CHICAGO and LONDON, Nov. 2,
2018 /PRNewswire/ -- CME Group Inc. (Nasdaq: CME) today
announced that it has completed its acquisition of NEX Group plc
(NXG.L). The combined company will enable clients worldwide to
trade futures, cash and over-the-counter (OTC) markets, optimize
portfolios and analyze data to efficiently manage risk and capture
opportunities.
CME Group 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 remain in Chicago, with London continuing 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. The combined
company's leading electronic FX and fixed income platforms will
deliver new trading opportunities and simplify access by reducing
the number of touchpoints to trade across platforms. In
addition, the combined company's post-trade services expertise will
strengthen its compression, reconciliation and processing
businesses.
"We are extremely pleased to complete this acquisition and
welcome NEX into CME Group," said CME Group Chairman and Chief
Executive Officer Terry Duffy. "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."
"Michael Spencer and his team
have built NEX into a world-class company. Our combined
organization will preserve the existing market structure of our
various businesses while also creating efficiencies and
streamlining technology for our clients. With a significantly
expanded global footprint, we are committed to ensuring a smooth
transition for all customers and partners going forward."
"Today NEX becomes part of the world's leading exchange group,"
said Michael Spencer.
"Together we will continue to innovate and deliver
industry-leading technology to our customers and help to drive the
continued development of the financial markets. I am excited about
the future for this combined group and the many new opportunities
that it will provide for our employees, customers and the wider
marketplace. I look forward to working with Terry, the CME Group
Board of Directors and the combined team from both CME and NEX as
we shape and grow the company."
As previously announced, today Spencer has joined the CME Group
Board of Directors and will remain with the combined company as a
Special Adviser, working with key clients, regulators and officials
in EMEA and Asia.
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. CME Group will begin integrating NEX business
operations and anticipates run-rate cost synergies of $200 million annually by the end of 2021.
About CME Group
As the world's leading and most
diverse derivatives marketplace, CME Group (www.cmegroup.com)
enables clients to trade futures, cash and OTC markets, optimize
portfolios, and analyze data – empowering market participants
worldwide to efficiently manage risk and capture opportunities. CME
Group exchanges offer the widest range of global benchmark products
across all major asset classes based on interest
rates, equity indexes, foreign
exchange, energy, agricultural
products and metals. The company offers futures
trading through the CME Globex® platform, fixed income trading via
BrokerTec and foreign exchange trading on the EBS platform.
In addition, it operates one of the world's leading central
counterparty clearing providers, CME Clearing. With a range
of pre- and post-trade products and services underpinning the
entire lifecycle of a trade, CME Group also offers optimization
services through TriOptima, and trade processing and reconciliation
services through Traiana.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange,
Globex, and, E-mini are trademarks of Chicago Mercantile Exchange
Inc. CBOT, Chicago Board of
Trade, KCBT and Kansas City Board
of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York
Mercantile Exchange and ClearPort are trademarks of New York
Mercantile Exchange, Inc. COMEX is a trademark of Commodity
Exchange, Inc. BrokerTec, EBS, TriOptima, and Traiana are
trademarks of BrokerTec Europe LTD, EBS Group LTD, TriOptima AB,
and Traiana, Inc., respectively. Dow Jones, Dow Jones
Industrial Average, S&P 500 and S&P are service and/or
trademarks of Dow Jones Trademark Holdings LLC, Standard &
Poor's Financial Services LLC and S&P/Dow Jones Indices LLC, as
the case may be, and have been licensed for use by Chicago
Mercantile Exchange Inc. All other trademarks are the
property of their respective owners.
Forward looking statements
This Press Release contains certain forward-looking
statements with respect to CME Group, NEX and combined
company. These forward-looking statements can be identified
by the fact that they do not relate only to historical or current
facts. Forward-looking statements often use words such as
"anticipate", "target", "expect", "estimate", "intend", "plan",
"goal", "believe", "aim", "will", "may", "would", "could" or
"should" or other words of similar meaning or the negative
thereof. Forward-looking statements include statements
relating to the following: (i) future capital expenditures,
expenses, revenues, economic performance, synergies, financial
conditions, market growth, dividend policy, losses and future
prospects; (ii) business and management strategies and the
expansion and growth of the operations of the CME Group or NEX; and
(iii) the effects of government regulation on the business of the
CME Group or NEX.
These forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of CME Group, NEX, or the
combined company to be materially different from any results,
performance or achievements expressed or implied by such
forward-looking statements. These forward-looking statements
are based on numerous assumptions regarding the present and future
business strategies of CME Group, NEX or the combined company and
the environment in which each will operate in the future.
These forward-looking statements are based largely on the
expectations of CME Group and NEX and are subject to a number of
risks and uncertainties. These include, but are not limited
to, the ability to achieve the expected cost savings, synergies and
other expected strategic benefits from the transaction within the
time frames indicated; the integration of NEX with CME Group's
operations may not be successful or may be delayed or may be more
costly than expected; general industry and market conditions;
general domestic and international economic conditions; and
governmental laws and regulations affecting domestic and foreign
operations.
All subsequent oral or written forward-looking statements
attributable to CME Group, NEX, the combined company or any persons
acting on their behalf are expressly qualified in their entirety by
the cautionary statement above. Neither CME Group nor NEX
undertakes any obligation to update publicly or revise
forward-looking statements, whether as a result of new information,
future events or otherwise, except to the extent legally
required.
The form 10-K of CME Group for the year ended December 31, 2017 contains additional information
regarding forward-looking statements with respect to CME
Group.
CME-G
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SOURCE CME Group