- 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
CHICAGO, June 1, 2022
/CNW/ -- 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 Canada as a hub for global equities trading.
In addition to NEO, Cboe's Canadian operations include MATCHNow,
the alternative trading system (ATS) acquired by Cboe in 2020, and
Cboe BIDS Canada, a Canadian equities block trading venue launched
in February 2022. Cboe now holds
approximately 15.6% combined equities market share in Canada through the MATCHNow and NEO
venues.2
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 Canada through a
holistic equities offering with market data, access services and
listings.
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 Canada and
around the world.
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 Canada and across
the globe."
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 U.S., Canada, Europe and other global platforms. The NEO
team will be instrumental in helping to grow a global listings
offering, leveraging the strength of NEO's existing listings
business in Canada. We will
continue to put investors and capital-raisers first as we work with
Cboe to create an exceptional experience for companies seeking
access to liquidity and capital formation globally."
Fully operational since 2015, NEO Exchange is a Toronto-based Canadian stock exchange operator
with business lines across listings, trading and market data.
Senior Vice President, Global Listings and NEO President, Jos
Schmitt will remain as head of the NEO business, reporting to
David Howson, EVP, Global President
of Cboe. Schmitt will also lead Cboe's global listings strategy.
Bryan Blake, Vice President,
Canadian Equities, will provide strategic leadership and direction
to the transaction side of the NEO business, reporting to
Adam Inzirillo, Senior Vice
President, North American Equities.
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.
About Cboe Global Markets, Inc.
Cboe Global Markets (Cboe: CBOE), a leading provider of market
infrastructure and tradable products, delivers cutting-edge
trading, clearing and investment solutions to market participants
around the world. The company is committed to operating a trusted,
inclusive global marketplace, providing leading products,
technology and data solutions that enable participants to define a
sustainable financial future. Cboe provides trading solutions and
products in multiple asset classes, including equities, derivatives
and FX, across North America,
Europe and Asia Pacific. To learn more, visit
www.cboe.com.
About NEO
A Cboe Global Markets company, NEO is a bold and disruptive
capital markets fintech company designed for and led by the
industry. Our competitive drive, innovation, and advocacy help
enable change for the better. NEO consists of the NEO Exchange,
Canada's Tier 1 stock exchange for
the innovation economy that brings together investors and capital
raisers within a fair, efficient, and service-oriented environment;
and NEO Connect, a multi-asset distribution platform supporting
mutual funds, private funds, and private placements for
corporates.
CBOE-C
CBOE-OE
Cboe®, Cboe Global Markets®, Cboe Volatility Index®, and VIX®
are registered trademarks of Cboe Exchange, Inc. All other
trademarks and service marks are the property of their respective
owners.
Cboe Media
Contact
|
NEO Media
Contact
|
|
Cboe Analyst
Contact
|
Angela
Tu
|
Joanne
Kearney
|
|
Kenneth Hill,
CFA
|
|
+1-646-856-8734
|
+1-416-804-5949
|
|
+1-312-786-7559
|
|
atu@cboe.com
|
joanne.kearney@smithcom.ca
|
|
khill@cboe.com
|
|
Cautionary Statements Regarding
Forward-Looking Information
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that involve a number of risks and uncertainties. You can identify
these statements by forward-looking words such as "may," "might,"
"should," "expect," "plan," "anticipate," "believe," "estimate,"
"predict," "potential" or "continue," and the negative of these
terms and other comparable terminology. All statements that reflect
our expectations, assumptions or projections about the future other
than statements of historical fact are forward-looking statements.
These forward-looking statements, which are subject to known and
unknown risks, uncertainties and assumptions about us, may include
projections of our future financial performance based on our growth
strategies and anticipated trends in our business. These statements
are only predictions based on our current expectations and
projections about future events. There are important factors that
could cause our actual results, level of activity, performance or
achievements to differ materially from those expressed or implied
by the forward-looking statements.
We operate in a very competitive and rapidly changing
environment. New risks and uncertainties emerge from time to time,
and it is not possible to predict all risks and uncertainties, nor
can we assess the impact of all factors on our business or the
extent to which any factor, or combination of factors, may cause
actual results to differ materially from those contained in any
forward-looking statements.
Some factors that could cause actual results to differ include:
the loss of our right to exclusively list and trade certain index
options and futures products; economic, political and market
conditions; compliance with legal and regulatory obligations; price
competition and consolidation in our industry; decreases in trading
or clearing volumes, market data fees or a shift in the mix of
products traded on our exchanges; legislative or regulatory changes
or changes in tax regimes; our ability to protect our systems and
communication networks from security risks, cybersecurity risks,
insider threats and unauthorized disclosure of confidential
information; our ability to attract and retain skilled management
and other personnel; increasing competition by foreign and domestic
entities; our dependence on and exposure to risk from third
parties; fluctuations to currency exchange rates; factors that
impact the quality and integrity of our indices; the impact of the
novel coronavirus ("COVID-19") pandemic; our ability to operate our
business without violating the intellectual property rights of
others and the costs associated with protecting our intellectual
property rights; our ability to minimize the risks, including our
credit and default risks, associated with operating a European
clearinghouse; our ability to accommodate trading and clearing
volume and transaction traffic, including significant increases,
without failure or degradation of performance of our systems;
misconduct by those who use our markets or our products or for whom
we clear transactions; challenges to our use of open source
software code; our ability to meet our compliance obligations,
including managing potential conflicts between our regulatory
responsibilities and our for-profit status; our ability to maintain
BIDS Trading as an independently managed and operated trading
venue, separate from and not integrated with our registered
national securities exchanges; damage to our reputation; the
ability of our compliance and risk management methods to
effectively monitor and manage our risks; our ability to manage our
growth and strategic acquisitions or alliances effectively;
restrictions imposed by our debt obligations and our ability to
make payments on or refinance our debt obligations; our ability to
maintain an investment grade credit rating; impairment of our
goodwill, long-lived assets, investments or intangible assets; the
accuracy of our estimates and expectations; litigation risks and
other liabilities; and operating a digital asset business. More
detailed information about factors that may affect our actual
results to differ may be found in our filings with the SEC,
including in our Annual Report on Form 10-K for the year ended
December 31, 2021 and other filings
made from time to time with the SEC.
We do not undertake, and we expressly disclaim, any duty to
update any forward-looking statement whether as a result of new
information, future events or otherwise, except as required by law.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date
hereof.
1 Neo is the aggregate business name for
Aequitas Innovations, Neo Exchange and Neo
Connect
2 Source: Investment Industry
Regulatory Organization of Canada
(IIROC) reports of market share by marketplace by volume traded
between second-quarter 2021 and first-quarter 2022.
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SOURCE Cboe Global Markets, Inc.