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Cboe Targets 2021 Expansion Of European Equity Derivatives

Renato Capelj

The Cboe Global Markets Inc. (BATS: CBOE), a U.S. exchange owner and operator, announced this week its aim to expand its European equity derivatives portfolio next year, launching futures and options on equity indices.

The move comes after Cboe finalized its acquisition of EuroCCP, a pan-European equities clearing house. The move provides Cboe with the tools necessary to develop its equity derivatives trading and clearing capabilities in the region.

Ed Tilly, chairman, president and CEO of Cboe Global Markets said at a London press briefing his firm's aim is to assist clients in using capital efficiently, allowing for such things as portfolio margining, which reduces margin requirements for qualifying investors.

Though the acquisition of EuroCCP as well as expansion of equity derivatives trading and clearing in Europe will have a positive impact on long-term returns, the venture is expected to be dilutive to earnings for up to four years, according to Markets Media.

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