Intercontinental Exchange Inc has announced that it will buy the commissioner of brokerage and technology firm Trayport for $ 650 million in stock. The entity that owns the NYSE said on Monday that the deal would allow it to provide new services to the over-the-counter market energy market in Europe. This includes European electricity, natural gas and coal.
Intercontinental Exchange buys Trayport
Trayport is a subsidiary of the GFI Group and was acquired by BGC Partners in March of this year (2015). Today, Intercontinental Exchange agreed to buy the company. Trayport licenses its technology platform to help brokers execute electronic and hybrid transactions. The platform primarily serves the OTC utility markets in Europe.
The intercontinental exchange has noted that, as part of the business, Trayport will expand a greater range of insurance and analytical services as the over-the-counter markets develop. Trayport is based in London and will continue to provide its customers with its technology platform. These clients include brokers, energy producers and consumers, exchanges and clearing houses. Intercontinental Exchange plans to expand its services to emerging energy markets in Asia as well.
“European regulators have made it clear that they do not expect the OTC gas and electricity markets to be subject to the mandatory clearing arrangements that are applied to other commodity markets.” , said Jeffrey Sprecher, Managing Director of International Exchange. “As such, these vital markets will require continued investment as the European energy market evolves.”
Trayport will benefit greatly from ICE’s global technology infrastructure. ICE’s expertise in managing secure data should also serve the acquired business well.
“In addition, thanks to ICE’s experience in managing secure technology, we are well positioned to support the continued development of these systems, ”says Sprecher. “In line with our experience in improving markets, we will invest and improve the trayport offer according to the changing needs of consumers. “
The board of directors of these two companies would have been completely in agreement with the takeover. The deal is expected to be finalized in the first quarter of 2016. This will also depend on compliance with closing conditions and approval from industry regulators.
“We are delighted to take another step forward in the rapidly evolving European OTC landscape with the stability of ICE and its ability to invest in our growth,” said Elliot Piggot, CEO of Trayport. “Our customer-centric platform will continue to meet the needs of the utility market as it evolves. We look forward to completing the transaction and moving to our next stage of growth. “