Cboe Global Markets to Acquire ErisX, Forms Cboe Digital

Cboe Global Markets, Inc., a cutting-edge trading and investment solutions provider, announced that it has reached a definitive agreement to acquire Eris Digital Holdings, LLC (ErisX). Financial terms surrounding the acquisition have not yet been revealed.

According to the official press release, this acquisition is expected to enable Cboe to enter the digital asset spot and derivatives marketplaces through a digital-first platform developed with industry partners to focus on robust regulatory compliance, data and transparency. It will close in the first half of 2022, subject to regulatory approvals and other customary closing conditions. 

Cboe plans to operate the digital asset business as Cboe Digital. The company also has secured the support of a broad range of market participants, including well-established retail brokers, crypto-leading firms and sell-side banks, who are expected to form a Digital Advisory Committee tasked with advising Cboe on the ongoing development of the Eris spot and derivatives markets. As members of the Digital Advisory Committee, DRW, Fidelity Digital Assets, Galaxy Digital, Interactive Brokers, NYDIG, Paxos, Robinhood, Virtu Financial and Webull are committed to ongoing engagement with Cboe Digital markets. Certain members of the Digital Advisory Committee listed above also intend to acquire minority ownership interests in Cboe Digital and to serve as partners in the growth of the business. Cboe Digital will leverage the engagement and collaboration with these market participants to continue to operate ErisX as a resilient, trusted and transparent digital asset venue.

Additionally, Cboe plans to use its real-time, risk and derived data expertise and global network to provide a transparent view into digital asset markets and trade execution. Leveraging digital asset data from ErisX and Cboe's existing index calculation capabilities, Cboe Digital intends to develop and distribute digital asset indices for potential use in ETP creation and other derivative product opportunities.

Cboe also plans to leverage the Digital Advisory Committee to provide input and guidance on the development of a robust market data offering based fundamentally on actionable bid and offer prices from the ErisX spot crypto market. This market data offering is expected to be modeled after established best execution practices in other asset classes, ultimately intending to develop a benchmark to help Cboe Digital's industry partners and other market participants evaluate the appropriateness of crypto execution prices.