Trayport

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Trayport
Trayport new.png
Founded 1993
Headquarters London, with offices in New York and Hong Kong
Key People Kevin Heffron, CEO
Products electronic trading networks and software
Website www.trayport.com
Releases Company News

Trayport Ltd. is an electronic energy trading platform based in London.[1] The firm is a provider of software to the European over-the-counter energy markets. Trayport is the main platform that connects traders, brokers and utilities to the energy market’s electronic trading and clearing systems. About 70-80 per cent of European utilities trades flows through it.[2]

It was acquired by the Intercontinental Exchange (ICE) from BGC Partners in December of 2015, but the U.K. Competition and Markets Authority issued a stay in January 2016 that prevented ICE from integrating Trayport or transferring ownership to ICE.[3]

The CMA eventually called for ICE to divest itself of Trayport to preserve competition in the utility derivatives markets, and Trayport appealed that decision and lost. In July of 2017 ICE said it would sell Trayport[4] and in October of 2017 ICE announced it had agreed to sell Trayport to TMX Group in exchange for certain TMX Group assets and £350 million cash.[5]

History

Intercontinental Exchange acquired Trayport on December 11, 2015 from BGC Partners for approximately $650 million.[6] The acquisition provided ICE new services to the European over-the-counter (OTC) energy markets.[7]

Trayport was founded in 1993 by Edmund Hor, who created technology initially used by energy inter-dealer brokers as a price dissemination platform. Hor started the company when he was 27 after attempting to trade Forex himself. His first customer was Spectron, the energy broker, which asked him to create some software that would allow users to "share information between all of their spreadsheets."[8] That project ultimately led to the creation of GlobalVision, the technology on which the firm was built.

In February 2008, GFI Group Inc. acquired Trayport for approximately $164 million.[9] At the time, Trayport had estimated revenues of $28 million for its fiscal year ending Jan. 31, 2008.[10]

On Feb. 5, 2009, Trayport announced management changes, appointing Elliott Piggott as its managing director. He had previously served as commercial director at the firm. Hor, who had been serving as managing director, was named product director and a board director.[11] Piggott left the firm in December 2015, shortly after ICE purchased Trayport from BGC. He was replaced by Keith Heffron, former chief operating officer at Trayport.[12]

In July 2009, the firm announced it was connecting to the CME Globex trading platform and the CME ClearPort for electronic access to trading and clearing energy and metals contracts.[13] One month later, the firm opened its link to LCH.Clearnet for automated clearing.

In November 2013, Trayport acquired Contigo, a software firm specializing in risk management and compliance for energy traders.[14]

In July 2014, CME Group put in a bid to buy Trayport's parent GFI Group for $580 million for Trayport and GFI's FENICS businesses. [15] However, GFI shareholders voted down the deal with CME Group and instead supported a counter offer from BGC Partners of $6.10 per share after a long bidding war between the two prospective buyers.[16]

BGC Partners completed its $750 million tender offer for GFI Group in February 2015. Nine months later, BGC announced the sale of Trayport to ICE.

In August of 2016 the Competition and Markets Authority, the UK's antitrust regulator, said the Intercontinental Exchange might have to sell Trayport because of concerns it could cause ICE to dominate European energy trading. The CMA began an investigation into the acquisition deal. In March of 2017, a UK appeals court upheld a ruling by the regulator that ICE had to sell Trayport because the deal could curb competition in the European energy market.[17]

Products and Services

  • GlobalVision is a trading and data routing platform used to trade multiple asset classes.[18]
  • Trayport GlobalVision Broker Trading System is an electronic trading platform for inter-dealer brokers and other market participants.[19]
  • GlobalVision Exchange Trading System is a matching engine that enables cleared and bilateral trading, market operations and data distribution for exchanges.

Trayport Managed Services include pre-trade decision making and risk management, order entry, management, routing and connectivity, execution and matching systems, bilateral credit, surveillance, clearing and risk management, and reporting and market data.

Key People

References

  1. About Us. Trayport.
  2. UK court upholds ICE Trayport sale order. The Financial Times.
  3. ICE’s $650m Trayport deal set for lengthy probe. The Financial Times.
  4. ICE to sell Trayport after losing UK competition watchdog appeal. Reuters.
  5. Intercontinental Exchange Announces Sale of Trayport to TMX Group in Exchange for £350MM Cash and NGX and Shorcan Energy. ICE.
  6. Intercontinental Exchange Completes Acquisition of Trayport. ICE.
  7. ICE beats CME to Trayport with $650m deal. The Financial Times.
  8. Hor Widens His View. Waters.
  9. Press Release. GFI.
  10. Press Release. GFI.
  11. Press Release. Trayport.
  12. Trayport COO takes over after CEO Piggott leaves. FOW.
  13. Trayport's Trading Gateway Link to CME Group's Energy and Metals Products Goes Live in July. Press release.
  14. Trayport complete acquisition of Contigo. FOW.
  15. CME to buy GFI Group in $580 mln deal. Reuters.
  16. Dealmaking saga over GFI nears conclusion. The Financial Times.
  17. UK Court upholds ICE Trayport sale order. The Financial Times.
  18. Trayport Global Vision. Trayport.
  19. Broker Solution. Trayport.