NEX Group Confirms Report of CME Group’s Takeover Bid, Discussions at an Early Stage - The Industry Spread

Karthik Subramanian

Karthik Subramanian has been a professional trader and fund manager over the last 18 years. He is basically a software developer who made the transition to financial domain around 18 years back as the attractiveness of the financial markets proved too much for him. He lives in Chennai in India along with his wife and son. He began his career as a software developer in 1999 and then gradually moved into the financial industry as he began trading stocks in his pastime. He then moved into the financial markets full time and then shifted his focus to the FX markets due to the liquid nature of these markets. Since then, he has been trading FX diligently and his favourite pair are the EURUSD and EURJPY. Over the last couple of years, he has found blockchain to be of high interest and considering his background in software and finance, he has since assembled a team of highly talented developers who have since worked on a variety of projects like crypto exchanges and blockchain architecturing. Now, he balances his time between trading and commenting on both the FX and crypto markets. He has worked with many publications including FX Street and Finance Magnates, which has helped him gain experience and also recognition across the industry. He loves to write and this passion has helped him to reach out across the FX and crypto industry. Right now, he works on his pet projects in the FX and crypto industry and spends his time writing and managing his blockchain team and helping it to reach higher.

NEX Group Confirms Report of CME Group’s Takeover Bid, Discussions at an Early Stage

March 16, 2018

NEX GroupThe UK based financial technology company, NEX Group issued a press release late on Thursday confirming of receiving a preliminary bid by US rival, CME Group Inc, the operator of the Chicago Mercantile Exchange regarding a possible acquisition. 

The statements were issued by the group after Bloomberg News first reported about the developments adding that NEX Group can also attract bids from other rivals exchange operators. Clarifying the news, NEX Group said that the talks were still in initial stages and there is no certainty that the offer made will be accepted.

The press release reads: “Discussions are at an early ‎stage and there can be no certainty that an offer for NEX will be made, nor as to the terms ‎of any offer, if made.‎”

Following the outbreak of the news, the shares of the group went up by 2 percent in late Thursday trading. The NEX Group’s current share price is around £6.70 and has a total market capitalization of £2.55 billion or $3.5 billion. Formerly known as ICAP, it rebranded itself as NEX Group after TullettPrebon acquired its brokerage  ‎business for £1.3 billion ($1.6 billion) ‎in 2016. to entirely focus on electronic trading and financial technology.

cme groupAcquiring NEX will allow CME to strengthen its presence in the UK market and further expand its reach into the NEX’s cash market that supports some of its future contracts. If the deal is completed, then it would be one of the biggest exchange deals in recent years after Cboe’s holding $3.4 billion acquisition of Bats Global Markets Inc in 2017. NEX Group owns the biggest electronic trading platform for the US treasury bonds and CME dominates the interest-rate futures market. 

The Chicago-based CME Group is a $56 billion global-exchange operator that has grown by taking over rivals like Chicago Board of Trade and the New York Mercantile Exchange.

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