LONDON, April 27 (Reuters) - Britain's competition watchdog said it will open an in-depth investigation into Intercontinental Exchange's takeover of commodities software house Trayport unless the exchange can offer undertakings.
The Competition and Markets Authority (CMA) said it was concerned that ICE could use its ownership of Trayport's software to raise prices and/or reduce the quality of its service to rival exchanges to divert its rivals trades to ICE's own exchange and clearing house.
"Given these concerns and their potential effect on those providers that currently compete with ICE, along with extensive third party concerns, we think the merger warrants an in-depth investigation unless ICE can offer suitable undertakings," CME executive director of markets and mergers, Andrea Coscelli, said in a statement.
ICE's $650 million takeover of Trayport was completed in December.
Reporting by Huw Jones, editing by David Evans