UK competition regulator sticks to decision on ICE/Trayport new agreement

Maria Nikolova

In the face of the remittal of the decision in March, the CMA still thinks that it is necessary to terminate the new ICE/Trayport agreement.

The regulatory hardships accompanying the deal between Trayport and Intercontinental Exchange Inc (NYSE:ICE) continue, as the UK Competition and Markets Authority (CMA) has stuck to its stance against the new agreement that was set to boost the commercial partnership between the two businesses after the acquisition of Trayport by ICE was axed by regulators in the fall of 2016.

As FinanceFeeds reported in March this year, the UK Competition Appeal Tribunal (CAT) agreed with the CMA that ICE should sell Trayport but disagreed with the CMA Report regarding the new agreement and returned the decision to the CMA for review. The UK CAT argued back then that the CMA Report “provided no articulation as to why the requirement to unwind the New Agreement would help ensure the effectiveness of the divestiture remedy”. It also stated that “the reasons for the CMA’s decision in this respect were too cursory and too conclusory to meet the standards of intelligibility and adequacy.”

Today, the CMA reiterated its stance with regards to the new ICE/Trayport agreement.

The competition regulator published its provisional remittal decision, which states that the new agreement represents a substantial step-change in the relations between the two companies which had historically not co-operated. The CMA also claims the agreement could risk an effective sale of the Trayport business and benefit ICE in the future while putting the new owner of Trayport at disadvantage.

Hence, the CMA has provisionally concluded that it is necessary to terminate the new agreement.

The publication of CMA’s final decision is due in late May. Before that, the regulator accepts comments to its provisional findings. Those willing to respond should do so in writing, no later than May 10, 2017.

The review process following the remittal has attracted nine submissions, including ones from ICAP and RWE Supply & Trading. There is no consensus in the comments as to whether the agreement should be allowed to proceed.

Read this next

Institutional FX

Euronext reports double-digit growth in FX volume

Pan-European exchange, Euronext has reported a 10 percent rebound in the average daily volume on its spot foreign exchange market. The ADV figure stood at $19.6 billion in January 2022, which is up from December’s $18 billion.

Digital Assets

Voyager subpoenas FTX’s inner circle over Alameda loan

Bankrupt crypto broker Voyager Digital, represented by law firm Kirkland & Ellis, is seeking court approval to subpoena Sam Bankman-Fried’s inner circle, as well as Alameda Research’s former executives.

Retail FX

AvaTrade seals sponsorship deal with F1’s Aston Martin team

Dublin-based forex broker AvaTrade today announced that it has concluded a sponsorship deal with Formula One’s Aston Martin Cognizant team that entails sponsorship rights and other marketing benefits.

Executive Moves

M4Markets onboards Invaxa CEO Marios Antoniou as COO

Seychelles-regulated brokerage firm M4Markets has appointed Marios Antoniou, who has a colorful career within the foreign exchange industry, in the capacity of its Chief Operations Officer.

Digital Assets

GK8 now allows clients to control their digital assets as they would their fiat

“As the institutional market is increasingly turning to self custody, our policy engine empowers them to automate transactions, approvals, and even crucial workflows, while providing the highest degree of security, consistency, governance and control.”

Digital Assets

Retail CBDCs in the UK: “Welcomed” by CryptoUK and R3, but “Dystopian” for ETC Group

“At this stage, we judge it likely that the digital pound will be needed in the future. It is too early to decide whether to introduce the digital pound, but we are convinced preparatory work is justified”, said the BoE and HM Treasury.

Institutional FX

Centroid taps Iress API to provide retail brokers with real-time market data

“It has always been a challenge to have an efficient, elegant solution for market data and order execution for retail brokers, but with Iress we have found absolutely the right partner to add to our client offering.”

Digital Assets

Ramp launches FCA-approved off-ramp product, onboards Brave, Trust Wallet, Ledger

“To obtain and maintain our FCA registration, we must meet and operate within their strict anti-money laundering and counter-terrorist financing standards. This is a huge achievement for us, as compliance is a cornerstone of our business and what we stand for.”

Institutional FX

State Street launches FIX API for Fund Connect ETF platform

“Expanding from proprietary APIs to the FIX industry standard will bring us closer to our goal of 100% digital interactions. This is another example of innovations we’ve brought to our operating model as we celebrate 30 years of servicing ETFs since the launch of SPY.”

<