The founder of electronic trading software firm Nex Group, Michael Spencer, said that the takeover of his business by the CME Group of the United States of America is an important overseas commitment to a London that is facing Brexit today.
During his results announcement earlier, the former treasurer of the Tory party said that the said deal “will bring huge benefits to our clients, the market, and to the City of London through CME’s commitment to maintaining London as its European headquarters. As Britain continues its path to leave the EU, commitments like this matter.”
He reiterated his perception that the United Kingdom was wasting its time on things such as the review on gender pay gap, which requires all firm with over 250 employees to publish their gender pay gaps when it really needs to concentrate on Brexit.
Delivering his final results statement before Nex is acquired by CME, the largest futures exchange in the world, Spencer said that he welcomed heightened market volatility which was helping to improve his business.
The CME Group of Chicago has a market valuation amounting to around $54bn, nearly five times that of the London Stock Exchange, and has vowed to maintain its European base in London after the completion of the deal.
The profit before tax of Nex increased by two percent over the year to £125m, and the group revealed that it had chopped off £10m more of costs through cutting down its infrastructure and “redesigning operating models” across the divisions of the company.
Nex also said that the company was “in discussions” with some financial institutions over additional funding for its listing venue for small and mid-sized businesses that is called Nex Exchange.
Revenue at the regulatory reporting branch of Nex rose by 300 percent to £9m, as new rules including Mifid caused traders to boost their reporting.
The overall revenue for the group increased by nine percent to £591m.