NYSE shops overseas
NYSE Euronext bolstered its presence in the Middle East and India with its acquisition of 25% of the Doha Securities Market (DSM) in Qatar and 5% equity interest in India’s Multi Commodity Exchange (MCX). The DSM stake purchase for $250 million represents the largest investment ever made by NYSE in a foreign exchange. Doha will become NYSE’s business hub in the Middle East. “It is a great privilege to align NYSE Euronext with Qatar and Doha’s financial marketplace, whose role is increasingly important in the Gulf region and globally,” said NYSE Euronext CEO Duncan Niederauer in a statement. NYSE’s 5% equity position in MCX is the maximum interest permitted by a single foreign investor. “Asia-Pacific is a strong, growing region for global capital markets and we are very pleased to formalize our intent to be a part of that growth,” Lawrence Leibowitz, NYSE Euronext Group EVP said in a statement.
OptionsXpress buys Open E Cry
OptionsXpress Holdings Inc. has agreed to acquire Open E Cry LLC, for $13 million in cash, $5 million in stock, plus additional consideration. The deal is expected to close on July 1, 2008. Last year, Open E Cry generated approximately $8 million in revenue and $1 million in pretax income in 2007. Year-to-date, revenues have grown more than 100% from the same period last year.
CBOE/CBOT ERP vote postponed
The Chicago Board Options Exchange (CBOE) postponed the July 17 membership vote to approve a proposed exercise right settlement reached with former Chicago Board of Trade (CBOT) members. The agreement in principle would give former CBOT members an 18% equity stake in the options exchange and $300 million in cash. The vote has not been rescheduled.
Ready, SET…
The Stock Exchange of Thailand’s (SET) board of governors approved in principal to demutualize by 2011; by which time it will have achieved its five-year strategic targets. In the first phase of the strategy, SET will focus on strengthening the domestic capital market by deepening the market’s significance in the overall economy. SET anticipates that the requisite legal framework will be in place by 2009.
Commodity (exchanges) are hot
Two new Asian commodities exchanges are preparing to launch within the next year – one run from India and based in Singapore, and the other run from London but based in Hong Kong. The Singapore Mercantile Exchange (SMX) is awaiting approval from Singapore regulators and is a wholly-owned subsidiary of Financial Technologies India (FTIL), which operates the Multi-Commodity Exchange of India (MCX), in which FTIL has an ownership stake. FTIL also has a stake in the Dubai Gold and Commodity Exchange (DGCX) and is in the process of setting up a pan-African exchange tentatively called MCX Africa. The other project, the Hong Kong Mercantile Exchange (HKMEx), is also awaiting regulatory approval and has financial backing from several Western investment banks. Nasdaq OMX will provide the technology, and trades will be cleared and settled via London-based LCH.Clearnet. Both projects are slated to launch in early 2009. SMX plans to offer metals, currencies, carbon credits and agricultural products, while HKMEx will launch with fuel oil contract.
