- Builds on Cboe's footprint in
North America , adding a registered Canadian securities exchange with diverse product set - NEO joins Cboe's global securities and derivatives network, bringing Cboe's innovation and technology to Canadian markets
- Cboe to plan global ETP and corporate listings strategy focused on seamless customer experience
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today announced it has acquired NEO1, a fintech organization comprised of a fully registered Canadian securities exchange (NEO 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).
NEO Exchange is a next generation stock exchange focused on fairness, liquidity, transparency and efficiency that brings together investors and capital-raisers, serving as a central force driving the Canadian capital markets forward. NEO Connect provides a distribution platform supporting mutual funds, private funds and private corporates.
With ownership of NEO, Cboe expects to provide an enhanced Canadian equities offering, bringing global infrastructure and market expertise to further grow
Cboe brings an innovative mindset, economies of scale, market expertise and client distribution that can further propel NEO's growth to benefit the Canadian marketplace. NEO's product alignment with existing Cboe business lines, including MATCHNow and Cboe BIDS Canada, will allow Cboe to leverage its scale, technology expertise and operational efficiency throughout the North American market. Bringing the MATCHNow and NEO businesses under the same corporate umbrella will help allow Cboe to bring increased competition to
Cboe also expects to expand its global listings strategy by leveraging the unique listings experience NEO has built with companies focused on the innovation economy globally. With access to global resources and platforms, this strengthened offering is expected to improve efficiencies and opportunities for investors and capital-raisers in
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
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
Fully operational since 2015, NEO Exchange is a
Cboe funded the transaction with existing credit facilities and cash on hand. Terms of the deal were not disclosed, however, the company noted that the purchase price is not material from a financial perspective and expects it to be nominally accretive in the next 12 months.
