Intercontinental Exchange Acquires TMC Bonds, Bolstering Fixed Income Segment

Intercontinental Exchange (NYSE:ICE) has made its latest splash in the mergers and acquisition space. The global operator of exchanges and clearing houses has entered into an agreement to acquire TMC Bonds LLC for a sum of $685 million in cash, helping shore up its fixed income capabilities.

ICE’s purchase of TMC Bonds will also look to take advantage of the group’s anonymous trading across multiple segments. This includes click-to-trade and request-for-quote (RFQ) across a number of different asset classes including Municipals, Corporates, Treasuries, Agencies, and Certificates of Deposit.

ICE had been eying TMC Bonds, a leading fixed income marketplace, which following the acquisition will be operating in tandem alongside its own fixed incomet trading and data solutions. ICE’s President Benjamin Jackson, commented on the agreement, “TMC Bonds will offer a new and complementary access point to Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term for our customers and expand our portfolio of diverse solutions in the global fixed income markets across Analytics Analytics Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision-making. In the trading space, analytics are applied in a predictive manner in an attempt to forecast the price more accurately. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analy Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision-making. In the trading space, analytics are applied in a predictive manner in an attempt to forecast the price more accurately. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analy Read this Term, execution and post-trade.”

“As the fixed income markets continue to automate and migrate to electronic trading, ICE’s trading and data infrastructure offer customers more choices to access liquidity, conduct price discovery and manage risk in more efficient ways,” he added.

The transaction is expected to officially close during Q2 2018, pending the requisite regulatory approvals. “By leveraging both ICE’s expansive reach and breadth of data and analytics, TMC’s clients will have access to workflow solutions far superior to what’s currently available in the market,” noted Thomas Vales, TMC’s Chief Executive Officer.

The acquisition is the second development for ICE in as many months, after its subsidiary, ICE Benchmark Administration Limited (IBA), garnered authorization as a regulated benchmark administrator under the EU’s Benchmarks Regulation. The IBA was given final authorization by the UK’s Financial Conduct Authority (FCA).