CBOE’s FX Market Share Jumps to New High, Spurred By Asian, European Trading

CBOE managed to achieve a record high 14.5 percent FX market share in October.

CBOE’s (NASDAQ:CBOE) FX market share continues to rise in H2, with the segment gaining momentum over the past year, following its strategic acquisition of Bats Global Markets. The latest figures has seen CBOE’s FX figures capture a new record high market share of 14.5 percent, besting a previous high of 13.6 percent from 2013.

CBOE was one of the biggest movers in the FX space in late 2016 when it acquired Bats Global Markets in a landmark $3.2 billion deal. The deal was hugely important for CBOE as it looked to make a splash in the FX field, tapping into one of the largest exchange operators serving the market at the time.

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Bryan Harkins, Head of U.S. Equities and Global FX at CBOE, commented: “Our record month in October was really a testament to the efforts we’re putting forth to meet the needs of our expanding customer base across Europe and Asia.”

On its part, Bats was also a significant player in FX, making its own marquee acquisition of KCG Hotspot back in 2015 for $365 million. Subsequently, the ongoing consolidation in the FX space has helped drive up CBOE’s FX volumes, which have risen over four-fold since its September 2016 acquisition of Bats Global Markets.

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Market share on the rise

CBOE has really grown as a force in the FX arena over the past few years. As recently as 2010 the group saw only a 6 percent market share in FX, which has now surged to 14.5 percent in October 2017. In terms of other specifics, CBOE’s FX ADV jumped 26.7 percent on a yearly basis to $32.0 billion in October 2017.

Bryan Harkins

Of note, the uptick in volumes at CBOE during this period was attributed to a jump in activity from European and Asian trading sessions. In particular, CBOE’s FX London matching engine, launched back in 2015, has been a particular all-star in this regard.

“Our growing market share is an indication that customers are beginning to see the benefits of our investment in analytics and liquidity management, and we plan to continue to proactively partner with them to improve their trading experience,” explained Mr. Harkins.

This matching engine has doubled its volume this year with its ADV traded in October 2017 now swelling above $4.8 billion, its second highest mark ever. CBOE’s London matching engine now accounts for over 15 percent of CBOE’s FX volume, up from just 8 percent back in Q4 2016.

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