CBOE to acquire ErisX crypto-derivatives exchange

The CBOE, a Chicago-based options exchange regulated by the CFTC, said it would acquire ErisX, a US-based trading and clearing platform for digital assets and their derivatives.

We’re excited to announce our plans to acquire @ErisX_Digital. Learn more at https://t.co/Zcybvwhq0k. #DefiningMarkets pic.twitter.com/nGJOW864iN

— Cboe (@CBOE) October 20, 2021

ErisX, regulated by the CFTC, will be renamed CBOE Digital.

Within the deal’s scope are Eris Clearing, registered with FinCEN and the New York Department of Financial Services as a derivatives clearing organization (DCO), and Eris Exchange, licensed as a designated contract market (DCM).

ErisX’s offerings include spot trading:

• Bitcoin, Bitcoin Cash, Litecoin, Ethereum and USDC in USD pairs;
• Bitcoin Cash, Litecoin, Ethereum in pairs against Bitcoin;
• Bitcoin and Ethereum in pairs against USDC.

ErisX also offers deliverable and cash-settled futures on Bitcoin and Ethereum.

The deal will require approval from the CFTC and 40 other regulators. Finalisation is expected in the first half of 2022.

Financial terms are not disclosed. To finance the acquisition, CBOE will take on debt.

CBOE has formed an advisory council comprising representatives from retail brokers, crypto firms and investment banks. Among them are DRW, Fidelity Digital Assets, Galaxy Digital, Interactive Brokers, NYDIG, Paxos, Robinhood, Virtu Financial and Webull. Some members of the council intend to acquire minority stakes in CBOE Digital and operate as partners in developing the business.

By acquiring ErisX, CBOE will provide institutions that meet regulatory requirements with access to digital assets, which will form the basis for product development for their clients.

CBOE Digital intends to develop and promote digital-asset-based indices for use in creating ETP and other derivative products.

“With ErisX, the CBOE will enter the ecosystem of digital assets, data, derivatives and clearing in one step. Now is the right time to fully embrace and help define this new asset class. With one transaction we will obtain a spot market that will generate data with derivatives, and a centre for information exchange — all in one,” said CoinDesk chief operating officer and executive vice-president of the exchange, Chris Isaacson.

As reported, CBOE was the first regulated exchange to launch Bitcoin futures on December 11, 2017. On June 19, 2019, amid bear market conditions and competition with CME, the platform delisted this instrument. In March this year, CBOE allowed the resumption of Bitcoin futures listings in response to growing demand from retail and institutional investors.

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