With its multi year technology migration finally wrapped up, Cboe Global Markets is returning its focus in 2020 to the expansion of proprietary products and geographies, Cboe Chairman, President and CEO Ed Tilly told a gathering of journalists Tuesday.
Cboe began its technology changeover after its acquisition of Bats Global Markets, completed in February 2017, and logged the final piece of its technology overhaul on October 7, 2019. with the migration of Cboe Options Exchange, the largest U.S. options exchange.
“The focus in the last three years has been on the technology migration and now we’re back to (an emphasis on) products,” said Tilly.
Technology innovations now center around the development of Cboe’s customer-driven research and data platform, with the first stages of its rollout planned for this year.
Cboe also is banking on growth in European derivatives, purchasing the remaining shares of the pan-European equities clearing house EuroCCP in a deal the exchange expects to close in the first half of 2020, subject to regulatory approval. “We think we can grow this pie,” Tilly said, referring to European equities derivatives trading and clearing.
In addition, Cboe views risk management as “top of the mind” in 2020 amid geopolitical concerns and the U.S. presidential elections, citing increased customer demand for added expirations in its VIX futures products.
Interest in additional VIX expiration dates has been fed by a desire to hedge long exposures, Tilly said. He added that demand for hedges is often evident around November elections, but this year it also has bubbled up around the February Iowa caucuses and the February and March presidential primaries. “Rarely have the primaries been so top of the mind,” he said.