TRADING VENUES

CBOE-Bats merger gets go-ahead from FCA

The merger is expected to close on 28 February and has received US and European regulatory approval. 

By Hayley McDowell hayley.mcdowell@strategic-i.com February 17, 2017 11:06 AM GMT

The proposed merger between the Chicago Options Board Exchange (CBOE) and Bats Global Markets has received final regulatory approval and is expected to close on 28 February.

CBOE gained regulatory approval from the UK’s Financial Conduct authority (FCA), meaning all US and European regulatory clearances and approval have been received.

Earlier this month, CBOE appointed three Bats directors to serve on its board of directors. Joe Ratterman, chairman at Bats Global Markets, Chris Mitchell, managing director of Spectrum Equity, and Michael Richter, co-Founder and former CEO of Lime Brokerage, will all join CBOE’s board.

The mega-merger - announced last year - is worth over $3 billion and the acquisition is set to provide CBOE with a gateway into the European equity and exchange traded fund (ETF) market.

Chris Concannon, Bats' CEO, said at the time of the announcement: ”This transaction offers our stockholders immediate cash value and allows us the opportunity to continue our great growth trajectory by combining with another market innovator in CBOE.”

Following the transaction, CBOE expects to incorporate Bats proprietary trading platform, as well as launching a new set of market data services. 

Edward Tilly, CEO at CBOE, added: “We believe that bringing together CBOE Holdings' product innovation, indexing expertise, and options and volatility market position, with Bats' proven proprietary technology infrastructure, global ETP listing and trading venues, global foreign exchange marketplace and market data services.”