NEX Group plc, formerly known as ICAP plc, is a UK-based business focused on electronic

financial market A financial market is a market in which people trade financial securities and derivatives at low transaction costs. Some of the securities include stocks and bonds, raw materials and precious metals, which are known in the financial markets ...

s and post trade business for other

financial institutions Financial institutions, sometimes called banking institutions, are business entities that provide services as intermediaries for different types of financial monetary transactions. Broadly speaking, there are three major types of financial insti ...

rather than private individuals. They are known as an inter-broker dealer. The company operates BrokerTec and

EBS EBS may refer to: Broadcasting * EBS TV (Ethiopia) * Educational Broadband Service, US TV service * Educational Broadcasting System, South Korea ** EBS 1, a South Korean television channel * Emergency Broadcast System, former US Warning system ...

, respectively among the largest treasuries and

foreign exchange The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. It includes all as ...

markets in the world. NEX was listed on the

London Stock Exchange London Stock Exchange (LSE) is a stock exchange in the City of London, England, United Kingdom. , the total market value of all companies trading on LSE was £3.9 trillion. Its current premises are situated in Paternoster Square close to St Pau ...

until it was acquired by

CME Group CME Group Inc. (Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange, The Commodity Exchange) is an American global markets company. It is the world's largest financial derivatives exchange, and trades in asset class ...

in November 2018.

History

The company developed from a

merger Mergers and acquisitions (M&A) are business transactions in which the ownership of companies, other business organizations, or their operating units are transferred to or consolidated with another company or business organization. As an aspect ...

between ''Garban plc'' and ''Intercapital plc'' which created ''Garban-Intercapital plc'' in 1999. ''Intercapital plc'' was founded by

Michael Spencer Michael Alan Spencer, Baron Spencer of Alresford (born 30 May 1955), sometimes known as "Spens", is a British billionaire businessman and philanthropist. He is the founder of NEX Group, a UK-based business focused on electronic markets and post ...

in 1986 as ''Intercapital Private Group Limited'' ('IPGL'); in 1998 it was acquired by Exco plc in a

reverse takeover A reverse takeover (RTO), reverse merger, or reverse IPO is the acquisition of a public company by a private company so that the private company can bypass the lengthy and complex process of going public. Sometimes, conversely, the public compan ...

and the enlarged business was renamed ''Intercapital plc''. ''Garban plc'' was established in the 1970s as the financial services division of ''MAI plc''. Several takeovers followed, starting in 1977 when ''MAI plc'' acquired ''Harlow, Meyer and Co''. ''Mallon & Dorney'' and ''Garvin GuyButler'' were acquired by 1982 and in 1983, ''Garban LLC'' was acquired giving ''MAI plc'' significant broking interests in the UK and overseas. In 1996, ''MAI plc'' was merged into United News & Media plc: its financial services division was then de-merged and listed on the London Stock Exchange in 1998 as ''Garban plc''. The company changed its name from ''Garban-Intercapital plc'' to ''ICAP plc'' in 2001. In 2006 it bought

, a major trading platform for foreign exchange. On 5 December 2007, ICAP acquired Traiana, Inc. for $247 million (£121 million). Traiana is a provider of post-trade processing, client servicing, and trading software for financial institutions. In June 2012 ICAP acquired Plus Stock Exchange plc and relaunched it as the ICAP Securities and Derivatives Exchange (ISDX), one of only six Regulated Investment Exchanges (RIE) in the United Kingdom, the others being the

(LSE), the

London International Financial Futures and Options Exchange The London International Financial Futures and Options Exchange (LIFFE, pronounced 'life') was a futures exchange based in London. In 2014, following a series of takeovers, LIFFE became part of Intercontinental Exchange, and was renamed ICE ...

(LIFFE), the

London Metal Exchange The London Metal Exchange (LME) is a futures and forwards exchange with the world's largest market in standarised forward contracts, futures contracts and options on base metals. The exchange also offers contracts on ferrous metals and precious ...

(LME), the

Intercontinental Exchange Intercontinental Exchange, Inc. (ICE) is an American company formed in 2000 that operates global financial exchanges and clearing houses and provides mortgage technology, data and listing services. Listed on the Fortune 500, S&P 500, and Russe ...

(ICE) and

BATS Chi-X Europe BATS Chi-X Europe is a London-based, order-driven pan-European equity exchange that has been a subsidiary of BATS Global Markets since 2011. It is a low latency, low cost alternative to exchange traded equities and exchange-traded funds (ETFs) ...

. In September 2013, ICAP settled allegations that they had manipulated the

London Interbank Offered Rate The London Inter-Bank Offered Rate is an interest-rate average calculated from estimates submitted by the leading banks in London. Each bank estimates what it would be charged were it to borrow from other banks. The resulting average rate is u ...

(LIBOR). The

United States Department of Justice The United States Department of Justice (DOJ), also known as the Justice Department, is a federal executive department of the United States government tasked with the enforcement of federal law and administration of justice in the United State ...

charged three former employees, and ICAP paid $65 million to the U.S.'s

Commodity Futures Trading Commission The Commodity Futures Trading Commission (CFTC) is an independent agency of the US government created in 1974 that regulates the U.S. derivatives markets, which includes futures, swaps, and certain kinds of options. The Commodity Exchange Ac ...

and £14 million ($22 million) to Britain's

Financial Conduct Authority The Financial Conduct Authority (FCA) is a financial regulation, financial regulatory body in the United Kingdom, but operates independently of the UK Government, and is financed by charging fees to members of the financial services industry. The ...

. In October 2014, ICAP's in-house legal team was awarded the Legal 500 2014 UK In-House Team Winner in the Litigation category. In November 2015, ICAP agreed terms for the disposal of its global hybrid voice broking and information business to

Tullett Prebon TP ICAP Group plc is a financial services firm headquartered in London, United Kingdom. Its stock is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. History The company was founded by Derek Tullett in 1971 as ...

. The company changed its name from ''ICAP plc'' to ''NEX Group plc'' in December 2016. In March 2018, it was announced that NEX Group would be bought by American

for US$5.5 billion. The acquisition was completed on 2 November 2018.

References

{{DEFAULTSORT:NEX Group Companies based in the City of London Financial services companies established in 1986 Companies formerly listed on the London Stock Exchange Multinational companies 1986 establishments in the United Kingdom 2018 mergers and acquisitions British subsidiaries of foreign companies

History

See also

References