Cboe Global Markets Now Holds 15.6% Of Canadian Equities Market After Closing NEO Exchange Acquisition

In one of the biggest movements in exchanges, Cboe Global Markets, Inc. (Cboe: CBOE) closed its previously announced acquisition of Aequitas Innovations, Inc., more commonly known as the NEO.

“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,” said Cboe Global Markets CEO Ed Tilly.

The US options exchange adds NEO to its portfolio of Canadian equity markets: alternative trading system MATCHNow acquired in 2020 and the newly-launched block trading venue Cboe BIDS Canada. Approximately, the firm now holds 15.6% of the combined equities market share in Canada. 

While the terms of the deal were not fully disclosed, the firm has relayed that the transaction will be funded with cash on hand. The purchase price is also not material from a financial perspective and is expected to be nominally accretive, according to the exchange.

NEO President Jos Schmitt is expected to still lead the exchange, reporting to Global President of Cboe, David Howson. Schmitt will also handle the strategy for global listings.

Information for this briefing was found via the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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