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The chief executive of Cboe Global Markets, the Chicago-based exchange operator, suddenly resigned after the company said he had failed to disclose his personal relationships with colleagues.
Edward Tilly “failed to disclose personal relationships with colleagues, which violated Cboe policies and was in stark contrast to the company’s values,” Cboe said in a statement Tuesday.
Tilly is a veteran of Cboe and its predecessor, the Chicago Board Options Exchange, and started as an employee on its trading floor in 1987. Cboe operates the largest venue for stock options in the U.S., among other businesses. .
He is the latest CEO to leave unexpectedly because of personal relationships. Last week, BP CEO Bernard Looney resigned for failing to disclose the extent of past personal relationships within the company.
Cboe said Tilly left after an investigation by Cboe’s board of directors and outside lawyers that began last month.
Cboe board member Fredric Tomczyk will take over as CEO. Tomczyk joined Cboe’s board of directors in 2019, after serving as CEO of brokerage TD Ameritrade for eight years until 2016. Cboe shares were up 3.3 percent early Tuesday.
“Fred’s familiarity with Cboe’s business, combined with his decades-long experience in the financial services industry, will provide stability and reinforce the company’s commitment to growth,” said William Farrow, Cboe Board Member. recently appointed non-executive chairman.
Tilly had led Cboe since 2013 and had held senior management positions since 2006, when she left the trading floor.
He became chairman in 2017 after leading Cboe’s $3 billion acquisition of trading platform Bats, a move that expanded its reach from listed derivatives to U.S. and European cash equities. as well as exchange-traded funds and currencies.
In a filing, Cboe said that under her contract, Tilly would retain stock options, including performance-related ones, prorated until her exit date.
This is a developing story. Updates to follow.
