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

Inside View

Industry Leaders Share Insights on Framing Crypto Payments into FX Brokerage Business

While the allure of crypto payments is strong, caution is essential. The potential benefits in terms of speed, lower fees, and blockchain efficiency need to be weighed against the risks associated with cryptocurrency volatility. 

Institutional FX

FXSpotStream volumes hit 14-month high in November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2023, which moved higher on a monthly basis.

Digital Assets

Circle denies ties with Palestinian groups, TRON founder

Stablecoin issuer Circle has denied allegations that it facilitates funding for terrorist organizations.

Retail FX

CySEC hits operator of Titanedge, TradeEU with €90,000 fine

The Cyprus Securities and Exchange Commission (CySEC) announced that it has imposed a fine of €90,000 on Titanedge Securities Ltd due to shortcomings in their regulatory obligations.

Institutional FX

Cboe FX volumes retreats slightly in November 2023

Cboe’s institutional spot FX platform today announced its trading volume for the month ending November 2023, which took a step back after a strong rebound in October.

Institutional FX

Alpha Group seals Cobase majority acquisition

Foreign exchange service provider Alpha Group International plc (AIM: ALPH) has finalized its acquisition of Financial Transaction Services, operating as Cobase.

Digital Assets

TMNG Tokens Successfully Listed on MEXC Crypto Exchange

TMN Global proudly announces the successful listing of its native TMNG token on the MEXC crypto exchange, effective December 1st, 2023. This strategic partnership marks a significant milestone for TMN Global in the crypto space.

Institutional FX

Marex completes acquisition of TD Cowen’s PB business

London-headquartered commodities broker Marex has completed the acquisition of TD Cowen’s prime brokerage and outsourced trading business, which will be integrated into Marex’s capital market division. This division was established following the acquisition of ED&F Man Capital Markets in 2022.

Digital Assets

Talos introduces decentralized liquidity and onchain settlement with Uniswap and Fireblocks

“At the cornerstone of the DeFi ecosystem, Uniswap has the breadth of assets and depth of liquidity that institutional traders need. And to have this partnership powered by Fireblocks, a digital assets infrastructure provider trusted by some of the most renowned institutions, is very fitting.”