NEO: Cboe to acquire 2nd most active stock exchange in Canada

Rick Steves

The firm expects the deal to drive more trading activity on Cboe markets as well as efficiencies and opportunities for investors and capital-raisers in both Canada and the U.S.

Cboe has announced it has entered into a definitive agreement to acquire NEO, a fully registered Tier-1 Canadian securities exchange.

NEO is the brand name of Aequitas Innovations and its securities exchange boasts a diverse product and services set ranging from corporate listings to cash equity trading.

Cboe chose to buy NEO in order to enhance its Canadian equities offering, which will include a national securities exchange with trading, listings and other services, in addition to MATCHNow, the alternative trading system (ATS) acquired by Cboe in 2020.

The firm expects the deal to drive more trading activity on Cboe markets as well as efficiencies and opportunities for investors and capital-raisers in both Canada and the U.S.

The NEO Exchange is a Toronto-based Canadian stock exchange operator launched in 2015. Its sister company, NEO Connect, provides a distribution platform supporting mutual funds, private funds and private corporates.

Ed Tilly, Chairman, President and CEO of Cboe Global Markets, said: “Adding NEO to the Cboe network better enables us to create a first-class equities offering in Canada, bolstering our global markets in North America, Europe and Asia Pacific, and bringing us one step closer to our vision of building one of the world’s largest global derivatives and securities trading networks.

“With MATCHNow and NEO, Cboe can achieve scale in Canada, creating efficiencies for our combined customers with familiar technology and consistent market models. I look forward to working with the entire NEO team, whose innovative spirit, customer-first approach and drive for change will not only help us grow the NEO business, but also bring greater choice to market participants in Canada and across the globe.”

NEO could serve as base for Cboe’s potential expansion of its successful listings business into other geographies, powering these Canadian companies internationally through global capital raising opportunities.

Jos Schmitt, President and CEO of NEO, said: “We are excited to draw upon Cboe’s core strengths as a leading global market infrastructure provider to further develop innovative solutions that meet the needs of investors and capital-raisers around the world. Our commitment to innovation, fairness and putting investors and capital-raisers first will not only continue under Cboe’s ownership, but now benefit from the strength and support of Cboe’s technology, market expertise and global client distribution.”

NEO is the second most active stock exchange in Canada and provides three market models: NEO-L, a make-take model, NEO-N, an inverted model, and NEO-D, a darkpool.

The Canada-headquartered venue offers corporate, exchange traded product (ETP) and Canadian Depository Receipt (CDR) listings, real-time market data services, a distribution platform for unlisted securities, and an automated workflow supporting private placements.

The transaction is expected to close in the first half of 2022, subject to regulatory review and other customary closing conditions.

Read this next

Retail FX

Finalto sweetens offering for African traders with localized FX pairs

Finalto, the financial trading division of Gopher Investments, announced today that it has extended its offering with inclusion of a number of African Pairs to its trading platforms.

Digital Assets

BitMEX secures OAM registration to operate in Italy

Crypto exchange BitMEX has won regulatory approval from Italy’s financial regulators, allowing the exchange to continue serving Italian customers.

Institutional FX

FlexTrade integrates Glimpse’s post-trade bond execution data

“Looking further ahead, this integration also presents multiple opportunities for how fixed-income traders could leverage the trading data. For example, traders could tap Glimpse data as an input to AI-driven automation workflow strategies in the future.”

Industry News

FINRA fines UBS $2.5m for Reg SHO violations and supervisory failures

FINRA has fined UBS $2.5 million for Reg SHO violations and supervisory failures spanning a period of nine years.

Digital Assets

Bitfinex Pay launches feature that minimizes volatility risk

The currency conversion will take place every five minutes on any amount above $10.

Digital Assets

Mastercard launches Crypto Secure for risk assessment in digital asset space

“Crypto Secure will provide card issuers with a platform that allows them access to insights which will improve the safety of crypto purchases, increasing consumer confidence and creating the same trust they expect when paying with Mastercard.”

Retail FX

VT Markets wins 4 more awards including Best Forex Mobile App Global 2022

“Over the past few months, we have noticed a huge spike in downloads and daily active users on the VT Markets App. Our clients can trade multiple asset classes with ultra-low spreads, and access timely market news on our mobile app.”

Institutional FX

Blue Ocean ATS enhances price discovery and liquidity for after hours US stock trading

Liquidity and price discovery, missing from previous overnight trading solutions, are now possible utilizing the TNS network and managed service platform. Security of the private network and its access to all public clouds, uniformity of compliance and regulatory oversight, redundancy and recovery capabilities, plus the localized customer service around the world made TNS the best candidate for this major step in Blue Ocean Technologies’ growth.

Executive Moves, Retail FX

Equiti Group wins CySEC license to expand into Europe

“Regulation and good governance have always been and will continue to be a key part of Equiti’s business model.”