CME Group in talks with NEX on takeover

LONDON: Britain´s NEX Group Plc has received a preliminary takeover approach from U.S.-based exchange operator CME Group, in a move to create a cross-border trading powerhouse.

Talks with CME Group - one of the world´s biggest exchange groups that owns the Chicago Board of Trade (CBOT) and the Chicago Mercantile Exchange - are at an early stage, NEX Group said in a statement .

NEX, a financial technology company that matches buyers and sellers of bonds, swaps and currencies, said there was no certainty that an offer would be made.

Scooping up NEX would mark another attempt by a foreign exchange operator to buy into a British business to straddle on and off exchange products, cash and futures markets, and clearing.

Known as ICAP until the sale of its voice broking business to TP ICAP in 2016, NEX was founded by Michael Spencer, its chief executive and a high-profile figure in London´s financial industry. Its shares have surged more than 40 percent over the last two years as market volatility in the wake of political surprises, such as U.S. President Donald Trump´s victory and Britain´s decision to leave the European Union, fuelled trading on its platforms.