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Cboe Looks To Give Issuers A Global Alternative To NYSE and Nasdaq

Contributing Author, Nathanael Sniateck, Summer Associate

In June 2023, Cboe Global Markets, Inc. (Cboe), a leading securities and derivatives exchange network that includes the Chicago Board Options Exchange, announced the launch of a new global listing exchange network for companies and exchange-traded funds (ETFs) that is designed to compete with the New York Stock Exchange (NYSE) and Nasdaq Stock Market (Nasdaq). The new Cboe exchange network includes exchanges in the U.S., Canada, the Netherlands and the United Kingdom, with Australia to follow. Expansion in these areas is planned to continue through 2024. According to Cboe, their new listing network is designed to allow Cboe U.S. and Canada exchange listed companies “seamless” cross-listings throughout the exchange network providing global liquidity and easier access to capital. Cboe is positioning the new exchange network as an alternative to NYSE and Nasdaq, and targeting “growth companies – particularly those with novel business models operating in nascent, high-growth industries.” 

Prior to establishing this exchange network, Cboe had footholds in several markets across the world, including the Asian Pacific and Europe, but each exchange operated separately. Their U.S. exchange is already the third largest equities exchange in the U.S. and the company has been operating exchanges for roughly 50 years, trading ETFs, options, futures and other securities. According to Cboe, their equities markets currently handle a combined $61.7 billion in average daily notational value.

Cboe’s listing requirements are generally consistent with those of the NYSE and Nasdaq with a few notable exceptions.  For example, Cboe requires lower net income ($1 million) versus NYSE ($10 million). For companies considering listing on a US securities exchange, there is now an additional exchange to consider as an alternative to the Nasdaq or NYSE.

If you have any questions about this new exchange or any other matter pertaining to securities or capital markets, please contact a member of Harter Secrest & Emery’s Securities and Capital Markets group for more information.

 

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