Talks that the CBOE will acquire BATs exchange led to a 24% rise in the BATs stock which IPO’d on BATS exchange of course, only this April!
We have mentioned BATs on Daily Fintech, in multiple posts (see here). They are innovative and have expanded so fast and dominated especially in the ETF market.
But I want to point today a few facts about CBOE, in light of this potential consolidation (which will make me sad, because it is one more sign that Disruption is bought out).
CBOE has exclusive rights to options on S&P500 and VIX until 2032! See more details here.
"The S&P 500 Index options contract, the most active US index option with nearly 700,000 contracts in average daily volume last year, as well as its popular Vix index, which measures implied volatility on the S&P 500 and is often dubbed Wall Street’s fear gauge.). "
The options market accounts for 80% of CBOE revenues!
Their main competitior is Nasdaq who has recently acquired 3 options businesses.