Markets

Michael Spencer hails CME-Nex deal as important post-Brexit symbol

Michael Spencer, the founder of electronic trading software firm Nex Group, hailed the takeover of his business by the US's CME Group as an important overseas commitment to a London facing Brexit today.

The deal "will bring huge benefits to our clients, the market, and to the City of London through CME's commitment to maintain London as its European headquarters. As Britain continues its path to leave the EU, commitments like this matter", the former Tory party treasurer said in his results announcement earlier.

Giving his final results statement before Nex is acquired by CME, the world's largest futures exchange, Spencer added that he welcomed increased market volatility which was helping to boost his business.

Read more: World's largest futures exchange CME Group agrees deal to acquire Michael Spencers Nex for £3.9bn

Nex's profit before before tax rose two per cent over the year to £125m, and the group announced it had cut £10m more of costs through slimming down its infrastructure and "redesigning operating models" across its divisions.

It also said that it was "in discussions" with a number of financial institutions over further funding for Nex Exchange, its listing venue for small and mid-sized businesses.

Revenue at Nex's regulatory reporting branch rocketed by 300 per cent to £9m, as new rules such as Mifid caused traders to improve their reporting.

Overall revenue for the group rose by nine per cent to £591m.

Read more: Nex and CME's advisers to land bumper £110m payout for negotiating £3.9bn takeover

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