UK: Competition regulator makes concessions to ICE/Trayport deal

There has been some development concerning the deal between Trayport and Intercontinental Exchange, as the UK Competition and Markets Authority (CMA), which axed the deal in the fall of 2016, has issued a Derogation to its Final Order.

In the document, the UK regulator announces some concessions, which are made in response to MiFID II, the EU legislation that regulates firms who provide services to clients linked to ‘financial instruments’, and the venues where those instruments are traded.

The CMA consents to a derogation from paragraphs 3.1.1 and 3.2.8 of the Order limited to the purpose of allowing Trayport to carry out actions which are necessary to ensure its customers will be MiFID II compliant, as of January 2018, when the revised version of the legislation comes into effect.

The document marks the first concessions made by the CMA with regards to the deal between ICE and Trayport. The regulator has repeatedly insisted that ICE should sell Trayport. In March this year, the Competition Appeal Tribunal (CAT) agreed with the CMA on ICE having to divest Trayport. However, CAT also issued a judgment remitting consideration of the New Agreement to the CMA.

Full Content: Competition & Markets Authority

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