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Chicago Stock Exchange's board again reviewing strategic options, possible sale

Chicago Stock Exchange Inc.'s board is again exploring its strategic options, including a potential sale of the company.

The exchange operator is coming off a two-year saga in which its previously agreed-upon merger agreement with North America Casin Holdings Inc., a Chinese-tied investor group, was heavily scrutinized by lawmakers and regulators. The SEC officially rejected the bid Feb. 15, citing continued vagueness around the proposed ownership structure.

The Chicago Stock Exchange and the investor group officially terminated the deal agreement March 5.

Now, the small stock exchange is looking toward the future. The company's board has not set a definitive timeline for the review process and does not plan to make any further announcements until the board approves a specific transaction or otherwise determines that an announcement is necessary, the company said in a statement.

Analysts have pegged the Chicago Stock Exchange as a prime acquisition target.

With less than 1% of equity market share, the company is overshadowed by its much larger competitors, including New York Stock Exchange-owner Intercontinental Exchange Inc., Nasdaq Inc. and Cboe Global Markets Inc.

Interest in the exchange operator could vary from private equity companies to fellow exchange operators such as IEX Services LLC and TMX Group Ltd., analysts said.

The exchange operator may also become an increasingly attractive target for digital currency exchanges including Coinbase Inc., Greenwich Associates analyst Richard Johnson previously said in an interview. Cryptocurrency trading venues could be drawn to the Chicago Stock Exchange's exchange license, as regulators continue to indicate that virtual currency exchanges like Coinbase may need to eventually register under the Exchange Act.