Singapore Exchange Ltd (SGX) is weighing a potential acquisition of Cboe Global Markets’ Australian equities venue, Cboe Australia, the Australian Financial Review reported, citing people familiar with the discussions.
The AFR report said SGX has held preliminary talks with Cboe and its advisors about a possible offer. Cboe Australia declined to comment, the report said.
Cboe’s parent company has launched a sale process for Cboe Australia and Cboe Canada as part of a strategic review, putting the future ownership of Australia’s second-largest equities trading venue in play.
Cboe Australia accounts for roughly a fifth of share trading in the country, per the report, and Australia’s corporate regulator is working with the parent company to find a suitable buyer.
SGX’s last major push into Australia ended in 2011, when the government blocked its bid for ASX on national interest grounds.
The report comes as the Singapore exchange operator reported stronger cash equities and derivatives activity in October, saying institutional flows into Asian markets and heavier hedging demand helped lift volumes as global investors navigated shifting central-bank expectations and uneven economic signals.
SGX said securities market turnover value rose 26% from a year earlier to S$33.9 billion ($25.2 billion), while securities daily average value climbed 26% to S$1.54 billion. The benchmark Straits Times Index gained 3% from September to 4,428.62, taking its year-to-date gain to 16.9% and total return to 21.9%.
Singapore tops Southeast Asia’s IPO market so far this year, driven by major REIT listings and supported by market reforms and lower rates, according to Deloitte.
