CME mulls acquisition of NEX Group

NEX Group confirms rumours that it received a preliminary approach from CME Group regarding an acquisition.

FinTech powerhouse NEX Group has confirmed it received a preliminary approach by US futures exchange operator CME Group regarding a potential takeover.  

In a statement published this week, NEX underlined the confirmation is not an announcement of a firm intention from CME to make an offer.

“Discussions are at an early stage and there can be no certainty that an offer for NEX will be made, nor as to the terms of any offer, if made,” the statement said. “A further announcement will be made if appropriate. This announcement has been made with the consent of CME.”

Shares in NEX surged 32% in early trading this morning following the announcement.

NEX Group underwent a major rebrand in 2016 following Tullet Prebon’s acquisition of ICAP’s global hybrid voice broking business.

The new business outlined a focus on electronic markets and post-trade businesses amid increasing regulatory pressures and migration towards electronic trading.

NEX Group’s founder, CEO and industry heavyweight Michael Spencer, commented at the time the new business would benefit and would be well-placed amid increased demand by regulators for electronic trading and post-trade risk mitigation.

“NEX Group will be a fast moving, entrepreneurial pure electronic and post trade leader, well positioned for growth ,” he added. “We wanted a name to truly reflect this and which was truly global. NEX Group does this.”

It now consists of four business segments; NEX Markets, NEX Optimisation, NEX Opportunities and NEX Exchange.

NEX Group’s investment arm Euclid accelerated its activity throughout 2016, acquiring several FinTech companies working on technologies including blockchain, collateral management, cloud technology and a research unbundling platform.