NEO filed for chapter 11 bankruptcy in 2016
Cboe Global Markets Inc. has agreed to buy NEO Exchange Inc. for $1.17bn.
NEO filed for chapter 11 bankruptcy in June 2016 after its global trading platform, Beneta Europe, was suspended by FINRA pending an investigation into interconnections between NEO and another trading platform, Bridge Trading.
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Cboe will acquire NEO from its current owner — South African asset manager Discovery Capital Holdings Pty Ltd., holding company Investec Africa Inc. and the Rothschild Group Ltd. Cboe said the deal is expected to close during the fourth quarter of 2019.
NEO operates the Open Hand electronic derivative trading platform. It is also part of Dark Pool Hub, a European dark pool facility.
The deal could lead to a combined market maker-regulator: Cboe will have a seat on NEO’s board.
“NEO’s range of products and open architecture capabilities will continue to expand opportunities for Cboe’s existing customers, and allow us to capture the upside opportunities for new customers,” Cboe chief executive Edward Tilly said in a statement.
The two companies will continue to operate as independent brands, and are not merging.