The Competition and Markets Authority (CMA) has found that ION’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 allow the trading of foreign exchange (FX) and fixed income securities (FI) such as government bonds.
The CMA has concerns relating to the supply of FI electronic trading systems. Based on evidence from the companies’ 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 CMA’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, “We’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 they’re buying one of their closest competitors.”
Full Content: Gov UK
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