Aquis Exchange and Cboe Europe to Launch SimpliCT to Explore Bid for EU Equities Consolidated Tape

AMSTERDAM and PARIS and LONDON, Oct. 29, 2024 /PRNewswire/ -- Aquis Exchange PLC (Aquis), a creator and facilitator of next-generation financial markets, and Cboe Europe (Cboe), a division of Cboe Global Markets, Inc., the world's leading derivatives and securities exchange network, are today pleased to announce their intention to form a joint venture which plans to explore a bid to perform the role of the EU's equity consolidated tape (CT) provider. The selection process for the EU equity CT is expected to begin in June 2025, with a successful applicant chosen by the end of 2025.

Aquis and Cboe, operators of pan-European equity exchanges, technology and reporting services that collectively process over half of daily European equity trades, plan to establish and co-own a new company named SimpliCT (pronounced: simplicity), which will be based in the Netherlands and seek to leverage the expertise of its founders to develop a best-of-breed equity CT.

SimpliCT's aim would be to deliver a high-quality and reliable consolidated tape that provides a simplified, comprehensive and cost-efficient view of market activity, benefiting the widest possible range of participants. It would be supported by a commercial and governance framework designed to ensure fair treatment of both data contributors and consumers.

This initiative exemplifies Aquis and Cboe's shared commitment and strong track record in developing pan-European solutions aligned to the vision of the EU's Capital Markets Union. The goal is to enhance the competitiveness of EU equity markets and attract global capital flows by increasing the visibility of European issuers both within Europe and internationally, while making European markets simpler and cheaper to access.

Key points of the arrangement include:

• Aquis and Cboe will be equal shareholders of SimpliCT
• A dedicated SimpliCT management team and industry advisory committee would be appointed in due course
• If SimpliCT is successful in the selection process, Aquis and Cboe will each contribute expertise, technology and capabilities to SimpliCT

Natan Tiefenbrun, President, North American and European Equities, Cboe Global Markets, stated: "As a firm that has consistently championed for the introduction of a consolidated tape, we are thrilled to be launching SimpliCT in partnership with Aquis, who share our long-held belief in the significant benefits a well-operated and governed tape can bring to EU capital markets. As one of the most important market infrastructure developments the EU has introduced for many years, it requires a provider that has the necessary technical, operational, and commercial expertise, and is aligned to policy makers' vision and objectives for the tape. SimpliCT has been created to meet this ambitious goal, by seeking to leverage the leading capabilities of its founder firms and their unwavering commitment to see it succeed."

Alasdair Haynes, Chief Executive, Aquis, commented: "Aquis has long been an advocate of a consolidated tape in Europe, and is delighted to be partnering with Cboe, an operator that has been similarly steadfast in its commitment. The advantages to the industry of establishing a tape have been clear for many years, and both Aquis and Cboe have been strong supporters. Together with Cboe, we have identified a clear opportunity to serve the financial community as an independent and competitive operator through the formation of SimpliCT. This proposed joint venture would not only represent a cost-efficient, robust business model that integrates advanced complementary, proprietary technologies, it would also be designed to deliver fair compensation for data contribution, aligning the interests of contributors and consumers."

The European Commission has mandated the creation of a single entity to operate a real-time pre- and post-trade CT for equities for five years as part of the MiFIR Review, which came into force in April 2024. The task of selecting the equity CT has been delegated to the European Securities and Market Authority (ESMA). It is expected to begin the selection process in June 2025 and choose a successful applicant by the end of 2025.

Aquis and Cboe, which operate trading venues in the EU and UK, have substantial levels of technical, operational, and commercial expertise as highly experienced operators of EU-regulated venues, trade reporting and data services. Together, they contribute significantly to EU equities data, with more than half of EU equity trades either traded or reported on Aquis and Cboe platforms.

For more information about SimpliCT, please contact us at: [e-mail]

About Cboe Europe

In Europe, Cboe is a leading operator of pan-European equity and derivatives trading and clearing services, including the largest pan-European stock exchange by market share and the most connected open-access CCP.

Through exchanges in the Netherlands and the UK, we offer a range of equity execution mechanisms to allow our clients to trade in a way that best suits them - whether their priority is speed and certainty of execution, discovering block liquidity, capturing price improvement, minimising information leakage, or optimising explicit costs.

We also operate the largest pan-European equity trade reporting service, as well as low-cost European equity market data and benchmark equity indices services. Through our exchange and reporting services, we handle over half of all European equity trades and will be the largest single contributor to the EU equities tape.

