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US: CBOE agrees to buy stock exchange

By  |  September 26, 2016

Two Midwestern exchange operators have agreed to combine in a deal that will potentially merge two of the largest trading venues in the United States.

CBOE Holdings, which owns the Chicago Board Options Exchange offered $3.2 billion in cash and stock to acquire Kansas-based Bats Global Markets according to a statement released by the companies. CBOE is the largest American options exchange, and Bats is the second-largest stock exchange operator in the US by volume, behind the New York Stock Exchange.

Within five years after closing the deal, CBOE expects to generate cost savings of an estimated $65 million by using just one trading platform and streamlining various expenses.

If the deal closes as expected, Edward T. Tilly, CBOE’s chief executive, will retain that role for the combined company. Chris Concannon, Bats’s chief executive, will become president and chief operating officer.

Full Content: The New York Times

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