ICE Formally Completes Acquisition of BGC’s Trayport

Intercontinental Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (NYSE: ICE), a global network of exchanges and Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term houses, has formally completed its acquisition of Trayport from BGC Partners and GFI Group for $650 million, nearly one month after initially entering into a mutual board-approved agreement, according to an ICE statement.

Back on November 16, ICE entered into an agreement to acquire Trayport, a subsidiary of GFI Group, for $650 million in ICE common stock, which is now estimated at approximately 2.5 million ICE common shares. The agreement represents an important stroke for ICE with the hopes of ushering in the provision of a suite of new services to the European OTC energy markets, which presently includes comprehensive offerings of European power, natural gas and coal options.

By and large, the sale has been anticipated since GFI and BGC merged back in March, though the passage of a definitive agreement represents a victory for ICE, which successfully outmaneuvered CME Group, an original bidder prior to the involvement of BGC Group.

According to ICE Chairman and Chief Executive Office (CEO) Jeffrey C. Sprecher, in a recent statement on the agreement, "We will continue to invest in the Trayport platform, maintaining and enhancing its current model to serve the European OTC markets by facilitating the interaction of brokers, utilities and end users, clearing houses and other market participants.”

“As the European energy markets evolve, we look forward to supporting and developing Trayport’s market leading technology to assist the management of price risks in a liquid, broker-centric marketplace," he added.