U.K. Competition Watchdog Says ICE Must Sell Trayport

The U.K.'s antitrust watchdog ruled Monday that Intercontinental Exchange Inc. must sell Trayport, a provider of energy-trading technology, dealing a blow to the U.S. exchange operator's efforts to deepen its presence in European markets.

ICE acquired Trayport in late 2015 for $650 million. The U.K.'s Competition and Markets Authority, which had been reviewing the deal since January, said that ICE's ownership of Trayport would increase fees for traders and reduce the ability of rivals to launch new products.

"We believe that the only effective way to preserve competition is to require ICE to sell Trayport," Simon Polito, chair of the CMA's inquiry, said in a statement.

A spokesman for ICE said in a statement that the company was "disappointed" and was considering appealing the decision.

Trayport licenses its software for use by brokers. Its technology underpins about 85% of European utilities trading, according to the CMA.

ICE bought Trayport from brokerage BGC Partners in December, saying it would use the deal to provide new services in over-the-counter trading in European natural gas, power and coal.

Write to Alexander Osipovich at alexander.osipovich@wsj.com

(END) Dow Jones Newswires

October 17, 2016 13:35 ET (17:35 GMT)

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