CME Group, the world’s leading and most diverse derivatives marketplace, announced on Monday it has completed its acquisition of NEX Group, which in returned created a global markets company across futures, cash and OTC. According to CME, the combined organization enables market participants worldwide to manage risk and capture opportunities across the trading lifecycle.
CME reported it will retire the NEX name and brand but will continue to operate its individual Markets and Optimisation businesses as sub-brands including BrokerTec, EBS, Traiana, and TriOptima. Corporate headquarters will notably remain in Chicago, and the London location will continue to serve as CME Group’s European headquarters.
“CME Group will use its technology, futures trading and product development expertise to strengthen and scale NEX businesses, while preserving their existing market structures.”
Speaking about the acquisition, CME Group Chairman and CEO, Terry Duffy, stated:
“We are extremely pleased to complete this acquisition and welcome NEX into CME Group. By combining the strengths of our two leading organizations, CME Group is uniquely positioned to address the changing needs of market participants worldwide. Together, we will provide efficient access to futures, cash and OTC markets, as well as post-trade services and data offerings that will further support cost-effective trading and risk management.”
CME went on to add that the acquisition is expected to be immediately accretive to adjusted cash earnings per share and creates a company with pro forma 2017 annual revenue of $4.3 billion. The company will begin integrating NEX business operations and anticipates run-rate cost synergies of $200 million annually by the end of 2021.