Cboe completes EuroCCP acquisition, plans European derivatives market in H1 2021
Cboe Global Markets announced it has completed its acquisition of pan-European clearinghouse EuroCCP. The acquisition paves the way for the planned launch of Cboe Europe Derivatives, a new Amsterdam-based futures and options market, in the first half of 2021.
The transaction brings together two companies that have long championed competition, open access and clearing interoperability in Europe. EuroCCP currently clears trades for 37 trading venues, which represent close to 95% of all equity trades executed on organized markets in Europe.
As part of the transaction, EuroCCP put in place a committed credit facility of up to €1.5 billion. This facility is an important part of a number of new tools and procedures designed to strengthen the firm’s liquidity risk management framework and help ensure EuroCCP continues to meet relevant liquidity requirements under the European Market Infrastructure Regulation (EMIR).
Ed Tilly, chair, president and CEO of Cboe Global Markets, said in a statement: “Full ownership of a leading equities clearing house not only enhances our current European equities business, but also provides opportunities to diversify our business into trading and clearing derivatives in the region.”
The Amsterdam-based market is expected to initially offer trading in equity futures and options based on six Cboe Europe Indices: the Cboe Eurozone 50, Cboe UK 100, Cboe Netherlands 25, Cboe Switzerland 20, Cboe Germany 30, and Cboe France 40 – all calculated using Cboe market data. Cboe plans to add futures and options on additional European benchmarks at a later date, based on customer demand. EuroCCP is expected to provide clearing services for the platform.
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