Chigago-based Cboe Global Markets Inc. has announced plans to acquire a 14.8% stake in Japannext Co. Ltd., the country’s oldest and most established proprietary trading system (PTS), through SBI Holdings, the largest shareholder in the Japanese company.

Established in 2006, Japannext specializes in operating alternative markets and delivering financial services solutions.

Cboe’s investment comes after the introduction of its BIDS trading brand in Japan last year. BIDS, a registered broker-dealer, operates the BIDS Alternative Trading System (ATS). By acquiring a stake in Japannext, Cboe reinforces its long-term commitment to expanding its presence in Japan.

“Japan is one of the world’s largest and most important capital marketplaces and this investment reaffirms Cboe’s strong commitment to Japan,” said Cboe CEO Fred Tomczyk, who further emphasized that Cboe Japan will continue to operate independently from Japannext despite the investment.

“Cboe is committed to meeting the changing dynamics of Japan’s capital markets, and we look forward to working with all market participants to help drive the further evolution of Japan’s markets in ways that create more choice and benefits for investors,” he added.

Japannext Representative Director and CEO Masakatsu Yamada shared the same optimism: “We believe that this partnership will promote innovation in the Japanese capital markets in ways that increase competitiveness, reduce trading costs, and provide more choices for investors.”

SBI Holdings Representative Director, Chairman, President, and CEO Yoshitaka Kitao welcomed Cboe’s involvement: We are pleased to have Cboe participate as a shareholder of Japannext and recognize that both organizations share many commonalities, such as leading innovation in the financial industry by leveraging cutting-edge technology.”