The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

ICE/NYSE Acquisition: Robson To Depart As Speculation on NYSE Technologies’ Future Heats Up

Ahead of the November 4 completion of InterContinentalExchange’s acquisition of NYSE Euronext, it seems there is significant movement regarding the future of the exchange group’s NYSE Technologies services unit, including the soon-to-be departure of CEO Jon Robson.

Sources say that Robson and COO Terry Roche are both expected to depart, possibly related to fallout from the failure of a plan to spin out NYSE Technologies to financial data and services company Markit.

An NYSE Technologies spokesperson says both executives continue to be employed by the unit. However, sources suggest that Ben Chrnelich, chief financial officer at NYSE Technologies, has taken on the role of interim CEO, with a permanent leader expected to take up the CEO role after the acquisition, probably with a mission to break up and sell off the technology unit in piecemeal fashion.

Robson – who has much experience of mergers and acquisitions in the financial technology space – joined NYSE Technologies as CEO from Thomson Reuters just over a year ago. Roche, a former colleague at Thomson Reuters, and widely seen as Robson’s go-to operations guy, stepped into the COO role as recently as last January.

A breakup/sell off of the NYSE Technologies unit would focus on core offerings, which are organised as three divisions: Liquidity Solutions, Infrastructure Solutions and Content Solutions. Drilling down, core products include the SuperFeed consolidated data feed, the global SFTI and FIX networks, and exchange matching, DMA access and market data distribution technology.

There is also its emerging community cloud platform, Data Fabric middleware and open source OpenMAMA market data access API, which could form key components of a market-led collaborative approach to market data collection and delivery, a concept that Robson has recently pushed.

Indeed, some speculate that Robson (and Roche, and perhaps others from NYSE Technologies) may emerge as a suitor for part of the business. As such, his early departure may be designed to avoid a potential conflict of interest as ICE begins talks to divest of non-core elements.

Other suitors for parts of the NYSE Technologies business could come from the likes of SunGard, First Derivatives, Equinix, CenturyLink/Savvis, Lightower Fiber Networks, Zayo Networks, and – given the broad product portfolio – many others.

For ICE, the acquisition’s primary focus is on NYSE Euronext’s derivatives markets, including NYSE Liffe operations in Europe and the US, as well as a US options business.

It remains to be seen why Markit walked away from a deal. Observers suggest that the NYSE Technologies product line-up would make a good fit with Markit’s, giving the company an enterprise set of technology offerings that would stand it in good stead for taking on the likes of Bloomberg, Thomson Reuters and Interactive Data.

Related content

WEBINAR

Recorded Webinar: Approaches to migrating market data to the cloud to drive agility in trading operations

Market data in the cloud is an attractive proposition in terms of reducing the cost of on premise servers and storage, and moving into a more agile and flexible data delivery environment. It is also well suited to working from home, the fall-back of many financial institutions during lockdowns caused by the coronavirus pandemic. But...

BLOG

Technology Trends in Institutional FX

By Mike O’Hara, A-Team Special Correspondent. Daily trading volumes in global foreign exchange markets topped $1.79 trillion in November 2020, according to CLS, making FX by far the most heavily traded asset class. Most of this trading volume is executed either indirectly through electronic platforms or bilaterally between counterparties, rather than on traditional ‘exchange-type’ venues....

EVENT

Data Management Summit New York City

Now in its 10th year, the Data Management Summit (DMS) in NYC explores the shift to the new world where data is redefining the operating model and firms are seeking to unlock value via data transformation projects for enterprise gain and competitive edge.

GUIDE

Practical Applications of the Global LEI – Client On-Boarding and Beyond

The time for talking is over. The time for action is now. A bit melodramatic, perhaps, but given last month’s official launch of the global legal entity identifier (LEI) standard, practitioners are rolling up their sleeves and getting on with figuring out how to incorporate the new identifier into their customer and entity data infrastructures....