NEO Exchange
 | |
| Type | Stock exchange |
|---|---|
| Location | Toronto, Ontario, Canada |
| Coordinates | 43°38′54.5″N 79°23′06.2″W / 43.648472°N 79.385056°W |
| Founded | March 27, 2015 |
| Owner | Aequitas Innovations |
| Currency | CAD |
| Website | www.aequitasneo.com |
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.[1]
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.[2]
History
NEO Exchange received a recognition order from the Ontario Securities Commission on November 17, 2015[3] 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.[4]
In January 2016, NEO secured its first listing: the Invesco PowerShares DWA Global Momentum Index ETF, which began trading on March 31, 2016.[5][6] 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.[7][8]
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.[9][10][11] 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.[12]
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.[13]
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.”[14] 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.[15]
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.”[16]
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.[17] The platform streamlines the purchase and redemption process for prospectus mutual funds and offering memorandum funds[18], making it easier and more cost-effective for investors and advisors to access investment products.
Listings
| Symbol | Listing | Launch Date |
|---|---|---|
| DWG | PowerShares DWA Global Momentum Index ETF | March 22, 2016 |
| DWG.U | PowerShares DWA Global Momentum Index ETF | January 31, 2017 |
| DWG.F | PowerShares DWA Global Momentum Index ETF | January 31, 2017 |
| CRQ | iShares Canadian Fundamental Index ETF | February 22, 2017 |
| CRQ.A | iShares Canadian Fundamental Index ETF | February 22, 2017 |
| CWO | iShares Emerging Markets Fundamental Index ETF | February 22, 2017 |
| CWO.A | iShares Emerging Markets Fundamental Index ETF | February 22, 2017 |
| CIE | iShares International Fundamental Index ETF | February 22, 2017 |
| CIE.A | iShares International Fundamental Index ETF | February 22, 2017 |
| CJP | iShares Japan Fundamental Index ETF (CAD-Hedged) | February 22, 2017 |
| CJP.A | iShares Japan Fundamental Index ETF (CAD-Hedged) | February 22, 2017 |
| CLU | iShares US Fundamental Index ETF | February 22, 2017 |
| CLU.A | iShares US Fundamental Index ETF | February 22, 2017 |
| CLU.B | iShares US Fundamental Index ETF | February 22, 2017 |
| CLU.C | iShares US Fundamental Index ETF | February 22, 2017 |
| ZTL | BMO Long-Term US Treasury Bond Index ETF | February 28, 2017 |
| ZTL.U | BMO Long-Term US Treasury Bond Index ETF | February 28, 2017 |
| ZTM | BMO Mid-Term US Treasury Bond Index ETF | February 28, 2017 |
| ZTM.U | BMO Mid-Term US Treasury Bond Index ETF | February 28, 2017 |
| ZTS | BMO Short-Term US Treasury Bond Index ETF | February 28, 2017 |
| ZTS.U | BMO Short-Term US Treasury Bond Index ETF | February 28, 2017 |
| UHD | PowerShares S&P 500 High Dividend Low Volatility Index ETF | March 7, 2017 |
| UHD.U | PowerShares S&P 500 High Dividend Low Volatility Index ETF | March 7, 2017 |
| UHD.F | PowerShares S&P 500 High Dividend Low Volatility Index ETF | March 7, 2017 |
| GHD | PowerShares S&P Global ex. Canada High Dividend Low Volatility Index ETF | March 7, 2017 |
| GHD.F | PowerShares S&P Global ex. Canada High Dividend Low Volatility Index ETF | March 7, 2017 |
| RPS | Redwood Floating Rate Preferred Fund | March 15, 2017 |
| RPU | Redwood U.S. Preferred Share Fund | March 15, 2017 |
| RPU.B | Redwood U.S. Preferred Share Fund | March 15, 2017 |
| MHYB | Mackenzie Global High Yield Fixed Income ETF | April 26, 2017 |
| RDE | Redwood Core Income Equity Fund | May 24, 2017 |
| RTA | Redwood Tactical Asset Allocation Fund | May 24, 2017 |
| RPU.U | Redwood U.S. Preferred Share Fund - Non-Currency Hedged | July 31, 2017 |
| REM | Redwood Emerging Markets Dividend Fund | August 23, 2017 |
| PIB | PowerShares 1-10 Year Laddered Investment Grade Corporate Bond Index ETF | September 12, 2017 |
| RCSB | RBC Canadian Short Term Bond Index ETF | September 21, 2017 |
| RCUB | RBC Canadian Bond Index ETF | September 21, 2017 |
| RGGB | RBC Global Government Bond (CAD Hedged) Index ETF | September 21, 2017 |
| RCAN | RBC Canadian Equity Index ETF | September 21, 2017 |
| RUSA | RBC U.S. Equity Index ETF | September 21, 2017 |
| RINT | RBC International Equity Index ETF | September 21, 2017 |
| REEM | RBC Emerging Markets Equity Index ETF | September 21, 2017 |
| QCH | Mackenzie China A-Shares CSI 300 Index ETF | February 1, 2018 |
References
- ↑ New Aequitas Neo stock exchange launches in Toronto pitching 'fairness' in markets, CBC News, 27-March-2015
- ↑ Aequitas, New RBC-Led Stock Exchange, To Rival TSX, Huffington Post, 25-August-2013
- ↑ New Aequitas stock exchange gets green light from OSC, CBC News, 17-November-2014
- ↑ Trading begins on Aequitas NEO Exchange, TheStar.com, 27-March-2015
- ↑ Upstart stock exchange Aequitas NEO snags first listing: a new PowerShares ETF, Financial Post, 28-January-2016
- ↑ PowerShares Canada launches global momentum ETF, Canada Newswire, 31-March-2016
- ↑ Startup exchange Neo poaches a dozen listings from TSX, The Globe and Mail, 13-September-2016
- ↑ ISHARES RAFI ETFS MIGRATING TO NEO EXCHANGE TODAY/TOMORROW ETF Insight, 21-February-2017
- ↑ REDWOOD ASSET MANAGEMENT TO LAUNCH ETFS ON NEO Advisor.ca, 12-January-2017
- ↑ BMO to List New ETFs on NEO Marketsmedia.com, 07-February-2017
- ↑ INVESCO TO LAUNCH ETFS ON NEO IN 2017 Advisor.ca, 18-January-2017
- ↑ Mackenzie to introduce new ETF on NEO exchange Investment Executive, 20-April-2017
- ↑ A Regulatory Solution to Canada’s Market Data Problem BusinessWire, 21-November-2016
- ↑ Aequitas files complaint about TMX Group to Competition Bureau over data pricing Canadian Business 08-December-2015
- ↑ Canada competition watchdog finds TMX Group did not violate competition rules Reuters, 21-November-2016
- ↑ Aequitas urges mandatory access to market data Wealth Professional, 28-November-2016
- ↑ Canada's Aequitas unveils plan to launch new fund trading platform Reuters, 12-November-2015
- ↑ NEO announces platform support for OM funds Wealth Professional, 16-March-2017