UK: Competition watchdog says ICE has to sell Trayport

Financial and commodity markets operator Intercontinental Exchange will have to sell commodities software house Trayport to preserve competition in the energy trading industry, Britain’s competition watchdog said on Monday.

ICE, one of the world’s biggest exchange operators, closed its deal to buy Trayport in December last year for around $650 million in stock. It beat off arch-rival CME Group Inc to acquire the technology firm and reinforce its position in European energy trading markets.

But Britain’s Competition and Markets Authority said on Monday that traders, brokers, exchanges and clearing houses that compete with ICE in the trading and clearing of European utilities, depend on the Trayport platform to carry out these transactions effectively.

The watchdog concluded that the deal needed to be unwound as ICE could use Trayport’s platform to reduce competition between itself and its rivals, leading to increased fees for execution and clearing, and a worsening of terms offered to traders.

“ICE is disappointed by the decision, having presented a compelling clearance case, and will now consider its options including the possibility of an appeal,” the company told Reuters in an emailed statement.

Full Content: Bloomberg

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