Boss of Cboe exchange resigns over undisclosed relationships with colleagues

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The chief executive of Cboe Global Markets, the Chicago-based exchange operator, has resigned suddenly after the company said he failed to disclose personal relationships with colleagues.

Edward Tilly “did not disclose personal relationships with colleagues, which violated Cboe’s policies and stands in stark contrast to the company’s values”, Cboe said in a statement on Tuesday.

Tilly is a veteran of Cboe and its predecessor, the Chicago Board Options Exchange, having started as a clerk on its trading floor in 1987. Cboe operates the largest venue for US equity options, among other businesses.

He is the latest chief executive to unexpectedly depart over his personal relationships. Last week BP CEO Bernard Looney resigned over his own failure to disclose the extent of past personal relationships inside the company.

Cboe said Tilly departed after an investigation by Cboe’s board and external lawyers that began last month.

Fredric Tomczyk, a Cboe board member, will take over as chief executive. Tomczyk joined Cboe’s board in 2019, having been chief executive of broker TD Ameritrade for eight years until 2016. Cboe shares were up 3.3 per cent early on Tuesday.

“Fred’s familiarity with Cboe’s business, combined with his multi-decade experience in the financial services industry, will provide stability and reinforce the company’s commitment to growth,” said William Farrow, a Cboe board member newly appointed as non-executive chair.

Tilly had led Cboe since 2013, having held senior management positions since 2006 when he moved from the trading floor.

He became chair in 2017 after leading Cboe’s $3bn acquisition of the Bats trading platform, — a move that expanded its reach from listed derivatives into US and European cash equities as well as exchange traded funds and currencies.

In a filing, Cboe said that under his contract Tilly would retain stock options, including performance-related ones, prorated up to his departure date.

This is a developing story. Updates to follow.