Michael Spencer bows out of Nex with Brexit warning for politicians

Michael Spencer is bowing out as chief executive of Nex Group, the technology group he is selling to America’s CME, with strong trading figures and a swipe at UK politicians.

He says the City and the UK can do well post-Brexit, but slammed the lack of attention the financial services sector is getting and said rival nations will “plunder” London for business.

In the year to March, Nex saw revenues up £50 million to £591 million. Profits edged up £3 million to £125 million. It is being sold to derivatives exchange CME for £3.9 billion, a deal that nets Spencer £670 million. He said the “obsession” in Brexit discussions with the customs union, the Northern Ireland border and manufacturing means the political effort is skewed in the wrong direction. “If you were being courteous you’d say this was disappointing, if you were being hard you’d say it was alarming,” he added.

He said the negative sentiment around bankers had been unfairly extended to insurers and asset managers. “There is the trashing of an entire industry based around the conduct of a small number of individuals,” he said.

CME has committed to Nex’s London base, and Spencer said this was “extremely important”. Nex has found £10 million more in cost cuts to boost returns, and welcomed renewed volatility in markets. Chicago-based CME will become the biggest player in US bonds once it completes the Nex deal. Spencer, a City figure since 1998 when he first took ICAP public, will stay with the group as a special adviser for at least two years.