NEX Group

NEX Group plc, formerly known as ICAP plc, is a UK-based business focused on electronic financial markets and post trade business for other financial institutions rather than private individuals. They are known as an inter-broker dealer. The company was listed on the London Stock Exchange until it was acquired by CME Group in November 2018.

"NEX Exchange" redirects here. For Montenegrin stock exchange, see NEX Stock Exchange.

NEX Group plc
TypeSubsidiary
IndustryFinancial Services
Founded2016 (2016)
FounderMichael Spencer
Headquarters
London
,
United Kingdom
Key people
Charles Gregson, Non-Executive Chairman
Michael Spencer, Group CEO
ServicesInter-broker dealer, trade matching, settlement (financial)
Revenue£543 million (2017)[1]
£145 million (2017)[1]
£120 million (2017)[1]
Number of employees
1,941 (2017)[1]
ParentCME Group
Websitewww.nex.com

History

The company developed from a merger between Garban plc and Intercapital plc which created Garban-Intercapital plc in 1999.[2] Intercapital plc was founded by Michael Spencer in 1986 as Intercapital Private Group Limited ('IPGL'); in 1998 it was acquired by Exco plc in a reverse takeover and the enlarged business was renamed Intercapital plc.[3] Garban plc was established in the 1970s as the financial services division of MAI plc. Several takeovers followed, starting in 1977 when MAI plc acquired Harlow, Meyer and Co. Mallon & Dorney and Garvin GuyButler were acquired by 1982 and in 1983, Garban LLC was acquired giving MAI plc significant broking interests in the UK and overseas. In 1996, MAI plc was merged into United News & Media plc: its financial services division was then de-merged and listed on the London Stock Exchange in 1998 as Garban plc.[2]

The company changed its name from Garban-Intercapital plc to ICAP plc in 2001.[2] In 2006 it bought EBS, a major trading platform for foreign exchange.[4] On 5 December 2007, ICAP acquired Traiana, Inc. for $247 million (£121 million).[5] Traiana is a provider of post-trade processing, client servicing, and trading software for financial institutions.[6]

In June 2012 ICAP acquired Plus Stock Exchange plc and relaunched it as the ICAP Securities and Derivatives Exchange (ISDX), one of only six Regulated Investment Exchanges (RIE) in the United Kingdom, the others being the London Stock Exchange (LSE), the London International Financial Futures and Options Exchange (LIFFE), the London Metal Exchange (LME), the Intercontinental Exchange (ICE) and BATS Chi-X Europe.[7] In September 2013, ICAP settled allegations that they had manipulated the London Interbank Offered Rate (LIBOR). The United States Department of Justice charged three former employees, and ICAP paid $65 million to the U.S.'s Commodity Futures Trading Commission and £14 million ($22 million) to Britain's Financial Conduct Authority.[8]

In October 2014, ICAP's in-house legal team was awarded the Legal 500 2014 UK In-House Team Winner in the Litigation category.[9] In November 2015, ICAP agreed terms for the disposal of its global hybrid voice broking and information business to Tullett Prebon.[10] The company changed its name from ICAP plc to NEX Group plc in December 2016.[11]

In March 2018, it was announced that NEX Group would be bought by American CME Group for US$5.5 billion.[12] The acquisition was completed on 2 November 2018.[13]

References
  1. "Full Year Results 2017". NEX Group. Retrieved 15 May 2017.
  2. "ICAP History". Icap.com. Retrieved 18 April 2011.
  3. "Numis Corporation Board Changes" (PDF). Retrieved 18 April 2011.
  4. ICAP Agrees to Buy Electronic Currency Broker EBS, Hamish Risk and Andrew Reierson, Bloomberg, 2006-04-21
  5. "ICAP acquires Israeli post-trade software firm Traiana". ITPro. 11 October 2007.
  6. "Traiana, Inc. - Company Profile". BusinessWeek.
  7. "ICAP Acquires Plus Markets' Unprofitable Stock Exchange". Bloomberg. 18 May 2012. Retrieved 21 March 2014.
  8. Scott, Mark and Julia Werdigier (25 September 2013). "ICAP to Pay $87 Million Fine in Libor-Fixing Case". The New York Times. Retrieved 26 September 2013.
  9. "Legal 500 Awards 2014". The Legal 500. Retrieved 15 October 2014.
  10. "Tullett to Acquire ICAP's Global Hybrid Voice Broking Business". Bloomberg. Retrieved 11 November 2015.
  11. "ICAP reborn as NEX Group". Proactive Investors. 16 May 2016. Retrieved 18 December 2016.
  12. "CME Group agrees to buy Michael Spencer's Nex for £3.9bn". Financial Times. 29 March 2018.
  13. "NEX and CME announce deal completion". Finance Feeds. 2 November 2018. Retrieved 6 November 2018.
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