Cboe Acquires Canadian Stock Exchange NEO

The deal is expected to close in the first half of 2022.

Cboe Global Markets (Cboe: CBOE) has expanded its presence in the Canadian financial markets with the latest acquisition of the stock exchange operator, Aequitas Innovations (NEO). However, the amount involved in the deal was not disclosed.

“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 the Asia Pacific, bringing us one step closer to our vision of building one of the world’s largest global derivatives and securities trading networks,” said Ed Tilly, the Chairman, President and CEO of Cboe.

Based in Toronto, NEO has been operating since 2015. It offers a diverse set of products in the Canadian markets that range from corporate listings to cash equity trading. Additionally, it offers listing and data services and even provides a distribution platform supporting mutual funds, private funds and private corporates through a sister company, NEO Connect.

The services of NEO will complement another of Cboe’s Canadian subsidiaries, the alternative trading system (ATS) MATCHNow, which was acquired in 2020.

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“With MATCHNow and NEO, Cboe can achieve scale in Canada, creating efficiencies for our combined customers with familiar technology and consistent market models,” Tilly added.

Targeted Acquisitions

The acquisition came when trading levels across the markets are soaring high and will help Cboe to strengthen its presence in the region. Last month, Cboe agreed to acquire the cryptocurrency trading platform, Eris Digital Holdings (ErisX), a spot and derivatives exchange for digital assets.

The American derivatives exchange operator even became a limited partner in the acquisition of Chicago-based Trading Technologies and is going to launch a US Treasuries trading platform.

“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,” Jos Schmitt, President and CEO of NEO, said.

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