ICE snaps up two S&P securities pricing units

Intercontinental Exchange (ICE), breaking for a moment from its hijacking of the merger between the London Stock Exchange and Deutsche Borse, has agreed the acquisition of two S&P Global Market Intelligence businesses from McGraw Hill Financial.

The purchase, for an undisclosed amount, will be settled in ICE's choice of either cash or stock.

The two units are Standard & Poor’s Securities Evaluations (SPSE), which specialises in fixed income evaluated pricing, and Credit Market Analysis, a provider of independent data for the over-the-counter (OTC) markets.

ICE chairman and CEO Jeffrey Sprecher said the additions will enable it to offer customers new data and valuation services.

"With rising demand for independent data in the global fixed income and credit markets, this transaction will support the need for innovation and increased risk management and valuation services,” Sprecher said.

"We look forward to serving customers in these markets as they become more transparent, and as pricing becomes more accessible.”

S&P said it was selling the units as management felt the group did "not have critical mass in the area of securities pricing".

Earlier on Tuesday, Intercontinental Exchange confirmed it was considering making a bid for the London Stock Exchange to rival Deutsche Boerse’s proposed merger.

ICE, which owns the New York Stock Exchange, said no approach has been made yet.

“There can be no certainty that any offer will be made, nor as to the terms on which any offer will be made. A further announcement will be made as appropriate," it said.

LSE confirmed it had not received a proposal from ICE. “There can be no certainty that an offer will be made or as to the terms on which any offer might be made,” the company said on Tuesday.