NEO Exchange is a Canadian stock exchange based in Toronto. Marketed as Canada's New Stock Exchange, NEO aims to help companies, dealers and investors by creating a better listing experience, eliminating predatory market behaviours such as high-frequency trading, implementing a unique market making program to ensure liquidity, and offering free real-time market data for all NEO-listed securities.
The exchange is owned by Aequitas Innovations, a company backed by a number of Canadian and international corporations including Mackenzie Investments, OMERS Capital Markets, Barclays Corp. Ltd., and Royal Bank of Canada.
Video NEO Exchange
History
NEO Exchange received a recognition order from the Ontario Securities Commission on November 17, 2015 and commenced trading of 45 Toronto Stock Exchange-listed securities on March 27, 2015. On the first day, about 6.1 million securities worth approximately $106.3 million were traded on the exchange.
In January 2016, NEO secured its first listing: the Invesco PowerShares DWA Global Momentum Index ETF, which began trading on March 31, 2016. In September 2016, BlackRock Asset Management Canada Ltd. announced their intention to change the listing venue of five iShares exchange-traded funds, consisting of 12 listings in total, from the Toronto Stock Exchange to NEO. The transition of all 12 listings was completed on February 22, 2017.
In early 2017, Redwood Asset Management and BMO Asset Management separately announced plans to list exchange-traded funds on NEO for the first time, while Invesco Canada applied to list two additional PowerShares listings on NEO. On April 20, 2017, Mackenzie Financial announced the imminent launch of a new Global High Yield Fixed Income ETF, becoming the fifth issuer to list on the NEO Exchange.
Maps NEO Exchange
Consolidated market data
NEO has consistently advocated for enhanced access to consolidated market data for Canadian investors, claiming retail investors and the majority of investment advisors have access only to a partial view of market as less than 35% of ETF trading activity and less than 60% of overall trading activity in TSX and TSXV-listed securities is reflected in TSX and TSXV data.
In December 2015, NEO filed a complaint with the Competition Bureau alleging the TMX Group was "using its dominant market position to maintain control over the pricing of market data in the Canadian capital markets." On November 21, 2016 the Competition Bureau concluded their investigation after determining the TMX Group's refusal to share the requested market data was likely not a violation of competition rules.
In response to the Competition Bureau's decision to close their investigation, NEO called on the Canadian Securities Administrators to "mandate access to consolidated market data for all investors, including retail investors and their investment advisors."
NEO Connect
NEO Connect is an investment platform offered by NEO, allowing some investment products not listed on an exchange be purchased and redeemed by Canadian investment advisors in a similar fashion to publicly traded securities and exchange traded funds. The platform streamlines the purchase and redemption process for prospectus mutual funds and offering memorandum funds, making it easier and more cost-effective for investors and advisors to access investment products.
Listings
References
See also
- List of stock exchanges in the Americas
External links
- Official site
Source of article : Wikipedia
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