Cboe Digital Partners Finalised
Posted by Colin Lambert. Last updated: November 30, 2022
Cboe Global Markets has completed the syndication of minority equity interests with a group of 13 firms becoming investor partners in the Cboe Digital business (formerly ErisX), first announced earlier this year.
The investors number one more than the 12 originally announced by Cboe, with Galaxy Digital joining the venture along with Susquehanna International, while Optiver has dropped out. The remaining investors are B2C2, DRW, GSR, Hidden Road, IMC, Interactive Brokers, Jane Street, Jump Crypto, Robinhood, tastyworks and Virtu Financial.
“We are pleased to have this group of investor partners joining us as equity owners of Cboe Digital, with many of them already fully onboarded to the Cboe Digital platform and the remainder expected to be completed in the coming months,” says John Palmer, president of Cboe Digital. “Each of these partners share Cboe’s deep commitment to bringing a trusted, regulatory-first approach to the digital asset space. The time is right for the Cboe Digital model in the digital asset space, and we look forward to leveraging the combined expertise of these firms as we work together to grow, shape and define this asset class to benefit market participants across the globe.”
Additionally, as part of its operation of the Cboe Digital business, Cboe plans to form a Digital Advisory Committee comprised of a cross-section of investor and commercial partner firms. The committee will be tasked with advising Cboe on the ongoing development of the firm’s crypto spot and derivatives markets, and more broadly, the digital asset space.
Cboe says it plans to leverage the engagement and collaboration with these market participants to help accelerate growth of Cboe Digital as a resilient, trusted and transparent digital asset venue.
As well as operating a spot and derivatives market as well as a clearing platform, Cboe says it plans to develop and distribute a range of digital asset data products, subject to regulatory approval. Using market data based fundamentally on actionable bid and offer prices from the spot crypto market, Cboe Digital plans to develop a benchmark data stream to help market participants evaluate the appropriateness of crypto execution prices.
“Cboe Digital’s foundation is based on the core tenets of a trusted financial exchange – transparency, regulatory oversight, and customer protection – underpinned by responsible innovation and the value of an intermediary-driven model,” says John Deters, chief strategy officer, Cboe Global Markets. “Together with our partner firms, we will look to explore opportunities across digitisation, including discovering new areas of tradable products specific to managing digital asset risk, building new digital technology in a safe and compliant way, and helping craft the future of digital assets with proven market expertise and regulatory experience, which we believe will help the space mature and ultimately grow.”