UK competition regulator makes concessions to ICE/Trayport deal concerning MiFID II

Maria Nikolova

In a Derogation to an Order issued early this year, the CMA says the Parties are permitted to conduct development discussions regarding establishing STP Link connectivity to ICE.

There has been some development concerning the deal between Trayport and Intercontinental Exchange Inc (NYSE:ICE), as the UK Competition and Markets Authority (CMA), which axed the deal in the fall of 2016, has issued a Derogation to its Final Order.

In the document, the UK regulator announces some concessions, which are made in response to MiFID II.

The CMA consents to a derogation from paragraphs 3.1.1 and 3.2.8 of the Order limited to the purpose of allowing Trayport to carry out actions which are necessary to ensure its customers will be MiFID II compliant, as of January 2018.

In the Order, the paragraphs in question state that:

  • 3.2.8 “There is no integration of the information technology of the Trayport and Intercontinental Exchange Businesses, and the software and hardware platforms of the Trayport Business shall remain essentially unchanged, except for routine changes and maintenance.”
  • 3.1.1 “ICE and Trayport Holdings Limited shall not, from the Commencement Date until Effective Divestiture, take any action which might lead to the integration of the Trayport Business with the Intercontinental Exchange Business.”

Under the Derogation to the Order, the Parties are permitted to:

a) conduct development discussions regarding establishing STP Link connectivity to ICE;

b) carry out technical work required to develop the STP Link;

c) enter into discussions regarding the terms of an agreement for the implementation of an STP Link provided that the final terms of the agreement are submitted to the CMA for approval.

The document marks the first concessions made by the CMA with regards to the deal between ICE and Trayport. The regulator has repeatedly insisted that ICE should sell Trayport. In March this year, the Competition Appeal Tribunal (CAT) agreed with the CMA on ICE having to divest Trayport. However, CAT also issued a judgment remitting consideration of the New Agreement to the CMA. According to the latest update to the case timetable, the target date for CMA’s final decision on the remitted issue is in early July this year.

Read this next

Retail FX

Malaysia regulator exposes OctaFX clone, shady FB profiles

Malaysia’s financial regulator today warned online investors about the risks of following investment tips made on social-media platforms.

Digital Assets

Crypto trading volume spikes at Swiss bourse amid FTX collapse

The shockwaves from the historic collapse of Sam Bankman-Fried’s crypto empire are still being felt across the industry, but some trading venues are actually doing better because of it.

Executive Moves

CMC Markets adds Camilla Boldracchi to institutional sales

UK’s biggest spread better, CMC Markets has promoted Camilla Boldracchi to take on an expanded role within its institutional sales desk.

Institutional FX

FXSpotStream reports $1.48 trillion in monthly volume for November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2022, which moved higher on a yearly basis but reflected weak performance across executed trade volumes when weighed against the figures of the prior month.

Retail FX

Interactive Brokers’ client activity drops 30% YoY

Interactive Brokers LLC (NASDAQ:IBKR) saw 1.95 million daily average revenue trades, or DARTS, in November 2022 compared to 1.96 million transactions in the prior month.

Digital Assets

The rise of Crypto ETPs in traditional exchanges as crypto winter deepens

Institutional investors are increasingly looking at traditional regulated exchanges as their first route into digital assets amid market turmoil caused by the crypto winter and the collapse of several big names within the space, including FTX. Acuiti and Eurex surveyed 191 buy and sell-side firms on their views of the digital assets markets in order […]

Digital Assets

TP ICAP’s crypto arm receives FCA’s go-ahead

UK interdealer broker TP ICAP has received a regulatory go-ahead to launch its cryptocurrency services in the UK. The bid shows that the recent collapse of FTX exchange has done little to damp the interest of big names in running their own crypto business.

Industry News

Coin Signals founder to pay $2,847,743 after prison sentence over crypto Ponzi scam

The U. S. District Court for the Southern District of New York has ordered Jeremy Spence, founder of Coin Signals, to pay $2,847,743 in restitution to victims of a fraudulent virtual currency scheme.

Digital Assets

CME Group goes DeFi: Reference rates and real-time indices of Aave, Curve, Synthetix

“These rates are designed to provide traders, institutions and other users transparency and price discovery across a much broader range of tokens, allowing them to confidently and more accurately value cryptocurrency sector specific portfolios and manage price risk around various blockchain-based projects.”

<