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Proposed Acquisition by Nasdaq Technology AB of Cinnober Financial Technology AB
27 November 2018
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Reference: | CCCS 400/010/18 |
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Notifying Parties: | Nasdaq Technology AB Cinnober Financial Technology AB |
Notifying Date: | 15 October 2018 |
Summary of transaction: | (i) the names of the merger parties;
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(ii) a description of the transaction; Acquisition of 100% of the issued shares in CINN by Nasdaq Technology AB, which will result in Nasdaq and CINN ceasing to be distinct. | |
(iii) a description of the business activities of the merger parties worldwide and in Singapore; Nasdaq Technology AB’s parent company, Nasdaq Inc., and CINN, supply information technology (“IT”) services for market technology solutions, including trading, clearing, risk management and market surveillance software, to financial institutions, clearinghouses and exchanges. Although the same products are used regardless of the commodity, these can be broken up into cash equities, derivatives (futures and options), fixed income, commodities, foreign exchange and digital currencies. Both companies supply market technology solutions and other services to support trading and post-trade services to banks, brokers and marketplaces, to facilitate the trading of a full range of financial instruments. | |
(iv) a description of the overlapping goods or services, including brand names; The overlapping products are defined as information technology services for market technology solutions, including trading, clearing, risk management and market surveillance software. The following brand names are used by the Parties in Singapore:
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(v) a description of substitute goods or services; On the demand-side, there is no substitutability between the different segments of market technology solutions identified above. A customer requiring a trading solution would not switch to a clearing or surveillance solution and vice versa. On the supply side, there is substitutability with regard to the provision of market technology solutions. This is due in large part because the underlying IT operating systems applicable to trading, clearing, surveillance and risk management software is the same. This provides the basis for a supplier in one segment to develop and market products for another segment or, as is the case for CINN with respect to surveillance products, to add a niche third party supplier’s solution to the supplier’s overall offering. Many suppliers seek to offer a full suite of exchange trading solutions, which add to their underlying platform / Application Programming Interface. | |
(vi) the applicant’s views on:
The Transaction will not have any anti-competitive effects, because:
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Decision: | The proposed merger, if carried into effect, will not infringe the Section 54 prohibition. |
Decision Date: | 27 November 2018. Read Media Release. Read the Grounds of Decision. |