Enhancing our Presence in Asia Pacific Through Data

I recently had the pleasure of visiting Singapore and Sydney, spending time with our associates, as well as connecting with our valued customers to gain deeper insights into their evolving needs. During my visit, I met with several customers who expressed a continued interest in accessing European and U.S. equities market data. This did not come as a surprise but rather served as a reminder that investors in Asia Pacific are eager to tap into the opportunities presented by the U.S. and European markets.

Total market capitalization of the European equities market is approximately $10.24 trillion today. up from approximately $5.58 trillion in 2018, presenting an attractive opportunity for investors to diversify and grow their portfolios. And as Dave Howson explored a few months ago, foreign investors are specifically seeking access to U.S. markets, with foreign holdings of U.S. equities climbing from $17.1 trillion to $26.8 trillion between 2016 and 2023.

This makes sense. Over the past five years, the S&P 500 Index has experienced significant growth, with an average annual return of approximately 14.87%. This remarkable performance has been driven in part by the continuous rise in value of the "Magnificent Seven" – a group of leading technology companies including Apple, Microsoft, Amazon, Alphabet, Tesla, Nvidia, and Meta Platforms. These U.S. based companies have a global presence that draws interest from market participants worldwide who recognize the potential for growth and diversification. This trend underscores the importance of providing robust and reliable market data to participants around the globe. Quality market data is a crucial foundation for a successful investment strategy, especially when entering a new market. As more retail traders enter the market worldwide, we are keen on working with local brokerage firms to provide approachable education and informative data to enable retail traders to reach their goals.

Cboe One Feed helps meet this demand. The comprehensive market data feed provides high-quality reference quotes and trade data for U.S. equities with enterprise licensing options that are designed to cater to firms that need to distribute real-time market data to a large number of users. Cboe One Feed makes it easier for financial institutions worldwide to access and utilize the data they need to stay competitive in today's fast-paced markets. Similarly, in Europe Cboe’s equities market share was approximately 23% in Q3 2024, — and recently hit an intraday high watermark of 35.8% on November 27 — enabling us to provide insight into a significant segment of the European market.

Cboe delivers global opportunities through seamless, cross-border connections, which is valuable to customers as they grow their investment portfolios. While participants often begin their journey with equities, they are interested in expanding to other asset classes as time goes on and opportunities arise. The ease of connectivity makes it possible for market participants to expand their market knowledge as they move into new asset classes. Our options data feeds, for example, are a natural next step to begin understanding the options market and developing strategies to access the growing options market.

In addition to our existing comprehensive data offerings, we’ll soon look to establish a cloud presence in Singapore to enable further growth and more efficient access for our customers. This will not only enhance the speed and reliability of our services but also ensure compliance with local data regulations. By being closer to our customers in the region, we can provide a more responsive and tailored experience, fostering stronger relationships and driving innovation. This expansion will also allow us to tap into new market opportunities and better support our customers' needs in an evolving market environment.

We are excited about the enthusiasm for and evolution of capital markets in Asia Pacific and are ready to work with customers in the region to deliver the products and services they need to achieve their goals. As we continue to innovate and expand our offerings, we remain dedicated to supporting the global financial community with the tools and information they need to succeed.

The information provided is for general education and information purposes only. No statement provided should be construed as a recommendation to buy or sell a security, future, financial instrument, investment fund, or other investment product (collectively, a “financial product”), or to provide investment advice. © 2024 Cboe Exchange, Inc. All Rights Reserved.