UK: Watchdog threatens ICE with full competition probe into Trayport deal

Britain’s competition watchdog said on Wednesday it is to open an in-depth investigation into Intercontinental Exchange’s takeover of commodities trading software house Trayport unless the exchange can offer undertakings within five days.

The Competition and Markets Authority (CMA) said it was concerned that ICE could use its ownership of Trayport’s software to raise prices and/or reduce the quality of its service to rival exchanges to divert its rivals’ trades to ICE’s own exchange and clearing house.

“Given these concerns and their potential effect on those providers that currently compete with ICE, along with extensive third party concerns, we think the merger warrants an in-depth investigation unless ICE can offer suitable undertakings,” CMA executive director of markets and mergers, Andrea Coscelli, said in a statement.

ICE’s $650 million takeover of London-based Trayport was completed in December.

A CMA spokeswoman said ICE has five days to offer suitable undertakings and if any are offered, the watchdog has another five days to decide if they address its competition concerns.

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