M&A always make me nervous, especially when a Chicago based company is involved.
As much as I am the CME Group superfan, I think having two big exchanges in Chicago would be good for both exchanges and great for the city's undented position as a global financial center. ... even though ... no one ... seems to know that about Chicago.
This is big, big news.
Bats Needs to Close This Deal Fast
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For some time now CBOE has been considered one of the industry's most likely takeover candidates and arguably more attractive than Bats. Its unique position of having a monopoly over S&P 500 and VIX options makes it quite appealing as exchanges face stiffening price competition over most other securities. So, you can't rule out the prospect of previously acquisitive companies trying to break up the Bats deal by bidding for CBOE instead. CME Group, Nasdaq and Intercontinental Exchange (which bought the New York Stock Exchange in 2013) all come to mind.
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CBOE, Bats Deal Creates New Exchange Behemoth
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The move also comes as London Stock Exchange Group PLC and Germany’s Deutsche Börse have agreed to a tie-up that would leave it, Chicago-based CME Group, ICE, Nasdaq and CBOE as five giant global exchange companies.
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