CME Group Bids to Acquire GFI Group's OTC Energy, FX Futures and Options Tech
- Trayport and FENICS are the subsidiaries which the CME Group is after, as immediately after the acquisition a private consortium led by GFI Group's management will acquire the company's wholesale brokerage business.
The CME Group has issued an announcement detailing its bid for the acquisition of Trayport and FENICS from the GFI Group. The strategic transactions in order to make the deal possible include the full acquisition by the CME Group of the GFI Group for $4.55 per share, all paid out in CME Group stock. The price paid for the takeover is at a 46% premium above yesterday's closing price.
According to the announcement, after the conclusion of the transaction, a private consortium led by GFI Group's management will acquire from the CME Group the wholesale brokerage of GFI for $165 million in a cash deal, assuming about $63 million of unvested deferred compensation and other liabilities. The brokerage business will continue using FENICS and Trayport by entering into long-term commitment agreements.
The acquisition is expected to close in early 2015, and is subject to the approval of the stockholders of the GFI Group.
CME Group's Executive Chairman, Terry Duffy, stated: "By acquiring Trayport, a well-established business that already has a strong client base, we will both expand CME Group's involvement with European energy markets and increase operational efficiencies and trading opportunities for all European energy market participants – all while maintaining the independence of the Trayport operating platform. This acquisition is another strong example of how CME Group is expanding its international footprint and committed to the European marketplace overall."
The CME Group's CEO, Phupinder Gil, added: "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."
Trayport and FENICS Subsidiaries
Current management at Trayport will continue to operate the subsidiary. The acquisition is adding to the European energy business of the CME Group, where the technology is used by brokers, exchanges and trading counterparties. Several markets like, oil, natural gas, coal, power and carbon emissions among other have been benefiting from the solutions offered by the company.
The acquisition of FENICS, which is keeping its current management structure, provides price discovery, 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 more accurately forecast the price. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analyt 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 more accurately forecast the price. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analyt Read this Term, Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term and workflow connectivity services for the global OTC FX options market. The takeover deal continues CME Group’s investment in European infrastructure after the company launched its FX futures and options on CME Europe earlier this year.
The CME Group has issued an announcement detailing its bid for the acquisition of Trayport and FENICS from the GFI Group. The strategic transactions in order to make the deal possible include the full acquisition by the CME Group of the GFI Group for $4.55 per share, all paid out in CME Group stock. The price paid for the takeover is at a 46% premium above yesterday's closing price.
According to the announcement, after the conclusion of the transaction, a private consortium led by GFI Group's management will acquire from the CME Group the wholesale brokerage of GFI for $165 million in a cash deal, assuming about $63 million of unvested deferred compensation and other liabilities. The brokerage business will continue using FENICS and Trayport by entering into long-term commitment agreements.
The acquisition is expected to close in early 2015, and is subject to the approval of the stockholders of the GFI Group.
CME Group's Executive Chairman, Terry Duffy, stated: "By acquiring Trayport, a well-established business that already has a strong client base, we will both expand CME Group's involvement with European energy markets and increase operational efficiencies and trading opportunities for all European energy market participants – all while maintaining the independence of the Trayport operating platform. This acquisition is another strong example of how CME Group is expanding its international footprint and committed to the European marketplace overall."
The CME Group's CEO, Phupinder Gil, added: "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."
Trayport and FENICS Subsidiaries
Current management at Trayport will continue to operate the subsidiary. The acquisition is adding to the European energy business of the CME Group, where the technology is used by brokers, exchanges and trading counterparties. Several markets like, oil, natural gas, coal, power and carbon emissions among other have been benefiting from the solutions offered by the company.
The acquisition of FENICS, which is keeping its current management structure, provides price discovery, 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 more accurately forecast the price. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analyt 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 more accurately forecast the price. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analyt Read this Term, Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term and workflow connectivity services for the global OTC FX options market. The takeover deal continues CME Group’s investment in European infrastructure after the company launched its FX futures and options on CME Europe earlier this year.