01—Abstract
Summary
Summary of the 8-K filed August 2, 2018. Cited figures are marked; the original filing is the authoritative source.
Cboe Global Markets, Inc. (CBOE) has announced a significant strategic move to consolidate its common stock listing exclusively onto its own Cboe BZX Exchange, Inc. (Cboe) platform.
Effective September 17, 2018, the company's shares will delist from the Nasdaq Global Select Market, ending the dual-listing arrangement. This move is expected to streamline trading, enhance visibility on Cboe's own exchange, and potentially reduce costs associated with maintaining multiple listings.
In addition to the listing change, the company also updated its Executive Severance Plan. Key amendments include the addition of three new executive participants (John Deters, Andrew Lowenthal, and Patrick Sexton), revised definitions for "Cause" and "Good Reason" to broaden protections for the company and executives, and a change in the pro-rated bonus calculation to be based on target performance rather than actual achievement, which could potentially increase severance payouts in certain scenarios.
02—Key points
Key Highlights
- Cboe Global Markets (CBOE) will voluntarily delist its common stock from the Nasdaq Global Select Market, effective September 14, 2018.
- The company's common stock will exclusively trade on its own Cboe BZX Exchange, Inc. starting September 17, 2018.
- The stock will continue to trade under the ticker symbol 'CBOE'.
- The move aims to simplify listing arrangements and enhance Cboe's proprietary exchange.
- The Executive Severance Plan has been amended and restated.
- Three new executives, John Deters, Andrew Lowenthal, and Patrick Sexton, have been added as participants to the Severance Plan.
- Key definitions within the Severance Plan ('Cause' and 'Good Reason') have been updated, and the pro-rated bonus calculation for qualifying terminations now uses target performance levels.
03—Questions
Frequently Asked Questions
Why is Cboe Global Markets delisting from Nasdaq and moving to its own exchange?
Cboe Global Markets is consolidating its listing exclusively onto its own Cboe BZX Exchange, Inc. to streamline operations, enhance its proprietary exchange's profile, and potentially reduce costs associated with dual-listing.
When will the stock stop trading on Nasdaq and start trading exclusively on Cboe?
Trading of Cboe's common stock on Nasdaq is expected to cease at market close on September 14, 2018. Trading on the Cboe BZX Exchange is expected to commence at market open on September 17, 2018.
Will the stock ticker symbol change?
No, the common stock has been approved for exclusive listing on Cboe and will continue to trade under the symbol 'CBOE'.
What are the significant changes to the Executive Severance Plan?
The key changes include adding three new executive participants, updating definitions for 'Cause' and 'Good Reason' for terminations, and altering the pro-rated bonus calculation for qualifying terminations to be based on target performance instead of actual company performance.
04—Continue