CBOE sees need to move quickly in terms of crypto after stock exchange acquisition

CBOE sees need to move quickly in terms of crypto after stock exchange acquisition

CBOE GLOBAL Markets has completed the takeover of the institutional cryptocurrency exchange Erisx, with the managers of the newly merged company declared that they intend to integrate quickly while the markets for digital assets remain hot.

The CBOE company based in Chicago announced the deal for the first time six months ago.

Erisx operates a cash ambassam market based in the USA for digital assets as well as a regulated appointment exchange and a clearing house. The company is to be renamed CBOE digitally and act as a subsidiary of Erisx CEO Thomas Chippas.

Erisx, a company with 55 employees at the time of the takeover, will now use CBOE's more extensive resources, Chippas told Blockworks.

"We find crossover opportunities and product development opportunities to expand the existing CBO customer base, but [We have] complete freedom to continue new digital-asset products here at Erisx," said Chippas.

Chris Isaacson, Chief Operating Officer from CBOE, described the takeover as "super complementary" and added that it gives the company its first presence in the field of digital assets.

"We will only integrate where it makes sense, but we know that we have to act quickly in this asset class," he told Blockworks. "Understanding this agility with this 100 % subsidiary is a great step."

CBOE operates the largest option exchange in the USA. On the CBOE stock exchanges, $ 86.5 billion is traded every day. The average number of US option contracts and US futures contracts traded daily amounts to around 9.8 million and 213,000.

product plans

Matt Trudeau, Chief Operating Officer from Erisx, said that the highest priority for the company was the expansion of his clearing position by margin skills in the near future. An application to the Commodity Futures Trading Commission (CFTC) is to offer margin crypto futures that are billed both physically and in cash.

The soon to be the soon to expand its spot offer beyond Bitcoin, Bitcoin Cash, Litecoin and Ether.

CBOE is uniquely positioned across the board to offer products such as basic trading and exchange for physical transactions that include both the Kassa and the appointment market, Trudeau told Blockworks.

"One of the things we expect from being able to offer these products more efficiently from the company and cost center than any other who has an independent futures market with cash compensation or an independent cash market," he said.

CBOE also intends to develop a benchmark data current-based on implementable money and mail courses from the spot cryptom market-to help the market participants, the company said in an explanation.

tradfi and crypto bridge

Isaacson said that part of the attractiveness of the purchase of Erisx was the company's “intermediary -friendly platform”. According to the M&A consulting company Architect Partner, the deal was estimated at $ 400 million. The companies did not provide any information at the sales price.

"This will enable traditional financial actors who are increasingly efficient and willing to introduce digital assets, now take over the investment class," he said.

ryan McCulloch, an investment banking employee at Architect partner said in a research note that the need for traditional financial actors, crypto-exposure "Table insert" has become. It compared the CBOE Erisx deal with other so-called "bridge transactions" between companies such as the German Börse Group and Crypto Finance; Mastercard and Cipher Trace; and PayPal and Curv.

"While the cryptosector is developing, consolidation will continue through takeovers, since traditional actors continue to choose the buy-over-building option," wrote McCulloch. "Erisx is not the largest stock exchange for crypto derivatives, but their focus during the entire development on robust compliance with legal regulations is an important value driver for traditional financial players such as CBOE."

Many traditional institutions are already involved in crypto, said Chippas and added that there is a huge opportunity to let the cake grow.

"There are many people today who want to access these products but are not ready to open an account for an investment class with a specific provider," he said. "You want to access these products through the traditional middlemen."

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The contribution CBOE SEES 'Need to Move Quickly' in Crypto Following Exchange Acquisition is not a financial advice.