Cboe Global Markets has agreed to acquire a minority equity stake in Japannext Co., Ltd. It will be through a purchase of shares from SBI Holdings Inc. (SBI). The acquisition involves a 14.8% ownership interest to expand its presence in Japan, one of the world’s largest capital markets.
Under the terms of the agreement, SBI Holdings will transfer a 14.8% stake in Japannext to Cboe pending regulatory approval. The parties executed the Memorandum of Understanding (MoU) in October 2022. This acquisition aims to enhance innovation and competitiveness in the Japanese capital markets.
This acquisition will have the following effects on traders and investors:
Cboe’s entry as a shareholder in Japannext may boost competition in Japan’s capital markets. It can offer tighter spreads and lower trading costs. Traders and investors can have more favorable trading conditions.
With Cboe’s involvement, Japannext may introduce new products or services, giving traders and investors more options to diversify their portfolios and execute different trading strategies.
Cboe’s advanced technology could improve trading platforms and tools. It can offer a better trading experience with faster execution, more transparency, and advanced data analytics.
Cboe’s global network and expertise may facilitate new connections between Japannext and other international markets, providing multiple global trading opportunities to Japanese traders and investors.
Having a major global player like Cboe invest in Japannext could enhance the market’s credibility, possibly attracting more investors and increasing market liquidity. This could result in a more stable trading environment.
Cboe Global Markets operates a derivatives and securities exchange network. It provides trading solutions and products across multiple asset classes, including equities, derivatives, and FX, in North America, Europe, and Asia Pacific. The company’s goal is to build a trusted, inclusive global marketplace and enable people to pursue a sustainable financial future.
Japannext Co., Ltd. operates Japan’s first full-fledged Proprietary Trading System (PTS) market. It connects multiple securities firms and enables investors to trade stocks outside the traditional exchanges. Japannext began its nighttime PTS trading in August 2007 and added daytime sessions in October 2008. It is the second-largest trading market in Japan after the Tokyo Stock Exchange. Over 30 major domestic and foreign securities companies participate. Japannext aims to enhance trading convenience and increase market liquidity by offering more opportunities for investors.
Cboe’s involvement will bring new technology-driven initiatives that could benefit Japanese investors. Both companies anticipate a strengthened partnership to support the continued growth and development of Japan’s capital markets.
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