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ICE must sell Trayport energy trading platform

Staff Writer |
Intercontinental Exchange (ICE) has been told by UK regulators that it should sell its Trayport software platform less than a year after its acquisition, in order to free up competition in the market for wholesale energy trading.

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The Competition and Markets Authority (CMA) said Ice's ownership of the platform, which underpins around 85% of European utility trading, could lead to fees for execution and clearing being increased and traders being offered worse terms.

The CMA also found that the merger would be likely to result in a loss of competition between Ice and its rivals to launch new products, trading solutions and enter new markets.

All third parties that made submissions to the CMA supported its provisional findings from August, with the majority agreeing that the sale of the Trayport business was the only effective remedy in response.

"Participants in this market have a high level of dependence on Trayport's integrated software offering, alternatives are weak and barriers to entry in this market are high," said Simon Polito, chair of the inquiry.

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