25 November 2015

CME Group to buy Trayport and Fenics from GFI Group

30 July 2014  |  5436 views  |  0 CME Group Web Logo

Exchange operator CME Group has agreed a deal to buy the Trayport and Fenics trading technology units from GFI Group in a deal worth around $655 million.

Trayport provides trading software for the European energy markets, while Fenics offers price discovery, analytics, risk management and workflow connectivity services for the global OTC FX options markets.

In a transaction designed to keep taxes down, CME Group will pay around $580 million in shares for GFI and assume $240 million in outstanding debt, for a total value of $820 million.

The exchange operator will then immediately sell back GFI's wholesale brokerage business to a consortium led by the current management for $165 million in cash and the assumption of $63 million in liabilities.

This arrangement means that the moves qualify as tax-free exchanges of equity for both groups. The transaction - subject to the GFI shareholder approval - is expected to close in early 2015.

Explaing the acquisition, Phupinder Gill, CEO, CME Group, says: "Overall, we see a number of opportunities with Trayport as we expand our global footprint, including facilitating and servicing Asian energy markets as they emerge.

"The addition of Fenics will allow our FX futures and options business to more effectively and efficiently integrate and connect with the global OTC FX options marketplace."

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

27 June, 2014
18 November, 2013
10 September, 2008
01 February, 2008
14 November, 2000

Related company news


Top topics

Most viewed Most shared
MIT to run fintech degree course
8494 views comments | 35 tweets | 14 linkedin
Coinbase issues Bitcoin debit card
7663 views comments | 16 tweets | 21 linkedin
Apple Pay users given a free ride in Londo...
7620 views comments | 21 tweets | 29 linkedin
UK banks hardest hit by non-bank money tra...
7444 views comments | 27 tweets | 30 linkedin
R3 blockchain collaboration project builds...
6304 views comments | 30 tweets | 27 linkedin

Featured job

Competitive Package
New York City, NY

Find your next job