acquisition of a leading equities clearing house in Europe is an important step in our growth strategy for the region. We believe ownership of EuroCCP will enhance our current European equities business, while providing opportunities to potentially diversify our business, including trading and clearing derivatives, in the future. We look forward to officially welcoming the EuroCCP team to Cboe Global Markets."