Michael Spencer bids 'good farewell' as Nex edges closer to CME takeover

Michael Spencer sold his voice broking business to Tullett Prebon to create TP ICAP in 2016. He is now selling the rest of his business to CME

Michael Spencer has used his company's last set of results before it is swallowed up by American giant CME to unveil further cost cuts, welcome market volatility, and "bid a good farewell".

Former Conservative party treasurer Mr Spencer, the billionaire entrepreneur who set up the business more than 30 years ago with two friends, said that CME's promise to keep its European base in London was a commitment that mattered in the context of Brexit. 

In Nex's final set of full-year results before it is acquired by the world's largest exchange, the City veteran said that February's "long awaited and much welcomed" jolt of market volatility boosted his business for the year to March.

The firm also cashed in on increased trading activity in emerging markets, a rise in non-bank clients and fresh demand following the implementation of major EU reform Mifid II, with revenues rising 9pc on last year to £591m. 

However the group has deepened its annual cost cutting target by another £10m, adding to the savings already expected from the CME takeover, which could affect 750 jobs. Shareholders approved the £3.9bn acquisition last week with the deal expected to close later this year. 

A trader reacts in the S&P futures pit at the CME group in Chicago, September 13, 2012

Chicago's CME Group has a market valuation of around $54bn, almost five times that of the London Stock Exchange, and has promised to keep its European base in London after the deal completes.  

"As Britain continues its path to leave the EU, commitments like this matter," Mr Spencer said.  

He reiterated his view that Britain was wasting its time on things like the gender pay gap review, which requires all companies with more than 250 staff to publish their gender pay gaps, when it needs to focus on Brexit. 

"I think they’re fundamentally misleading," he said. "I think it is a distraction, unfortunately, but there we are."

He ended an earnings call on Tuesday by saying a "good farewell from me to all of you from a final results call".

CME's boss Terry Duffy told The Telegraph earlier this year that it took almost a year for him to convince Mr Spencer, who sold the voice broking part of his business in 2016, to sell Nex. It was over a dinner in New York that he finally succeeded.  

"French wine and short ribs go a long way in putting big deals together," Mr Duffy said.