Financial Technologies India Ltd (FTIL), which is embroiled in the NSEL payment crisis, is selling its Singapore Mercantile Exchange (SMX) unit to Intercontinental Exchange Group (ICE) for $150 million.
Under the terms of the agreement, which has been approved by the boards of directors of both companies, ICE will acquire 100 per cent of SMX, including the SMX Clearing Corporation (SMXCC), a wholly owned subsidiary of SMX and the clearing house for all SMX trades. The transaction is expected to close by the end of 2013, subject to applicable regulatory approvals and closing conditions.
SMX operates futures markets in Singapore across metals, currencies, energy and agricultural commodities. The exchange retains licences to operate as both an approved exchange and approved clearing house, providing ICE with exchange and clearing infrastructure in Asia for the first time.
David Goone, chief strategy officer, ICE, said: “SMX will continue to be based in Singapore and operate as a separate recognised body with its own independent board of directors, and ICE will evaluate the product and clearing strategy of SMX to ensure the offering best meets market participants’ needs in the region. SMX members will benefit from ICE’s world class technology and trading platform capabilities, as well as its established capabilities in product innovation.”
Jignesh Shah, CMD, FTIL said, ‘SMX acquisition by ICE is a testimony of India’s technology excellence and domain knowledge in developing and operating world class financial markets and institutions that are at par with global standards in all respects.”
Shah further said that his “trust in the board and management of the SMX team has been vindicated and they have done an exemplary job of executing on his vision and making India and Singapore proud by developing SMX into a globally recognised institution”.