CME Group has appointed new heads to the EBS, BrokerTec and Optimisation business lines as part of its ongoing integration with NEX Group, which the exchange acquired last year. Jeff Ward has been named global head of EBS, having formerly served as global head of NDFs and forwards and head of EBS Asia, based in […]
Tag: NEX Group
The boards of CME Group and NEX Group have announced they have received clearance under the Hart-Scott-Rodino Act from the United States Department of Justice – Antitrust Division for the proposed acquisition of NEX by CME and Bidco – an important step in the process to complete the acquisition..
CME and NEX have also received the relevant regulatory approvals from the UK’s Financial Conduct Authority (FCA) and regulators in the US, Germany, Italy and Sweden, and have made the requisite pre-notifications in Hong Kong.
NEX Optimisation and Capitolis have entered into a partnership to provide immediate access to Capitolis’ FX novation service through the NEX Infinity platform.
Launched in 2018, Capitolis has created a platform for end-to-end FX novation processing to try and bring greater standardisation, automation and transparency to the buy and sell sides.
Complying with the ISDA Novations Protocol, ‘Capitolis Novation’ automates the currently manual workflow in both FX prime broking and bilateral trading. The service addresses operational, audit, cost, speed and scale inefficiencies resulting from the manual process.
Intercapital Capital Markets (Intercapital), a NEX Group subsidiary formerly known as ICAP Capital Markets (ICAP), has agreed a $50 million settlement with the US Commodity Futures Trading Commission (CFTC) in relation to allegations that some of its brokers aided and abetted attempts by several of its bank clients to manipulate the ISDAFIX benchmark.
A CFTC order issued today finds that over more than five years, beginning in at least January 2007 and continuing through December 2012, ICAP’s swaps brokers were regularly enlisted by traders at bank clients to assist in attempting to manipulate the US dollar International Swaps and Derivatives Association Fix (USD ISDAFIX) for the benefit of their bank clients’ derivatives positions, including positions involving cash-settled options on interest rate swaps.
NEX Group’s full year results for year ending March 31 indicate healthy growth at the firm as it continues to close in on a sale to CME Group which was last week approved by NEX shareholders.
For the year ended 31 March 2018, the group reported revenue of £591 million, an increase of 9% on the prior year both on a reported and on a constant currency basis. On a constant currency basis, revenue from NEX Markets was up 6% and from NEX Optimisation up 7%.
CME Group has bucked the trend amongst FX platforms reporting a month-on-month decline in activity with a 3% increase in FX ADV. Elsewhere, NEX Group, which is subject to a bid from CME, reports NEX Markets handled $92.7 billion in March, a 14.4% drop month-on-month, but a 7.2% rise from `March 2017. It was a slightly more positive picture at Thomson Reuters, which reports spot ADV of $105 billion, down 7% from February but up 11% year-on-year – the firm also says non-spot activity increased 1.7% from February.
NEX Group has issued a statement confirming that it has received a preliminary approach from CME Group to acquire the company.
The firm says discussions are at an early stage and there can be no certainty that an offer will be made, or one is, its terms.
This publication has previously predicted such a move, however, sources familiar with the matter say this may not be the end of the story and that a competing bid could emerge for NEX, which is valued at around £2.5 billion.
Three more trading venues have reported slightly increased FX average daily volume (ADV) for November. Spot FX ADV on NEX Markets (Nex) last month was $82.3 billion, while CME Group reported ADV of 915,000 contracts, which Profit & Loss estimates to be in the region of $90.5 billion in notional value (of which roughly 10% is in FX options products). Elsewhere, FXSpotStream reports ADV of $22.1 billion. All three platforms are up month-on-month but down year-on-year – in the case of FXSpotStream only slightly so.
NEX Group has unveiled increased revenues for the six months to September 2017, however operating profit has dipped. Nex Markets performed well, however, and contributed to the increased revenues.
Nex says that revenue was £287 million, up from £254 million in the same period last year, a 13% increase that is trimmed to 7% on a constant currency basis. Meanwhile, trading operating profit fell from £75 million to £63 million and its trading operating profit margin fell from 30% to 22%.
Just weeks after announcing it was allocated additional funding to its post-trade business, NEX Optimisation, NEX Group has announced that its CEO, Jenny Knott, has decided to step down from the role.
At the start of October Nex provided a trading update in which it revealed it would be spending more on building out the Optimisation business, a move that was interpreted in some quarters as a profit warning. Today the firm has announced Knott’s departure and appointed Ken Pigaga as CEO of Nex Optimisation.