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CME Group to buy UK financial technology firm NEX Group for £3.9bn

BBR Staff Writer Published 29 March 2018

CME Group has signed an agreement to acquire UK financial technology firm NEX Group for around £3.9bn.

Under the deal, CME will acquire NEX common stock by paying £10 per share, which includes 500pence in cash and 0.0444 CME’s shares.

Based in London, NEX offers platforms, services, tools and expertise to help clients execute and optimize resources across the transaction lifecycle.

The firm’s lifecycle management and information services will allow customers to optimize portfolios, control risk and reduce costs.

NEX offers optimization services such as trade and portfolio management, regulatory reporting financial resource optimization, analytics and data insights.

NEX Markets include central limit order books, relationship-based platforms and execution management system, as well as cash and FX liquidity management center.

NEX Exchange provides access to a range of companies, and allows to work with its community of issuers, investors, advisers and brokers to provide a platform for public accessible equity and bonds

NEX's electronic FX and fixed income cash execution platforms will enable CME to improve its trading technology and streamline access by reducing the number of touchpoints, which clienst required to trade across products.

NEX's OTC post-trade products and services also complement CME Group's derivatives clearing services. 

Subject to regulatory approvals, the deal is expected to complete in the second half of this year.

Once the deal concludes, NEX CEO Michael Spencer will join the CME Group to help expand the business.

NEX's electronic FX and fixed income cash execution platforms will enable CME to improve its trading technology and streamline access by reducing the number of touchpoints, which clienst required to trade across products.

NEX's OTC post-trade products and services also complement CME Group's derivatives clearing services. 

CME Group chairman and CEO Terry Duffy said: "As one organization, we will be able to employ the complementary strengths of each company to serve a wider client base while diversifying our combined businesses across futures, cash and OTC products and post-trade services.

“Building on NEX's deep roots in Europe and Asia and CME's strong technology platform, we will transform our international profile and broaden our distribution network in spot and futures FX products as well as cash, repo and futures products in U.S. Treasuries.”


Image: CME Group to acquire UK financial technology firm NEX Group. Photo: courtesy of mapichai / FreeDigitalPhotos.net.