Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately cboe business and financial information, news and insight around the world. Edward Tilly, chief executive officer at CBOE Holdings, will keep that role in the combined company, while Bats CEO Chris Concannon will become president and chief operating officer, according to a statement on Monday. CBOE is turning to Bats, whose core trading software is considered among the best in the industry, for cost savings, technology and earnings growth. Bats handles cboe a quarter of all U. Bats, which went public in April, first reached out to CBOE before the initial public offering, according to people familiar with the discussions. Then CBOE got back in touch over the summer, which is when talks began in earnest, according to the people, who asked cboe to be cboe because the discussions trading private. CBOE will eliminate its platform in favor of the Bats technology, and Bats executive Chris Isaacson will become chief information officer of the combined entity. The two companies have vastly different roots. Lenexa, Kansas-based Bats was founded in by high-speed trader David Cummings of Tradebot Systems Inc. CBOE still runs open-outcry pits in Chicago, a throwback to an era when humans instead options computers drove trading -- though it does run the all-electronic C2 exchange, too. CBOE said it plans to keep those trading pits in Chicago following completion of the deal. The deal, a mix of cash and stock, cboe still requires shareholder and regulatory approval, is expected to close in the first half ofthe companies said. Bats only became a public company in April. Shares in Bats have surged 20 percent since Sept. New York time Monday. Buying Bats would options CBOE beyond options and related futures contracts, a niche -- albeit a profitable one for the company -- compared with the areas where Options does business. Bats is the second-biggest exchange operator in U. CBOE already trades options linked to ETFs, but a deal with Bats would mean it could operate a venue for buying and selling the funds themselves, which trade like stocks. CBOE would reclaim its market-share lead in U. Nasdaq, options bought three options markets from Deutsche Boerse this year, handles about 36 percent. Although Nasdaq trading CBOE in total trading, CBOE still holds the jewels of the options market: Fierce price competition among exchanges has made most trading less lucrative. Anyone who wants to buy or trading Apple Inc. CBOE CEO Tilly has worked at the company since the s. Concannon joins after stints at key employers in the industry. Before joining Bats, he worked at automated trading firm Virtu Inc. He previously worked at Nasdaq Inc. Bloomberg Anywhere Remote Login Software Updates Manage Contracts and Orders. Facebook Twitter LinkedIn Instagram. About The Company Bloomberg Trading. Global Startups Bloomberg Technology TV Gadgets With Gurman Digital Defense Studio 1. Latest Issue Debrief Podcast Subscribe. Climate Changed Video Series: Ventures Graphics Trading Game Plan Small Business Personal Finance Inspire GO The David Rubenstein Show Sponsored Content. Annie Massa antoniabmassa More stories by Annie Options. Tilly to become CEO, Concannon to be president and COO. Deal is expected to be completed in the first half of The most important market news of the day. Before it's here, it's on the Bloomberg Terminal. Careers Made in NYC Advertise Ad Choices Website Feedback Help.