Cboe to Withdraw from Japan's Stock Market
Cboe Global Markets, a leading market operator, has announced its decision to wind down its Japanese equities business due to evolving business conditions that have challenged the financial sustainability of maintaining operations in Japan's equities market.
The decision, which reflects Cboe's strategic focus on allocating resources to opportunities with better potential returns for shareholders, is expected to suspend the operations of the Cboe Japan proprietary trading system and Cboe BIDS Japan block trading platform on August 29, 2025, subject to regulatory consultation.
Despite this move, Cboe remains committed to serving Japan and its financial community. The company plans to maintain its presence in Japan through its global derivatives and Cboe Data Vantage businesses, emphasizing its commitment to serving the Japanese market in other ways, particularly through derivatives and data products.
Craig Donohue, CEO at Cboe Global Markets, expressed gratitude to partners, customers, and stakeholders in Japan, acknowledging their contributions to the company's success in the region. He assured that Cboe will continue to meet the demand of Japanese market participants for greater access to international markets with its high-quality market data and suite of tradable derivatives products.
The savings from the wind down of Cboe Japan equities operations are expected to be in the range of $10 million to $12 million on a normalized annual basis. The closure is not expected to significantly affect 2025 revenue or expenses, implying that the financial impact will be limited or offset by focusing on more sustainable areas of its business.
The details about the wind down of Cboe Japan equities operations will be discussed during the forthcoming second-quarter 2025 earnings call on August 1, 2025. A conference call with remarks by the company's senior management will begin at 7:30 a.m. CT (8:30 a.m. ET). A live audio webcast for the conference call and the presentation that will be referenced during the call will be available on the Investor Relations section of Cboe's website at ir.cboe.com under Events.
The wind down of Cboe Japan equities operations is estimated to have an immaterial impact on Cboe's organic total net revenue growth and adjusted operating expense guidance in 2025. The company's disciplined strategy to steward resources towards opportunities that deliver the best potential returns for shareholders is evident in this decision.
In summary, Cboe Global Markets is winding down its Japanese equities business, a move aimed at improving returns for shareholders and focusing on more sustainable areas of its business. Despite this, the company remains committed to serving Japan and its financial community through its global derivatives and Cboe Data Vantage businesses.
Investing in opportunities with better potential returns for shareholders is the strategic focus that led Cboe Global Markets to wind down its Japanese equities business. As a result, the company plans to allocate resources to its global derivatives and Cboe Data Vantage businesses in order to continue serving Japan and its financial community.
