Intercontinental Exchange Acquires TMC Bonds, Bolstering Fixed Income Segment

The purchase of TMC Bonds will also look to take advantage of the group’s anonymous trading across multiple segments.

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.

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Benjamin Jackson

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 for our customers and expand our portfolio of diverse solutions in the global fixed income markets across analytics, execution and post-trade.”

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“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).

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