"This deal reshapes the US options market landscape," said a trader familiar with the merger. MEMX LLC, known for challenging the NYSE and Nasdaq stronghold since its 2019 launch, is joining forces with BOX Options Market in a $2.3 billion transaction that hands Canada’s TMX Group majority ownership. TMX is investing roughly $800 million in cash and rolling its BOX shares to claim about 59% of the new MEMX Group, leaving the remaining stake with MEMX’s prominent backers like Jane Street, Morgan Stanley, and Citadel Securities.
Together, the merged group will manage three US options exchanges as well as an equities exchange and a technology platform. In 2025, MEMX and BOX combined to generate $280 million in revenue with an adjusted EBITDA of $134 million, marking a healthy 48% margin. BOX’s hybrid trading model complements MEMX’s upcoming expansion into options through its MX2 platform, set to begin phased rollout later this year. The deal is expected to close in the latter half of 2027 after regulatory green lights.
The implications reach beyond traditional markets. MEMX’s technology powers EDX Markets, a digital asset exchange backed by Citadel Securities and Fidelity, illustrating its capability to handle crypto-adjacent infrastructure. TMX Group itself has experience listing crypto ETFs in Canada ahead of similar US approvals, signaling potential growth paths for digital asset integration. Investors are pricing the merger at about eight times 2025 revenue and 17 times EBITDA, reflecting optimistic expectations for future growth beyond current earnings.
Such a consolidation could reshape the US trading ecosystem while hinting at broader convergence between conventional and crypto markets. Meanwhile, options traders and market participants are watching closely as this new entity prepares to launch innovative products and assert influence in an increasingly competitive environment.
This material is for informational purposes only and does not constitute financial advice.
