U.K. Competition Watchdog Says ICE Must Sell Trayport
October 17 2016 - 12:50PM
Dow Jones News
The U.K.'s antitrust watchdog ruled Monday that Intercontinental
Exchange Inc. must sell Trayport, a provider of energy-trading
technology, dealing a blow to the U.S. exchange operator's efforts
to deepen its presence in European markets.
ICE acquired Trayport in late 2015 for $650 million. The U.K.'s
Competition and Markets Authority, which had been reviewing the
deal since January, said that ICE's ownership of Trayport would
increase fees for traders and reduce the ability of rivals to
launch new products.
"We believe that the only effective way to preserve competition
is to require ICE to sell Trayport," Simon Polito, chair of the
CMA's inquiry, said in a statement.
A spokesman for ICE said in a statement that the company was
"disappointed" and was considering appealing the decision.
Trayport licenses its software for use by brokers. Its
technology underpins about 85% of European utilities trading,
according to the CMA.
ICE bought Trayport from brokerage BGC Partners in December,
saying it would use the deal to provide new services in
over-the-counter trading in European natural gas, power and
coal.
Write to Alexander Osipovich at alexander.osipovich@wsj.com
(END) Dow Jones Newswires
October 17, 2016 13:35 ET (17:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
BGC Partners (NASDAQ:BGCP)
Historical Stock Chart
From Apr 2024 to May 2024
BGC Partners (NASDAQ:BGCP)
Historical Stock Chart
From May 2023 to May 2024