Canadian exchange shows interest in CBOE exchange assets, CEO says
The Canadian Securities Exchange (CSE) is considering acquiring Cboe Global Markets' Australian and Canadian exchanges as part of its expansion strategy. CSE recently purchased Australia's National Stock Exchange and sees potential benefits in acquiring Cboe Australia, which holds 20% of Australia's equity market turnover. Cboe plans to sell these exchanges after acquiring them four years ago. The Singapore Exchange has expressed no interest in Cboe Australia.
By Scott Murdoch
SYDNEY, Dec 4 (Reuters) - The Canadian Securities Exchange (CSE) is considering bidding for securities and derivatives exchanges Cboe Global Markets Australia and Canada, as part of the company’s ambitious expansion plan, its CEO Richard Carleton told Reuters.
CSE in October finalised the purchase of Australia’s National Stock Exchange (NSX), which lists 51 small- to mid-cap companies.
Cboe, which in late October said it would sell its Australian and Canadian exchanges after their acquisition four years ago, declined to comment on the sale process.
It decided to sell the Australian business just weeks after Cboe was granted a licence by Australia’s corporate regulator to list new companies on its local exchange.
Carleton said CSE was interested in Cboe Australia as it would offer more connectivity to brokers in Australia which could benefit the NSX.
The Australian Securities and Investments Commission (ASIC) is trying to ramp up direct competition to the Australian Securities Exchange (ASX) in the country’s tough initial public offering (IPO) market.
Cboe Australia has 20% of Australia’s equity market turnover, representing almost A$2 billion ($1.32 billion) of trades each day, according to regulatory figures.
The Singapore Exchange (SGXL.SI) said on Thursday it was not interested in Cboe Australia after local media reported it was eyeing a deal. ($1 = 1.5126 Australian dollars)
