FT picks up major stake in African Bourse

The Financial Technologies India (FTIL) group has inked a deal to acquire 60 per cent stake in Botswana-based Bourse Africa. The latter has been licensed by the Botswana government to set-up a spot and/or derivative multi-asset exchange for trading in commodities, currencies, bonds and diamonds.The remaining equity in Bourse Africa will be held by other African financial institutions, banks, global multi-lateral developmental ventures, exchanges and other strategic investors.

The exchange will have a pan-African presence through the hub-and-spoke model that will connect all major countries in Africa. Operating out of Botswana, Bourse Africa is accredited to the Botswana International Financial Services Centre (IFSC).Other financial services ecosystems that are planned to be set up include a Clearing Corporation, Warehouse Receipt Corporation and Depository services.

Read more in The Business Standard article.

Merrill Lynch, Citigroup buy 10% in MCX

Global financial services firms Merrill Lynch and Citigroup have picked up five per cent stake each in the country's biggest commodity exchange MCX for a total of about Rs 480 crore.

Financial Technologies (India) Ltd, the parent company of Multi Commodity Exchange of India, sold the stake. FTIL has also entered into agreements to offload three per cent and two per cent stake to two foreign funds - Passport India Investment (Mauritius) and GLG Financials Fund, respectively.The transactions put the enterprise value of MCX at over USD 1.1 billion (Rs 4,400 crore).

FTIL will get about Rs 720 crore from selling 15 per cent stake in MCX, an exchange official said. With the sale, FTIL's shareholding in MCX will come down to 49 per cent, he added.

Read more in The Economic Times article.

FTto set up corp bond bourse

Financial Technologies, which is also the promoter of commodities derivatives exchange MCX, has submitted the proposal to the Securities and Exchange Board of India,plans to set up an exchange for illiquid corporate bonds.The company recently got the government approval to set up an energy exchange

The move is a part of Financial Technologies strategy to take advantage of opportunities in the business of running exchanges. The company also has plans to start an exchange for trading in shares of small and medium enterprises.

The company, which also holds 49 per cent stake in the Dubai Gold and Commodities Exchange, recently received the go-ahead from the CentralElectricity Regulatory Commission to set up Indian Energy Exchange. The proposal submitted by Financial Technologies envisages a demutualised exchange, wherein strategic and financial investors would hold equity stakes. An official spokesperson of Financial Technologies declined to comment.

According to the Securities and Exchange Board of India (Sebi) data, trading in corporate bonds, including over the counter trades and trading through exchanges, stood at Rs 53,664.26 crore between January and August.

In this month (till September 20), the trading stood at Rs 532.66 crore. Market sources said in the absence of primary market reforms, actual trading in bonds would not take place and even a separate corporate bond exchange is set up, it would only diversify the present trading.

Read more in The Business Standard article.

FT, PTC India to launch power exchange

Financial Technologies India and PTC India have received approval from the central electricity regulatory commission to set up India's first national level power exchange, Indian Energy Exchange Ltd for trading electricity.Indian Energy Exchange will be a pan-India neutral and transparent electronic demutualized exchange for efficient price discovery in the electricity market.

PTC India has consented to take 26 per cent stake and corporates like Tata Power, Reliance Energy, Rural Electrification Corporation, Adani Enterprises and IDEC will also hold stake in the consortium. The company will invite strategic partners to join the power exchange.

The power exchange will benefit market participants such as the generators, distribution licensees, open access users, trading licensees, industrial consumers, system operators and bankers in many ways.Currently, short term trading constitutes only 3 per cent of the total energy market as against over 15 per cent globally.

Read more in The Economic Times article.

Fin Tech buys 1% NSE stake for Rs 125cr

Software firm Financial Technologies India has acquired 4,50,000 shares (1%) stake in National Stock Exchange from ICICI Bank for Rs 125 crore.According to a release issued by Financial Technologies to the BSE today, the company joins other NSE shareholders including the New York Stock Exchange (NSE), Goldman Sachs, ICICI, SBI, IDBI, LIC and various public sector banks.

NYSE and three financial investors — General Atlantic, Goldman Sachs and Softbank Asian Infrastructure Fund — had picked up 5% stake each in NSE for $490 million (Rs 2,205 crore) in January this year.That had pegged the upper-end valuation of the country’s largest bourse at $2.5 billion (Rs 11,250 crore). NSE had recorded a net profit of Rs 191 crore on a revenue of Rs 472 crore for the financial year ended March 31, 2006.
With the current FT-ICICI Bank deal, the valuation of NSE has moved up to Rs 12,500 crore - an increase of around 11% in seven months.

FT, Liberty in race to buy DSE stake

Financial Technologies India Ltd, media house TV18 and Liberty Shoes are among the seven bidders interested in buying a stake in Delhi Stock Exchange as the defunct bourse gets ready to restart operations.

"So far we have received seven bids including Financial Technologies for 51 per cent brokers' stake in the exchange... trading can start within four months from now," B B Sahny, DSE Director and chairman of the de-mutualisation committee, said.

Two foreign entities Kuwait-based Noor Investments Ltd and US-based Horizon Assets Management Company, domestic footwear manufacturer Liberty Shoes and a group company of TV18 have also bid for picking up stake in the bourse.Few others are also expected to join the board, he said, adding, "two Asian exchanges are also in talks with us".

Sahny said the bids have been received at an enterprise value in between Rs 400 crore-500 crore. At this value, the share price comes about Rs 130-165 apiece, he added.

The de-mutualisation process would be completed by the August 28 deadline set by market regulator SEBI, he said, adding, it will take another 100 days to resume operations.

Financial Tech launches 'Tickerplant'

With a view to provide exchange feeds for Indian and international equities, commodities, forex and precious market rates and news, Financial Technologies India Ltd (FT) has launched a group company — Tickerplant.

Tickerplant, aims to create a digital infrastructure to disseminate real-time, low-latency ticker feed to over 100 market segments across the globe over a period of time, Financial Technologies informed the Bombay Stock Exchange.

The goal is to level the playing field for the smallest Indian investors by bringing 'Wall Street to the Man on the Street'.

Financial Technology sells 1% in Dubai bourse for $12.5 mn

The Dubai Multi Commodities Centre (DMCC) has bought an additional 1 per cent stake in the Dubai Gold and Commodities Exchange (DGCX) from its partner, the Financial Technologies Group, for $12.5 million.

The deal values DGCX, which started operations one and a half years ago, at a whopping $1.25 billion.

The FT Group will now be left with a 49 per cent stake in DGCX. When contacted, FT Group executives declined comment on whether the price paid for the 1 per cent stake reflected change of control and therefore included a control premium.

Market sources say the high valuation for a start-up like DGCX compares well with the valuations of the National Stock Exchange and the Bombay Stock Exchange at $2.3 billion and $910 million, respectively.

DGCX is an electronic futures and options exchange which utilises trading, clearing and settlement technology developed by the FT Group.

Read more in The Business Standard article.