In September 2021, we launched Cboe Europe Derivatives (CEDX), a pan-European derivatives marketplace based in Amsterdam, which enables participants to access a vibrant equity derivatives market through a single access point, creating efficiencies in trading and clearing.

Cboe's focus on innovative, pan-European solutions simplifies cross-border trading and helps make Europe an attractive marketplace to investors globally. For more information, visit: www.cboe.com/europe

About Aquis Exchange

Aquis Exchange PLC ("Aquis") is Europe's challenger exchange, creating better markets for a modern economy. Aquis has market-leading technology and innovative rules for trading, and offer primary listings and secondary trading of equities, along with global licensing of proprietary technology.

Aquis consists of four divisions:

Aquis Markets operates lit and dark order books, covering 16 European markets. For its lit books, Aquis uses a subscription pricing model which works by charging users according to the message traffic they generate, rather than a percentage of the value of each stock that they trade.

Aquis Technologies is the software and technology division of Aquis. It focuses on building better markets via the creation and licensing of cutting-edge, cost-effective exchange infrastructure technology and services, including matching engine and trade surveillance solutions.

Aquis Stock Exchange (AQSE) is a stock market providing primary and secondary markets for equity and debt products. It is authorised as a Recognised Investment Exchange, which allows it to operate a regulated listings venue. The AQSE Growth Market is divided into two segments 'Access' and 'Apex'; the Access market focuses on earlier stage growth companies, while Apex is the intended market for larger, more established businesses.

Aquis Data generates revenue from the sale of data derived from Aquis Markets and Aquis Stock Exchange to non-Member market participants.

Aquis is authorised and regulated by the UK Financial Conduct Authority and France's Autorité de contrôle prudentiel et de résolution and L'Autorité des marchés financiers to operate Multilateral Trading Facility businesses in the UK & Switzerland markets and in EU27 markets respectively. Aquis Exchange PLC is quoted on the Aquis Stock Exchange and on the AIM Market (AIM) of the LSE. For more information, please go to www.aquis.eu.

About Cboe Global Markets, Inc.

Cboe Global Markets (Cboe: CBOE), the world's leading derivatives and securities exchange network, delivers cutting-edge trading, clearing and investment solutions to people around the world. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives, FX, and digital assets, across North America, Europe and Asia Pacific. Above all, we are committed to building a trusted, inclusive global marketplace that enables people to pursue a sustainable financial future. To learn more about the Exchange for the World Stage, visit www.cboe.com.

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Some factors that could cause actual results to differ include: the loss of our right to exclusively list and trade certain index options and futures products; economic, political and market conditions; compliance with legal and regulatory obligations; price competition and consolidation in our industry; decreases in trading or clearing volumes, market data fees or a shift in the mix of products traded on our exchanges; legislative or regulatory changes or changes in tax regimes; our ability to protect our systems and communication networks from security vulnerabilities and breaches; our ability to attract and retain skilled management and other personnel; increasing competition by foreign and domestic entities; our dependence on and exposure to risk from third parties; global expansion of operations; factors that impact the quality and integrity of our and other applicable indices; our ability to manage our growth and strategic acquisitions or alliances effectively;  our ability to operate our business without violating the intellectual property rights of others and the costs associated with protecting our intellectual property rights; our ability to minimize the risks, including our credit, counterparty, investment, and default risks, associated with operating a European clearinghouse; our ability to accommodate trading and clearing volume and transaction traffic, including significant increases, without failure or degradation of performance of our systems; misconduct by those who use our markets or our products or for whom we clear transactions; challenges to our use of open source software code; our ability to meet our compliance obligations, including managing potential conflicts between our regulatory responsibilities and our for-profit status; our ability to maintain BIDS Trading as an independently managed and operated trading venue, separate from and not integrated with our registered national securities exchanges; damage to our reputation; the ability of our compliance and risk management methods to effectively monitor and manage our risks; restrictions imposed by our debt obligations and our ability to make payments on or refinance our debt obligations; our ability to maintain an investment grade credit rating; impairment of our goodwill, long-lived assets, investments or intangible assets; the impacts of pandemics; the accuracy of our estimates and expectations; litigation risks and other liabilities; and risks relating to digital assets, including winding down the Cboe Digital spot crypto market and transitioning digital asset futures contracts to CFE, operating a digital assets futures clearinghouse, cybercrime, changes in digital asset regulation, and fluctuations in digital asset prices. More detailed information about factors that may affect our actual results to differ may be found in our filings with the SEC, including in our Annual Report on Form 10-K for the year ended December 31, 2023 and other filings made from time to time with the SEC.

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