CME Group Flatly Denies It’s In Talks With Cboe Global Markets

Correct image Cboe/CME
Suzanne Cosgrove

Suzanne Cosgrove

Editor

The CME Group Wednesday issued a firm denial that it was in talks to acquire Cboe Global Markets, a clear attempt to squash a story published by the Financial Times earlier in the day.

The FT story said the CME Group had “approached” Cboe Global Markets about an all-share deal for nearly $16 billion. It also was surprisingly specific about the alleged details of the proposed purchase. Citing unnamed sources, FT said the CME offered 0.75 of its own shares for every Cboe share, which would value Cboe at about $150 per share.

In a statement released publicly via PRNewswire, the CME Group said it “denies all rumors that [it] is in conversations to acquire Cboe Global Markets.

“The company has not had any discussions with Cboe whatsoever. While the company does not typically comment on rumor or speculation, today’s inaccurate information required correction,”  it concluded.

Separately, a Cboe spokeswoman gave JLN the following statement: “As a matter of policy, Cboe does not comment on market rumors or speculation.”

While Cboe Global Markets has long been overshadowed by the size of the CME’s revenues and diverse product offerings — and long the subject of speculation that it might be taken over by the CME —  it has been in an expansion mode in recent years, particularly in Europe. Cboe Europe, a subsidiary of Cboe Global Markets, plans to launch Cboe Europe Derivatives, an Amsterdam-based futures and options market, on September 6.

Cboe also holds the much-coveted rights to the Cboe Volatility Index (VIX) and its related futures and options products, and is a leading U.S. options exchange in a period when equity options volume has been in an upswing.  

At the close of trading on Wednesday, CME Group shares ended at $197.58, not far from its low of the day at $196.12. Cboe shares also were down, closing at  $122.63 after trading between $138.66 and $122.10 during Wednesday’s session.

John Lothian Newsletter

Today’s Newsletter

London Stock Exchange to abandon lossmaking derivatives venture

London Stock Exchange to abandon lossmaking derivatives venture

First Read $53,406/$300,000 (17.8%) ++++ Hits & Takes John Lothian & JLN Staff The London Stock Exchange has given notice that CurveGlobal is to be closed effective Friday, the 28th of January, 2022. CurveGlobal's CEO Andy Ross had this to say on LinkedIn...

We visit more than 100 websites daily for financial news (Would YOU do that?)

Now Read This

Brendan Bradley’s Front Row Seat to the Path to Electronic Trading

Brendan Bradley’s Front Row Seat to the Path to Electronic Trading

Brendan Bradley had a front row seat for the major exchange battles between open outcry trading and electronic trading after starting at the London International Financial Futures Exchange (LIFFE) in the 1980s and then moving to DTB in the mid-1990s. While there he saw the German Bund contract battle that shocked the global derivatives trading world and then later witnessed the competition between Eurex and the Chicago Board of Trade (CBOT) that he said ultimately led to the global leading exchange’s demise.

Bradley shared a historic overview of the development of markets in Europe as electronic trading developed for The Path to Electronic Trading from John Lothian News’ MarketsWiki Education video series.

Pin It on Pinterest

Share This Story