Cboe is shuttering its Japan equities business, including its proprietary trading system and block trading system Cboe BIDS Japan.
Volumes at Cboe BIDS Japan collapsed in 2024, hitting zero between 26 July and 2 September 2024. Average monthly shares traded dropped by 90% between January 2023 and January 2025, falling from 414300.5 to 9878.
On a yearly basis, the average trade count in 2023 was 3476, with volumes of 214,000. In 2024, these figures were 349 and 58,000 respectively.
Cboe BIDS Japan was created after Cboe acquired Chi-X Asia Pacific in July 2021.
Operations are planned to be suspended on 29 August, with the businesses formally closed after consultation with regulators.
Cboe stated that its closure of the businesses is strategic, adding, “The decision to close this business reflects Cboe’s disciplined strategy to steward resources towards opportunities that deliver the best potential returns for shareholders and was taken in the context of evolving business conditions, which challenged the financial sustainability of maintaining operations of Cboe’s equities business in the country.”
The details of these “evolving business decisions” were not shared.
“[Cboe] anticipates that the wind down of the Cboe Japan equities operations will have an immaterial impact on Cboe’s organic total net revenue growth and adjusted operating expense guidance in 2025,” it added.
The venue will continue to operate its global derivatives and Data Vantage businesses in the region.
Last year, Cboe took a 14.8% share in proprietary trading venue Japannext in an effort to expand its presence in the country beyond Cboe Japan. It stated that the two venues would be run independently.
READ MORE: Cboe to acquire 14.8% stake in Japannext
Established by brokerage firms SBI Securities, Rakuten Securities, Orix Securities, and Click Securities in 2006, Japannext now holds 5% market share in the country. Goldman Sachs Japan is also a stakeholder.
Cboe did not respond to requests for comment on the matter.
