The head of the Cboe exchange resigns due to undisclosed relations with his colleagues

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

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

Tilley is a veteran of Cboe and its predecessor, the Chicago Board Options Exchange, where he started as a trading floor employee in 1987. Cboe operates the largest U.S. stock options venue, among other businesses.

He is the latest CEO to leave unexpectedly due to his personal connections. BP CEO Bernard Looney resigned last week over his failure 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.

Frederic Tomczyk, a member of the Cboe Board of Directors, will serve as CEO. Tomczyk joined Cboe’s board in 2019, after serving as CEO of TD Ameritrade for eight years until 2016. Cboe shares rose 3.3 percent early Tuesday.

“Fred’s knowledge of the Cboe 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 member of the Cboe Board of Directors who was recently appointed as Non-Executive Chairman.

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

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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 into US and European cash stocks, as well as exchange-traded funds and currencies.

In a filing, Cboe said that under his contract, Tilly will retain stock options, including performance-related options, pro rata until the date of his departure.

This is a developing story. Updates to follow.

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