Trading systems merger raises competition concerns
The CMA has found that ION바카라 사이트™s completed purchase of Broadway Technology raises competition concerns in the supply of electronic trading systems.
Both companies provide specialist trading systems to financial organisations, such as banks, that allows the trading of foreign exchange (FX) and fixed income securities (FI) such as government bonds.
The Competition and Markets Authority (CMA) has concerns relating to the supply of FI electronic trading systems. Based on evidence from the companies바카라 사이트™ own documents and feedback received from their customers, the CMA considers that ION is by far the largest supplier of these systems and Broadway is one of only two significant competitors.
The CMA바카라 사이트™s initial Phase 1 investigation has found that the deal could therefore leave customers facing a significantly reduced choice of supplier with the potential for higher prices or more onerous terms and conditions on their services.
Joel Bamford, CMA Senior Director, said:
We바카라 사이트™ve examined a wide range of evidence during this investigation, and numerous customers have raised serious concerns. We consider ION to already be the largest provider of these products and they바카라 사이트™re buying one of their closest competitors.
We are therefore concerned that this merger could damage competition in a market which is critical to trading activities in the UK, leaving the merging companies바카라 사이트™ customers with a worse deal.
ION must now address the CMA바카라 사이트™s concerns within 5 working days. If they are unable to do so, the deal will be referred for an in-depth Phase 2 investigation.
For more information, visit the ION Investment Group Limited / Broadway Technology Holdings LLC merger inquiry web page.
For media enquiries, contact the CMA press office on 020 3738 6460 or press@cma.gov.uk