After successfully operating a commodity exchange dealing primarily in gold in Dubai, Financial Technologies is in talks with the Singapore government to set up a bourse in the south-east Asian country.
“The exchange will be set up in partnership with the Singapore government,” a source close to the development said. In the joint venture, Financial Technology, which is the main promoter of India’s largest commodity exchange MCX, is likely to have a 49% stake. The Singapore Exchange would be modelled on the lines of Dubai Gold and Commodities Exchange (DGCX), he added.
Our bureau adds: In India, Financial Technologies is the only company that has set up commodity exchange called DGCX in Dubai in the Middle East region and also in process to set up another exchange (GBOT) in Mauritius to cater the African region. Now, the group is planning to enter the South East Asian market through the proposed Singapore exchange. There are two commodity exchanges in Singapore – Joint Asian Derivatives Exchange and Singapore Commodity Exchange, which trades in rubber and crude palm oil. There are reports that Financial Technologies are in talks with the Monetary Authority of Singapore to set up a commodity exchange in Singapore. It is expected to be ready for launch in the next few days.
In India, FT group promoted MCX, a demutualised national commodity exchange. The exchange started its operations in November 2003 and at present, it is the top commodity exchange in the country with 70% market share.
The exchange ranks among the top three bullion, energy and copper exchanges in the world in terms of contracts traded.