Articles tagged by NEX Group
The sale of ICAP’s globally hybrid voice broking and information business to Tullett Prebon, now named TP ICAP (TP Icap), which includes the associated technology and broking platforms and certain joint ventures and associates, has completed today. The remaining business, which includes EBS BrokerTec, as well as Traiana, will remain under the newly named NEX Group (Nex). The board of NEX also announces that the Share Consolidation will become effective with effect from Admission today, at which point the total issued ordinary share capital of NEX will be 379,735,432 ordinary shares of 17.5 pence each.
Following the release of the first set of volume data from three platforms at the start of the week, a new set from three providers reinforces the impression that December was a decent month for those responsible for providing trading venues.
The newly-branded Nex Group says average daily volume (ADV) on its EBS platform was $89.6 billion in December, while CME Group handled 892,000 FX contracts (around $92 billion) and FXSpotStream reported a daily average of $18.4 billion on a 21 trading day basis.
NEX Data (Nex Data), a NEX Group business that provides global pricing data and information solutions, and Tradition, one of the largest interdealer brokers in over-the-counter commodity and financial products, announce today that they have agreed a distribution partnership.
Nex Data will become a key distributor for Tradition’s market data and information services division, TraditionDATA. The agreement includes real-time and end-of-day prices sourced directly from Tradition’s global electronic, hybrid and voice broking operations in all asset classes to include: interest rate derivatives, money markets, energy and commodities and fixed income products. It also covers data from Trad-X, Tradition’s electronic trading platform for OTC derivatives, and Tradition Asia, the interdealer broker’s Japanese and pan-Asian division.
BrokerTec, Nex Group’s electronic fixed income trading platform, has agreed to acquire a controlling majority stake in e-Mid, the Italian electronic central limit order book (CLOB) for interbank deposits and Overnight Indexed Swaps (OIS).
The transaction is subject to certain conditions, including the approval of the Bank of Italy, the firm says that subject to receipt of this approval it expects the transaction to complete in the next few months.
Upon completion of the transaction, e-Mid will become a subsidiary of BrokerTec Europe Ltd.
Per Sjöberg, CEO of TriOptima, has decided to leave the business to pursue other ventures, according to Nex Group, which owns the business.
He will be replaced by Stuart Connolly, subject to approval by Sweden’s Financial Supervisory Authority. Connolly only recently joined Nex Optimisation, which is part of Nex Group, as head of client product development in November 2016.
The firm says that since joining, Connolly has been working on the development of inter-operable data services across all Nex Optimisation businesses.
Profit & Loss understands that Jill Sigelbaum, head of foreign exchange at Traiana, is leaving the firm.
Nex Group, of which Traiana is a part, declines to comment, however it is understood that Sigelbaum has decided to pursue other opportunities and will officially leave at the end of the first quarter of 2017.
Sigelbaum joined Traiana in November 2003 having earlier worked for Scrittura, Financial Software Systems and Fenics.
Sigelbaum was named vice chair of the Foreign Exchange Professionals Association (FXPA) in early 2016.
Nex Group has released its first quarterly results since the official formation of the group, and while it reports a good bounce in trading volumes around the US election in November, its CEO, Michael Spencer has flagged more “muted” volumes since.
Nex Group’s Q3 revenue was up 11% on the third quarter of 2015 and is 4% higher across the first three quarters of 2016 compared to the same period in 2015. Growth was evenly spread across the firm's Markets and trade lifecycle businesses.
Nex Group says that the United States District Court in the Southern District of New York has dismissed two entities which formed part of the Icap Group (Icap plc and Icap Europe Limited) from a class action case brought by various investors who alleged manipulation of the Euro Interbank Offered Rate, Euribor.
The liability for for the two entities resided with Nex Group under the terms of the recently completed transaction with Tullett Prebon that saw Icap’s voice and information services business merged with that firm.
NEX Optimisation, the NEX Group (Nex) company that helps clients simplify complexity and optimise their resources, has launched an end-to-end regulatory reporting platform ahead of new reporting requirements coming in under MiFID II.
Called Nex Regulatory Reporting, the new platform is being led by Collin Coleman and powered by Abide Financial, a Nex Group business. Abide is a reporting partner to more than 120 clients including banks, asset managers, hedge funds, brokers and trading firms and venues.
“Clients will benefit from seamless processing of large data volumes under multiple regulatory regimes and transparent delivery of final reports to regulators via a suite of in-house regulatory end points,” says Coleman. “We will also continue to deliver the high level of service which our clients recognise us for.”
BrokerTec, Nex Group’s electronic fixed income trading platform, has announced it has recieved Bank of Italy approval to complete the transaction to acquire a majority stake in e-Mid, the first Italian electronic central limit order book (CLOB) platform for interbank deposits and Overnight Indexed Swaps (OIS).
Nex says the transaction offers BrokerTec Europe a strong footprint in the important Italian debt and money markets.
As a subsidiary of BrokerTec Europe, e-Mid will offer its Italian government bond repo and interbank deposit businesses to BrokerTec’s client base while BrokerTec will integrate the e-Mid technology, provided by List, into its technology architecture.
Following the disposal of Icap Global Broking to Tullett Prebon, the re-branded Nex Group has reported an increase in revenue for the financial year 2017, which ended on March 31.
Nex says revenue from continuing operations was GBP 543 million in the year to March 2017, up from GBP 460 million for the year to March 2016, an 18% increase.
Trading operating profit was GBP 145 million (GBP 139 million in FY 2015-16), while trading profit before tax was GBP 114 million (110 million) and profit before tax was GBP 120 million (27 million).
NEX Optimisation will be launching its new NEX Infinity platform in July, when its clients will be able to start testing spot FX and cash equities in the Infinity distributed ledger.
In addition to its use of blockchain technology, the new architecture also utilises cloud hosting in a bid to simplify trade processing, improve clients’ control of their data and reduce costs. As a Software as a Service platform, Nex Infinity will also allow third-party technology providers to offer their services on the platform.
Samantha Wren, currently chief commercial officer for NEX Markets, has been appointed chief financial officer of Nex Group and will join the firm’s board effective immediately. Bridges has stepped down from the role he took up in September 2015 and will leave the firm later this year.
In a separate move, Ken Pigaga, global chief operating officer, has also joined the board of Nex as a director, with immediate effect. “This appointment reflects the recognition of the importance of Mr Pigaga’s role leading the Nex transformation programme and the increased focus by the group on technology and cyber security,” the firm states.
Douglas Nevistich has re-joined NEX (Nex) Group in New York.
He joins as a senior product manager after a brief stint at 360T, where he was also a senior product manager.
Prior to joining 360T in August 2016, Nevistich spent 16 years at Icap, which transitioned into Nex Group after it completed the sale of its voice broking business to Tullett Prebon in December 2016.
Nevistich was initially on the technology side of the business at Icap before moving on to product management, where he was the global API product manager and EBS market product manager for the Americas.
NEX Group has provided a trading update for investors, in which it has flagged increased spending at its Optimisation division under which umbrella the firm’s post-trade businesses operate, including TriOptima and Traiana.
The announcement, which is being read in some quarters as a profit warning, says Nex has chosen to increase its investment in the Optimisation business in the first six months to “ensure the business is best positioned to take advantage of the significant opportunities that it has identified”.
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.
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%.
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 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.
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’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%.
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 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.
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.