Report Prompts CME Denial of Bid for Cboe
In a relatively unusual step, following a report in the Financial Times that CME Group was in talks with rival Cboe Global Markets, CME has issued a blunt denial that it was considering a $16 billion merger.
The initial report prompted a spike in Cboe’s stock price to $135 from $123.50, however on denial the move was reversed and the stock closed slightly lower on the day at $122.63.
In its statement, CME says, “CME Group denies all rumours that it is in conversations to acquire Cboe Global Markets. The company has not had any discussions with Cboe whatsoever. While the company does not typically comment on rumour or speculation, today’s inaccurate information required correction.”
Such a move would have significant ramifications in the FX industry as it could encompass CboeFX coming under the same umbrella as EBS, bringing two firm FX CLOBs together. The two platforms, across all mechanisms, not just the CLOBs, reported spot FX average daily volume of just over $90 billion last month, but earlier this year, in March, they peaked at $113.1 billion.
Cboe has not issued a public statement regarding the matter.