|
|
Mumbai, 15 February, 2008 - NYSE Euronext (NYX), the world’s
leading and most diverse financial market group, today announced
that it has signed a binding term sheet to acquire a 5% equity
position in the Multi Commodity Exchange (MCX), India’s leading
commodity exchange in terms of trading volumes, subject to certain
conditions. The 5% equity investment is the maximum equity interest
permitted by foreign investors in derivative exchanges under current
Indian law. Closing of the transaction is expected to take place
during the first half of 2008, subject to all relevant regulatory
approvals.
“We believe that our investment in MCX will produce new business
opportunities for NYSE Euronext in the commodities sector and
deliver value to NYSE Euronext shareholders,” said Duncan L.
Niederauer, NYSE Euronext Chief Executive Officer. “This transaction
underscores our long-standing commitment to India and is consistent
with our strategic business goal of aligning NYSE Euronext with
partners globally and diversifying our product portfolio.”
Mr. Jignesh Shah, Managing Director and Chief Executive Officer of
MCX added, “The milestone bears testament to the quality of the
institution we have built where one of the best in India and the
world converge. It is a statement on India’s economic standing and
we are proud to be part of it.”
In addition to NYSE Euronext, other shareholders in MCX include:
State Bank of India and its associates (SBI), National Bank for
Agriculture and Rural Development (NABARD), National Stock Exchange
of India Ltd. (NSE), SBI Life Insurance Co. Ltd., Bank of India (BoI)
, Bank of Baroda ( BoB ), Union Bank of India, Corporation Bank,
Canara Bank, HDFC Bank, Fid Fund (Mauritius) Ltd. - an affiliate of
Fidelity International, ICICI Ventures, IL&FS, Kotak group,
Citigroup, Merrill Lynch and Financial Technologies (India) Ltd.
Currently, there are 14 corporate listings from India on NYSE
Euronext markets, 12 on the New York Stock Exchange and two on
Euronext, whose combined total global market capitalization exceeds
$110 billion.
About NYSE Euronext
NYSE Euronext (NYX) operates the world’s leading and most liquid
exchange group, and seeks to provide the highest levels of quality,
customer choice and innovation. Its family of exchanges, located in
six countries, include the New York Stock Exchange, the world's
largest cash equities market; Euronext, the Eurozone's largest cash
equities market; Liffe, Europe's leading derivatives exchange by
value of trading; and NYSE Arca Options, one of the fastest growing
U.S. options trading platforms. NYSE Euronext offers a diverse array
of financial products and services for issuers, investors and
financial institutions in cash equities, options and derivatives,
ETFs, bonds, market data, and commercial technology solutions. NYSE
Euronext's nearly 4,000 listed companies represent a combined $30.5
trillion/€20.9 trillion in total global market capitalization (as of
Dec. 31, 2007), more than four times that of any other exchange
group. NYSE Euronext's equity exchanges transact an average daily
trading value of approximately $141 billion/€103 billion (as of Dec.
31, 2007), which represents more than one-third of the worlds cash
equities trading. NYSE Euronext is part of the S&P 500 index and the
only exchange operator in the S&P 100 index. For more information
about NYSE Euronext, please visit
www.nyx.com.
About MCX
Headquartered in the financial capital of India, Mumbai, MCX (www.mcxindia.com)
is a demutualised nationwide electronic multi commodity futures
exchange set up by Financial Technologies with permanent recognition
from Government of India for facilitating online trading, clearing &
settlement operations for futures market across the country. The
exchange started operations in November 2003 and currently has over
70% market share for quarter ended December 31, 2007 of the total
commodity exchange industry in the country. MCX is the largest
silver exchange, the second largest natural gas exchange, the third
largest gold exchange, the third largest crude oil exchange and the
third largest copper exchange in terms of the number of contracts
traded for each of these commodities, for the period from January 1,
2007 to December 31, 2007. Apart from being accredited with ISO
9001:2000 for quality management, it has also achieved ISO
27001:2005 certification, the global benchmark for information
security management systems.
MCX offers futures trading in 55 commodities as on December 31,
2007, defined in terms of the type of contracts offered, from
various market segments including bullion, energy, ferrous and
non-ferrous metals, oils and oil seeds, cereals, pulses,
plantations, spices, plastics and fibres. The exchange has forged
eleven strategic alliances across the world, including with Tokyo
Commodity Exchange, Chicago Climate Exchange, London Metal Exchange,
New York Mercantile Exchange, New York Board of Trade and Bursa
Malaysia Derivatives, Berhad.
Financial Technologies India Ltd, a leading provider of transaction
automation technologies for Equities, Derivatives, Forex and
Commodity markets, is the majority shareholder of MCX. Other key
stakeholders include Fidelity International, State Bank of India &
its subsidiaries, National Stock Exchange (NSE) and National Bank
for Agriculture & Rural Development (NABARD).
MCX is India’s No. 1 commodity exchange. Source: FMC website (www.fmc.gov.in)
based on turnover in terms of value for FY 07.
Disclaimer: MCX is planning, subject to
receipt of requisite approvals, market conditions and other
considerations, a public issue of its equity shares and to file a
Draft Red Herring Prospectus with SEBI.
MCX Safe harbor statement:
Certain statements in this release that are
not historical facts may be forward-looking in nature. Although MCX
believes that expectations reflected in such forward-looking
statements are based on reasonable assumptions, it has no assurance
that its expectations will be attained. These statements involve
risks and uncertainties like government actions, local political or
economic developments, technological risks, and many other factors
that could cause our actual results to differ materially from those
contemplated in such forward-looking statements. MCX does not
undertake responsibility to update any forward-looking statement
that may be made from time to time by or on behalf of MCX.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking
statements, including forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements include, but are not limited to,
statements concerning NYSE Euronext's plans, objectives,
expectations and intentions and other statements that are not
historical or current facts. Forward-looking statements are based on
NYSE Euronext's current expectations and involve risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied in such forward-looking statements.
Factors that could cause NYSE Euronext's results to differ
materially from current expectations include, but are not limited
to: NYSE Euronext's ability to implement its strategic initiatives,
economic, political and market conditions and fluctuations,
government and industry regulation, interest rate risk and U.S. and
global competition, and other factors detailed in NYSE Euronext’s
reference document for 2006 ("document de référence") filed with the
French Autorité des Marchés Financiers (Registered on June 6, 2007
under No. R.07-0089), 2006 Annual Report on Form 10-K, as amended,
and other periodic reports filed with the U.S. Securities and
Exchange Commission or the French Autorité des Marchés Financiers.
In addition, these statements are based on a number of assumptions
that are subject to change. Accordingly, actual results may be
materially higher or lower than those projected. The inclusion of
such projections herein should not be regarded as a representation
by NYSE Euronext that the projections will prove to be correct. This
press release speaks only as of this date. NYSE Euronext disclaims
any duty to update the information herein.
|
|
|
|
| |
|
 |
|
|
