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ION’s completed purchase of Broadway Technology raises UK competition concerns

Christian Fernsby ▼ | July 7, 2020
The CMA has found that ION’s completed purchase of Broadway Technology raises competition concerns in the supply of electronic trading systems.
Broadway Technology
ION   Broadway Technology
Both companies provide specialist trading systems to financial organisations, such as banks, that allows the trading of foreign exchange (FX) and fixed income securities (FI) such as government bonds.

Topics: ION Broadway Technology

The Competition and Markets Authority (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.

ION must now address the CMA’s concerns within 5 working days. If they are unable to do so, the deal will be referred for an in-depth Phase 2 investigation.