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The 2017 Tech 40: Michael Spencer

< The 2017 Tech 408. Michael SpencerChief Executive OfficerNEX GroupLast year: 13

There is a lot of talk, particularly in mature industries like financial services, about the need to reinvent. Michael Spencer has done it. At the end of last year, he completed the £1.3 billion ($1.67 billion) sale of the voice brokerage business of ICAP, the London-based interdealer firm he founded in 1986, to Tullett Prebon. The part of ICAP that he kept, NEX Group, is "not an interdealer broker," he stresses, but "a fintech company with world-class assets." NEX Group consists of NEX Markets, the electronic trading unit formerly called EBS BrokerTec; and NEX Optimisation, which includes Traiana, TriOptima, and other post-trade risk and information services offerings. With 1,800 employees worldwide, NEX is hardly the typical fintech start-up, and it has been quick to produce results: Revenue from continuing operations increased 18 percent for the year ended March 31, to £543 million ($695 million), with the operating profit margin slipping 3 percentage points, to 27 percent. NEX's share price has climbed from, £4.97 on January 3 to £6.46 on July 13. "The results were well received, and in fact the whole transformation to NEX has been well received, and now it is important to look forward," says Spencer, 62, who describes the process of letting ICAP go as "emotionally and commercially difficult." A sign of how different NEX culture is: "We have hackathons," Spencer says. "I didn't know that was a word five years ago." Whereas the old ICAP was known for its sponsorship of the record-holding racing yacht Leopard, NEX has signed on as global sponsor of the XBlades — now NEXXBlades — drone-racing team. Spencer says drone technology is "exciting and cutting-edge" and will tie in nicely with the "slightly futuristic" connotation of the NEX brand name. NEX does tap into a cutting-edge start-up pipeline via the strategic investment portfolio of NEX Optimisation's Euclid Opportunities. Two Euclid holdings, regulatory reporting company Abide Financial and ENSO Financial Analytics, were acquired by NEX (then ICAP) last year. The current portfolio includes blockchain developers Axoni and Digital Asset Holdings, financial software desktop innovator OpenFin, and financial research management platform RSRCHXchange.


 The 2017 Tech 40Click below to view profiles
1. Adena FriedmanNASDAQ2. Catherine BessantBank of
America Corp.3. Robert GoldsteinBlackRock4. Jeffrey SprecherIntercontinental Exchange5. Lance UgglaIHS Markit
6. Shawn Edwards & Vlad KliatchkoBloomberg7. David CraigThomson Reuters8. Michael SpencerNEX Group9. Don CallahanCitigroup10. Elisha WieselGoldman Sachs Group
11. Michael BodsonDepository Trust & Clearing Corp.12. Terrence DuffyCME Group13. Charles LiHong Kong Exchanges and Clearing14. Sean BelkaFidelity Investments15. Chris ConcannonCBOE Holdings
16. Guy ChiarelloFirst Data Corp.17. Steven LieblichCitadel18. David RutterR3CEV19. Blythe MastersDigital Asset Holdings20. Alfred SpectorTwo Sigma Investments
21. Neil KatzD.E. Shaw Group22. Lee OleskyTradeweb Markets23. Richard McVeyMarketAxess Holdings24. David GledhillDBS Bank25. Seth MerrinLiquidnet Holdings
26. Antoine ShagouryState Street Corp.27. Peter Brown &
Robert Mercer
Renaissance Technologies28. Lou EcclestonTMX Group29. Peter CherecwichNorthern Trust Corp.30. Mike ChinnS&P Global Market Intelligence
31. Chris CorradoLondon Stock Exchange Group32. Neal PawarAQR Capital Management33. Gary NorcrossFidelity National Information Services34. Steven O'HanlonNumerix35. Sebastián CeriaAxioma
36. Brian ConlonFirst Derivatives and Kx Systems37. Tyler KimMaplesFS38. Michael CooperBT Radianz39. Robert SchifelliteBroadridge Financial Solutions40. Jim MinnickeVestment