So, can they become the Amazon of the financial markets? Spencer would say unequivocally, yes. Why build a new risk management platform in-house when you can buy something from NEX that also works with EBS BrokerTec and other platforms? They like what they’ve got because it works.īut attitudes are changing as internal IT budgets shrink and regulations are burying old systems. The reality is that many firms still run on legacy systems.
That is the future many see – a world where banks, brokers and trading firms can seamlessly connect to technology, upgrade systems and keep on rolling. Cloud services, machine learning and leaps in the speed and distribution of data are making technology buys and implementation somewhat easier. But today’s technology is allowing NEX and many other players to make the move in a much more seamless way than before. Now it is a technology company that acquires other data and technology companies, and runs a few exchanges too. Now we’re a technology firm that happens to own exchanges.” The Intercontinental Exchange used to be an exchange that acquired other exchanges and clearing houses.
In the words of Nasdaq Vice Chairman Sandy Frucher: “We used to be an exchange that owned technology. What is also interesting about the approach, however, is that from a technology services standpoint, NEX is happy to grab solutions that are decidedly not NEX products or services if it makes the client happy.Īs such they’ve taken on some of the identity of modern exchanges, which do many things besides count pennies for every trade and cleared contract. Where those companies used to work and run largely as siloed operations under a loose ICAP umbrella, they now are firmly in the fold – aimed at offering solutions all along the transaction chain. The VC can add the pieces it needs along the way. From there, they can sell all of those things – EBS BrokerTec along with its menu of complementary technology, like Traiana, Trioptima, Enso and Reset. In a simplistic sense, the company is rolling all of its trading platforms, technology companies and venture capital arm into one firm. So what’s left? Plenty actually, although it took me a while to figure it out. But it just isn’t what he wants to do with his time or shareholder money.
Such is the case with NEX Group, the former ICAP group minus the ICAP voice brokerage business.īy now, we know that NEX’s CEO Michael Spencer looked to the future and decided that voice brokering wasn’t it. Known as OSTTRA, the new company combines CME’s optimisation businesses including Traiana, TriOptima, and Reset and IHS Markit’s derivatives reporting service, MarkitSERV, to offer post-trade service to OTC markets.JOHN LOTHIAN | Sometimes the machine needs a reboot. IHS Markit paid the derivatives exchange a $113 million equalisation payment to purchase 50% of the newly launched entity. “I’m excited to start my new role tomorrow at BGC Partners, Fenics Market Data Group… Thanks to all my friends and ex colleagues at CME Group, NEX, ICAP, EBS and BrokerTec for making my time at the firm extremely memorable, sincerely,” Bencheikh said in the post.ĬME recently launched a new post-trade services company in collaboration with IHS Markit after confirming plans for the joint venture earlier this year. He was a former EMEA operations manager at ICAP and managed NEX’s Data Operations and Quality Assurance team globally, ICAP’s former Information Services business. He joins the firm this month after three years at CME working within the exchange group’s Global Command Centre.īencheikh previously worked at NEX Group, formerly ICAP, which CME acquired for £3.9 billion in 2018. Ray Bencheikh confirmed in a post on social media that he has been appointed global head of data operations for Fenics Market Data starting this month in London. Interdealer broker BGC Partners has hired a market operations director for CME Group’s electronic trading platform Globex to lead its data operations for the Fenics division.