NYSE Euronext red-flagged pacts between MCX and Financial Technologies in 2007

May 12 2014, 10:56 IST
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NYSE Euronext, through its affiliate Euronext NV, had picked up roughly a 5% stake in MCX in 2008 for Rs 240 crore. NYSE Euronext, through its affiliate Euronext NV, had picked up roughly a 5% stake in MCX in 2008 for Rs 240 crore.
SummaryInterestingly, NYSE Euronext affiliate Euronext NV had picked up roughly a 5% stake in MCX in 2008.

nature of the concerns raised by them were not available with MCX,” the report said.

Moreover, there was no underlying basis of commercial clauses agreed by MCX while offering contracts to FTIL, and in many cases, no competitive bidding was performed, the audit said.

Some of the conditions would require the MCX to pay charges for the remaining term of such technical services agreement, should it wish to terminate them and that, too, at the discretion of FTIL, it said.

Some other pacts, including those on procurement of exchange trading and matching systems (February 2003), risk management software (2005) and data warehousing software (October 2006) have a clause restricting the right of MCX to use services of others even if it’s not satisfied with the performance of the software provided by FTIL, according to the audit.

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