Deals
Chicago Board Options Exchange’s Owner Said to Mull Buying Bats
- Bats shares, which started trading in April, surge on news
- Deal would push CBOE beyond the niche business of options
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CBOE Holdings Inc. is in talks to acquire Bats Global Markets Inc., according to people familiar with the matter, which would unite the Chicago Board Options Exchange’s 43-year-old owner that still runs pits where humans trade contracts with a fully electronic stock market.
“You’re combining a premium product exchange with a scrappy upstart,” said Rich Repetto, an exchange analyst at Sandler O’Neill & Partners LP. “If both parties are motivated, they could successfully merge because there are plenty of areas where they don’t conflict or overlap.”