NYSE, Nymex line up to buy stake in MCX

The New York Stock Exchange (NYSE) and the New York Mercantile Exchange (Nymex) are awaiting policy guidelines on foreign direct investment (FDI) in commodity exchanges to pick up minority stake in Multi Commodity Exchange of India (MCX). The guidelines may be announced on Friday.MCX, the largest commodity futures bourse, is promoted by the Mumbai-based Financial Technologies (FTIL).

When contacted an MCX spokesperson said that the exchange has been long awaiting the government policy on foreign investments. While the transaction value under discussion is not clear, sources say that it could be in line with the previous stake sale. Last week, FTIL offloaded around 10% stake in MCX. ICICI, IL&FS and Kotak acquired 3.55%, 5%, 1% stakes, respectively, at an enterprise value of $1.1 billion (around Rs 4,400 crore). With this, FTIL's holding in MCX has come down to 37.5%.

MCX and National Commodity & Derivatives Exchange (NCDEX), which run two leading national commodity bourses, have been pioneers in attracting foreign investors. While Fidelity had picked up 9% in MCX, Goldman Sachs had bought 8% in NCDEX. NCDEX had later sold 7% to Inter-Continental Exchange (ICE) as well.

Read more in The Economic Times article.

Chicago, Nymex may pick up 5% each in MCX

The country’s three leading commodity exchanges are in the final stages of negotiations with their global counterparts for a possible stake sale even as the government is set to announce foreign investment guidelines for comexes in the next few days.

While the Chicago Mercantile Exchange (CME) and the New York Mercantile Exchange (Nymex) are expected to pick up 5 per cent stake each - the maximum to be allowed to a single entity under the policy - in the Multi Commodity Exchange of India (MCX), the US-based Intercontinental Exchange (ICE) is in talks with the National Commodity & Derivatives Exchange (NCDEX).

Exchanges are getting the highest valuations in the global marketplace and sources close to the developments said Nymex may buy stake in MCX based on an enterprise value of $1 billion. The Ahmedabad-based National Multi-Commodity Exchange (NMCE) is also looking at a strategic partner and is in talks with various international and domestic exchanges. The Bombay Stock Exchange is believed to be one of the contenders.

Read more in The Business Standard article.