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Why a CBOE and Bats Global merger makes sense

News Analysis: Details of a potential tie-up are limited but, taken at face value, a merger makes sense in many ways. Here's why...

CBOE is still one of the few exchanges to operate an open outcry floor
CBOE is still one of the few exchanges to operate an open outcry floor Photo: Getty Images

Two major US exchange groups, CBOE Holdings and Bats Global Markets, are reportedly in talks over the global exchange sector's latest multibillion-dollar merger.

Chicago-based CBOE, which operates in the lucrative US equity options market and owns the popular Vix volatility indices, would be the bigger party in any deal, with a valuation of around $5.6 billion.

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