UK watchdog investigating Nasdaq’s $190m bid for Cinnober – Fintech Futures

The UK’s Competition and Markets Authority (CMA) is looking into Nasdaq’s $190 million all cash offer for Swedish trading tech firm Cinnober.

OK in UK?

OK in UK?

As reported in September, Nasdaq said the proposed acquisition “advances and accelerates Nasdaq’s strategic direction as a technology and analytics provider to the global capital markets and beyond”. It is also expected to deliver “attractive shareholder returns” – 10% ROIC within three to five years.

At that time, Adena Friedman, president and CEO of Nasdaq, explained: “The combined intellectual capital, technology competence and capabilities of Cinnober and our Market Technology business will expand the breadth and depth of our fastest growing division at Nasdaq.”

However, the CMA has launched a “merger inquiry” with an invitation to comment until 7 December 2018 in phase 1.

The CMA says it is considering whether the acquisition “may be expected to result in a substantial lessening of competition within any market or markets in the UK for goods or services”.

Cinnober provides solutions and services to trading and clearing venues worldwide, including exchanges, clearinghouses, banks and brokers. Largely based on the firm’s proprietary TRADExpress Platform, they cover price discovery and matching, real-time risk management, clearing and settlement, index calculation, data distribution and market surveillance.

Amongst Cinnober’s customers are Asia Pacific Exchange, Australian Securities Exchange, B3, Dubai Gold and Commodities Exchange, Euronext, Japan Exchange Group, Johannesburg Stock Exchange, London Metal Exchange, LME Clear, NYSE and the Stock Exchange of Thailand.

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