Nex Group Confirms Approach From CME


Today, Nex Group, an electronic trading firm in the United Kingdom, confirmed that it had received an approach from CME, a derivatives trader that is based in the United States.

A statement from the board of Nex stated that it “has received a preliminary approach by CME Group regarding a potential acquisition of Nex.

“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.”

A comment was not released by CME regarding the potential deal.

Nex, the trading firm, is an electronic broker that specializes in wholesale trading for various financial institutions. Previously, it was called ICAP until a change in name last year.

Nex is headed by Michael Spencer, the City heavyweight who is a former treasurer of the Conservative Party.

According to the rules of the stock market, CME is required to announce whether it intends to make an offer for Nex by the 12th of April.

The shares of Nex were up by more than two percent by the close of trading today, while the shares of CME increased by 1.5 percent.

In 2017, Nex confirmed that it had decided to choose Amsterdam as the location of the new European Union base of the company as a contingency against the probable fall-out of a hard Brexit.

Talking earlier this year, Spencer stated that the company only planned to relocate “half a dozen” of their employees to Amsterdam.

Spencer also called for the United Kingdom to reform the Markets in Financial Instruments Directive (Mifid II) following its exit from the European Union.

He said that he is in favour of the United Kingdom “peeling parts of it [Mifid II]” back post-Brexit. He said that the regulation is “materially overengineered,” even though he did acknowledge that some parts of it are welcome.