Cboe expanding Canadian footprint with purchase of NEO Exchange

·2 min read

TORONTO — U.S. exchange operator Cboe Global Markets Inc. is expanding its Canadian footprint by buying Aequitas Innovations, Inc., more commonly known as NEO, for an undisclosed price.

The deal announced Monday follows the Chicago-based company's 2020 acquisition of alternative trading system MatchNow.

Fully operational since 2015, the NEO Exchange is a Toronto-based Canadian stock exchange operator with business lines across listings, trading and market data. Its sister company, NEO Connect, provides a distribution platform supporting mutual funds, private funds and private corporates.

Cboe says NEO and MatchNow will provide "a comprehensive equities platform for the Canadian markets with over 16.5 per cent combined market share," it said in a news release.

The deal is expected to close in first half of 2022, subject to regulatory approvals.

Cboe chief executive Ed Tilly says the addition of NEO will help it to create "a first-class equities offering in Canada" and bring the company closer to its 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," he said in a news release.

NEO chief executive Jos Schmitt says Cboe's core strengths will allow it to develop innovative solutions for 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.”

This report by The Canadian Press was first published Nov. 15, 2021.

The Canadian Press

Note to readers: This is a corrected story. A previous version included a misspelling of Ed Tilly's name.

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