Cboe Global Markets acquires BIDS Trading; gains foothold in the off-exchange segment of U.S. equities market

By Pavithra R

Cboe Global Markets, a market operator and global trading solutions provider, has announced the completion of its acquisition of BIDS Trading, a registered broker-dealer and the operator of the BIDS Alternative Trading System (ATS), the largest block-trading ATS by volume in the U.S.

Through the acquisition, Cboe is expected to gain a competitive foothold in the off-exchange segment of the U.S. equities market, which accounts for more than 40% of overall U.S. equities trading volume now. This step will also provide Cboe with the opportunity to expand its global footprint and diversify its product and service offerings beyond U.S. equities and options.

“Through our successful collaboration on Cboe LIS, Cboe and BIDS Trading have established a proven track record in delivering best-in-class block trading capabilities for European equities. We are excited to have Cboe’s reach extend into the off-exchange segment of the U.S. equity markets through its ownership of BIDS Trading, and to broaden our ability to potentially expand into other asset classes and geographies as well. I am pleased to welcome the entire BIDS Trading team to Cboe,” said Cboe Global Markets Chairman, President and CEO Ed Tilly.

The acquisition follows Cboe and BIDS Trading’s collaboration in Europe, which initiated in 2016 with the creation of Cboe LIS for European equities block trading.

“We have had a long and fruitful relationship with Cboe and have achieved remarkable success with Cboe LIS in Europe, and we are excited by the additional opportunities and benefits that this acquisition could bring to BIDS Trading subscribers and sponsored users. We look forward to becoming a part of the Cboe Global Markets family and continuing to build on our history of successful innovation,” said BIDS Trading CEO Tim Mahoney.

BIDS ATS will operate as an independently managed and operated trading venue, not integrated with the Cboe U.S. securities exchanges. CEO Tim Mahoney will remain in his current role and lead BIDS Trading as an independent business within Cboe Global Markets, reporting into an independent committee of the board of Cboe Global Markets.

Established since 1973, Cboe Global Markets provides cutting-edge trading and investment solutions to market participants around the world. The firm is committed to defining markets through product innovation, leading-edge technology and seamless trading solutions.