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: Market data management, licensing and administration in the post-Covid environment

Market data administration has always been a challenge. For many firms, keeping tabs on permissioning and entitlements, compliance with licensing agreements, and reconciling all that with increasingly complex invoices requires a significant dedicated resource with a clear understanding of the issues involved. As if that weren’t enough, things got more challenging for these teams in...

BLOG

VendEx Launches VSource Vendor Services Directory for the Market Data Industry

San Francisco-based market data management specialist VendEx Solutions has launched VSource, an interactive digital catalogue of market data vendors, products and services, containing details of more than 3,700 active vendors at launch. VSource uses a proprietary alphanumeric taxonomy, the VID (patent pending), to capture product and service information at a granular level, enabling firms to...

EVENT

RegTech Summit New York City

Now in its 5th year, the RegTech Summit in NYC explores how the North American financial services industry can leverage technology to drive innovation, cut costs and support regulatory change.

GUIDE

Trading Regulations Handbook 2021

In these unprecedented times, a carefully crafted trading infrastructure is crucial for capital markets participants. Yet, the impact of trading regulations on infrastructure can be difficult to manage. The Trading Regulations Handbook 2021 can help. It provides all the essentials you need to know about regulations impacting trading operations, data and technology. A-Team Group’s Trading...