ICE: Sale of Trayport Not “Necessary, Appropriate or in Best Interests”

Intercontinental Exchange slaps down CMA suggestion of divestiture of Trayport platform, confirms intentions to carry on unchanged.

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Headquartered in Atlanta, Georgia, IntercontinentalExchange acquired Trayport in December 2015 for $650 million.

The Atlanta-based exchange operator said in a statement that it refuted the CMA's initial investigatory findings that the acquisition of the Trayport platform in December 2015 could lead to a lessening of competition.

In response to the watchdog's remedy proposal of complete divestiture of the platform, ICE said the idea was not "necessary, appropriate or in the best interests of Trayport's customers. ICE is committed to retaining ownership of Trayport and is willing to memorialize its intentions with regard to Trayport's future operation with formal CMA remedies."

While the CMA highlighted that ICE would be able to divert trades to its own platforms, as well as increasing fees for execution and clearing, as a direct result of its acquisition of Trayport, it would be open to the exchange operator changing the nature of the platform as a solution.

However ICE also rejected that compromise, stating that the Trayport platform would "continue to operate as it does today in European utilities markets and will ensure that brokers, exchanges and clearing houses are all treated fairly and reasonably."

"The findings are provisional and the final CMA decision is not expected to be known until mid-October", said the statement. "ICE now has an opportunity to address the CMA's concerns and demonstrate how they do not reflect the manner in which Trayport will operate as a subsidiary of ICE."

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