NEX Group

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NEX Group
Founded 2016
Headquarters London
Key People Michael Spencer, Chief Executive
Employees 1,800
Products Foreign Exchnage, OTC Interest Rates, Fintech
Twitter @nexgrp
LinkedIn Profile
Releases [[1] Company News]

NEX Group plc, headquartered in London, is a subsidiary of CME Group, operating electronic OTC interest rate and FX markets, a listed equities exchange, and technology for pre- and post-trade services, as well as a venture capital firm focused on fintech. [1][2]

CME Group acquired NEX Group for $5.4 billion on November 2, 2018, in a deal that combined CME's futures and clearing operations with NEX's FX and fixed income cash trading platforms. [3][4] The deal was approved by the UK Competition and Markets Authority in October of 2018.[5] CME Group retired the NEX name and brand but continued to operate its individual markets and optimization businesses as sub-brands, including BrokerTec, EBS, Traiana and TriOptima. Corporate headquarters remains in Chicago.

As of 2017, NEX Group's major offices were in London, New York, Tel Aviv, Stockholm and Singapore with about 1,800 employees worldwide.

NEX Group features four main departments, but the company offers its markets and products holistically to customers. In other words, its trading platforms, services and technologies are paired or offered together in a synergistic way.

The four main business units include:

NEX Markets, which runs the EBS BrokerTec electronic trading platform for interest rates and FX
NEX Optimisation. which offers a number of technologies and services along the transaction cycle, from risk management to workflow technologies to trade optimization solutions.
NEX Opportunities, the investment arm of the company aimed at investments in "pioneering" fintech firms
NEX Exchange, a small cap stock market, formerly known as ICAP Securities and Derivatives Exchange (ISDX)[6]

As of August 2017, the then publicly traded company had a market capitalization of £2.58 billion.

Markets, Products & Services[edit]

NEX has a mix of markets, post-trade technology offerings, as well as services that extend into the investment space.

NEX Markets[edit]

  • NEX Markets (formerly EBS BrokerTec) is NEX's electronic foreign exchange (FX) and fixed income business which serves customers from more than 50 countries. The BrokerTec platform facilitates electronically traded US and European fixed income contracts including US Treasuries, European Government Bonds and European Repo. EBS is one of the largest FX markets for spot FX, non-deliverable forwards and precious metals.[7][8] [9][10]

NEX Optimisation[edit]

  • NEX Optimisation provides cloud-hosted services across the transaction lifecycle, from pre-execution credit checks to multilateral portfolio compression of positions. The group is designed to offer expertise and services across all asset classes.[11][12]

NEX Optimisation includes:

  • TriOptima, a technology company providing OTC derivatives post trade risk management and infrastructure services such as portfolio compression and portfolio reconciliation for OTC derivatives market participants.
  • Traiana, a market infrastructure technology firm for cross-asset, pre-trade and post-trade processing and risk management for FX, exchange-traded derivatives, OTC products, credit default swaps and synthetic and cash equities.
  • Abide Financial, a global regulatory reporting solution across assets acquired in October 2016. It is also a reporting hub for EMIR, MIFID I and II, REMIT and other trade reporting systems.
  • NEX Regulatory Reporting, launched in March 2017 and powered by Abide's technology, provides regulatory reporting on multiple jurisdictions in the EU such as: EMIR, MIFID II, STFR, REMIT as well as in the US CFTC with Dodd-Frank,ASIC in Australia and MAS in Singapore.[13][14]
  • ENSO, acquired in early 2017, provides portfolio data analytics, treasury and portfolio finance functions. The technology is aimed at asset manager and hedge funds, looking to address counterparty relationships.
  • NEX Data provides cross-asset market data information. It also develops and administers traded index products
  • Reset provides technology that mitigates basis risk in interest rate, FX, inflation derivatives and options markets.

NEX Opportunities[edit]

  • NEX Opportunities (formerly Euclid Opportunities), launched in 2011, is a venture capital fund that invests in fintech startups. NEX Opportunities investments include: Abide Financial, ENSO Financial, OpenFin, Duco, OpenGamma, and RSRCHXchange.[15]

NEX Exchange[edit]

NEX Exchange, acquired in 2012, is a small cap stock market, formerly known as ICAP Securities and Derivatives Exchange (ISDX)). The market competes with the more established Alternative Investment Market, or AIM, owned by the London Stock Exchange Group.

It's biggest listing is the Arsenal Football Club, and as of April 2017, had about 85 listed companies on the exchange.


In October 2017 NEX Group launched PIVOT, a cash and collateral movement workflow tool enabling clients to make cash movements and money market sweeps. Through the partnership between NEX Optimisation and NEX Markets, PIVOT connects the ENSO Core platform with NEX Treasury, a cash and FX liquidity management center for the corporate and bank community.[16]


NEX Group's predecessor, ICAP, was formed in September 1999 by the merger of Garban plc and Intercapital plc into Garban-Intercapital plc. The Garban-Intercapital merger brought together Garban's government and corporate bonds, interest rate products and money market instruments with Intercapital's interest rate swaps and options, commodity swaps, illiquid securities and foreign exchange options. Garban-Intercapital plc was changed to ICAP plc in July 2001.

ICAP took a significant step in growing its business in Oct. 2007 when it purchased Traiana, a post-trade network for FX, exchange-traded derivatives, equities and equity derivatives in a transaction valued at $247 million. ICAP sold a 12 percent stake in Traiana in January 2013 to a group of seven of its largest customers: Bank of America Merrill Lynch, Barclays, Citi, Deutsche Bank, JPMorgan, Nomura and Royal Bank of Scotland.[17]

On February 15, 2013, ICAP launched its electronic interest rate derivative platform in the US for trading of US Dollar (USD) interest rate swaps. On June 3, 2013, ICAP began trading in Sterling (GBP) interest rate swaps on its electronic interest rate derivative platform.

After eliminating about 400 jobs at its broking unit in 2014 to cut costs and then pulling out of the Wholesale Markets Brokers Association Americas in 2015, ICAP eventually sold its voice brokerage unit to Tullett Prebon in December 2016 for £1.28 billion ($1.6 billion). The new Tullet-owned brokerage business was named TP ICAP.

The remaining divisions were reorganized and the company was renamed as NEX Group, which was launched at the end of 2016.[18] [19]

NEX Group went live with its US swaps execution facility (SEF) on July 5, 2017, bringing the company back to the electronic FX swaps trading market. NEX received regulatory approval from the CFTC in April 2017 to go live with the SEF, which will enable trading of non-deliverable forwards from NEX Markets’ EBS platform.[20]

For more, see "History" on the ICAP MarketsWiki page.

What's In A Name[edit]

The NEX Group name, announced in May 2016, was chosen from more than 300 names suggested by then-ICAP employees, friends, customers and the public, plus another 600 suggested names, according to NEX CEO Michael Spencer. NEX said the name represents an agile and innovative company that is "ambitious, cutting edge and able to compete in the fintech space."[21]

Key People[edit]