Cboe Global Markets Buying Block-Trading ATS BIDS Trading

Cboe Global Markets (Cboe: CBOE) announced on Friday that it has entered into a definitive agreement for the acquisition of BIDS Trading, a broker-dealer and the operator of the United States’ largest independent block-trading ATS.

With this acquisition, Cboe is planning to diversify its US equities offering beyond traditional Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term products and services. The final closure of the deal is expected to be completed in early 2021 as it is now pending for regulatory approval.

Cboe is already working with BIDS Trading to implement block trading services in the European equities market. The company is now expecting to receive additional advantages in the North American market with the acquisition.

“We are pleased to build upon our innovative and successful partnership with BIDS Trading, which began with the 2016 launch of Cboe LIS, now one of the largest European equities block trading platforms,” Ed Tilly, Cboe Global Markets’ chairman, president, and CEO, said in a statement.

“The acquisition complements our U.S. equities trading business by expanding our presence into the off-exchange space. We are excited by the opportunity to further diversify and expand our equities trading offering and begin competing in this segment of the market,” Tilly added.

Plans to Tap Non-US Markets

Additionally, Cboe is expecting to benefit in the non-US equities or options products with BIDS Trading's differentiated network of global Buy-Side Buy-Side The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim Read this Term investment managers and sell-side constituents. The giant is also planning to built off-exchange products.

According to the agreement, BIDS Trading CEO, Tim Mahoney and the other staff of the company will join Cboe.

“We believe joining the Cboe family will enable us to pursue additional opportunities that are beneficial to BIDS Trading Subscribers and Sponsored Users as Cboe continues to expand its business across new geographies and reaches new customers,” Mahoney added.