The Chicago Board Options Exchange, commonly known as the CBOE, is in talks to buy Kansas-based Bats Global Markets, according to Matthew Monks at Bloomberg.
A sale of Bats, which is the second largest equity market in the US, would come less than six months after the company went public. Shares priced at $19 at the IPO, and closed at around $26.53 on Thursday. That gave it a market cap of around $2.6 billion.
The CBOE is the largest US options exchange, and is valued at around $5.65 billion.
Bats has consistently sought to upend the Wall Street establishment, competing with establishment names like the New York Stock Exchange and Nasdaq. Started in 2005, the firm is known for aggressively competing for market share. It trades around a quarter ofEuropean stocks every day, andaround 20% of US stocks.
In March, it launched a new gauge of stock market volatility with the options specialist T3Index. The index, known as SPYIX, or Spikes, competes with the widely used CBOE volatility index, which is known as the VIX and is often described as the “Fear Index.”
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