Cboe completes acquisition of Canadian securities exchange NEO

Rick Steves

NEO Exchange is a Toronto-based Canadian stock exchange operator that is fully operational since 2015. 

CBOE LIVEVOL

Cboe Global Markets has completed the acquisition of NEO Exchange, a fully registered Canadian securities exchange with a diverse product and services set ranging from corporate listings to cash equities trading and a non-listed securities distribution platform (NEO Connect).

The deal was first announced in November 2021. The world’s largest derivatives exchange company expects to provide an enhanced Canadian equities offering, bringing global infrastructure and market expertise to further grow Canada as a hub for global equities trading.

Cboe’s Canadian operations include MATCHNow, the alternative trading system (ATS) acquired by Cboe in 2020, and Cboe BIDS Canada, a Canadian equities block trading venue launched in February 2022. NEO is the latest addition, which puts Cboe is a position of holding approximately 15.6% combined equities market share in Canada.

MATCHNow and NEO under the same umbrella

Ed Tilly, Chairman and CEO of Cboe Global Markets, said: “With NEO, we are creating another connection across borders through our network of trusted markets, enabling Canadian clients to pursue global growth opportunities through innovation, enhanced technology and access to new ways of trading and listing. Our global strategy is focused on developing a seamless experience for our combined customers and I can’t wait to work with the entire NEO team to bring greater choice to market participants in Canada and across the globe.”

Jos Schmitt, Senior Vice President, Global Listings and NEO President, said: “It is an exciting time to join Cboe, which has grown beyond its options heritage into one of the largest global market infrastructure providers in the world. With Cboe’s expertise in operating global equity, derivatives and, most recently, digital asset markets, we have a unique opportunity to not only enhance Canadian markets, but also work together on potential new market data solutions that will integrate data from the U.S., Canada, Europe and other global platforms. The NEO team will be instrumental in helping to grow a global listings offering, leveraging the strength of NEO’s existing listings business in Canada. We will continue to put investors and capital-raisers first as we work with Cboe to create an exceptional experience for companies seeking access to liquidity and capital formation globally.”

The acquisition will promote economies of scale, market expertise and client distribution that can further propel NEO’s growth to benefit the Canadian marketplace.

Bringing the MATCHNow and NEO businesses under the same corporate umbrella will help allow Cboe to bring increased competition to Canada through a holistic equities offering with market data, access services and listings.

Senior Vice President, Global Listings and NEO President, Jos Schmitt will remain as head of the NEO business, reporting to David Howson, EVP, Global President of Cboe.

Bryan Blake, Vice President, Canadian Equities, will provide strategic leadership and direction to the transaction side of the NEO business, reporting to Adam Inzirillo, Senior Vice President, North American Equities.

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