Cboe CEO Says Firm Is Open to Acquisitions in Open Jurisdictions

Katherine Doherty, Bloomberg News

The Cboe Global Markets, Inc. building in Chicago, Illinois. , Photographer: Scott Olson/Getty Images

(Bloomberg) -- Exchange operator Cboe Global Markets Inc. can do future acquisitions and expand its global presence as long as the firm maintains a “flexible balance sheet,” according to Chief Executive Officer Edward Tilly.

“There is nothing we have to do. We like to be in jurisdictions that are open to competition, and we like to be there in scale,” Tilly said in an interview with Bloomberg Television Wednesday. “That’s really where our acquisitions have been in the past.”

Cboe, previously known as the Chicago Board Options Exchange, has done several deals over the past three years. Its boosted its presence abroad, expanding in Europe, Asia and North America, with the acquisition of Aequitas Innovations Inc., the parent of Toronto-based NEO Exchange, in 2021. It also added new asset classes with the addition of cryptocurrency company Eris Digital Holdings LLC.

The firm has also filed an application on behalf of Fidelity Investments to launch the first US exchange-traded fund that invests directly in Bitcoin.

Tilly says Cboe is hopeful that effort can move forward. “We’re optimistic that the SEC will get comfort around their ability to survey, hopefully with a trusted market operator,” he said. “There is a demand for the democratization of crypto exposure, and ETF’s are a wonderful tool.”

Cboe’s shares closed at $150.12 on Wednesday. The stock is up almost 20% this year.

--With assistance from Sonali Basak and Scarlet Fu.

(Adds Cboe share price in final paraphraph.)