Cboe to acquire NEO Exchange

Chicago-based exchange operator Cboe Global Markets Inc. said Monday that it’s purchasing Aequitas Innovations Inc., more commonly known as NEO, as it expands its footprint in Canada.

The acquisition of the Toronto-based NEO Exchange will be Cboe’s second in Canada after its purchase last year of alternative trading system MATCHNow.

When the deal closes, Cboe will be able to provide “a comprehensive equities platform for the Canadian markets” with more than 16.5% market share, according to a release.

Terms of the deal — which is expected to close in the first half of 2022, pending regulatory review — were not disclosed.

Ed Tilly, Cboe Global Markets’ chairman, president and CEO, said the NEO acquisition fits the company’s vision to become one of the 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,” Tilly said in a statement.

Cboe plans to support NEO’s growth and potentially expand its listings business into other regions, the release said.

In a separate release, NEO said Cboe is committed to maintaining the exchange’s ethos. The Chicago firm is the “ideal partner” to help NEO achieve a five-year growth plan, it said.

“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,” said Jos Schmitt, NEO’s president and CEO, in a statement.

Mark Burgess

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Mark was the managing editor of Advisor.ca from 2017 to 2024.