Global crisis delays MCX overseas expansion plan

Mumbai | Updated: Mar 31 2009, 06:01am hrs
Turmoil in financial markets seems to be affecting the global expansion plans of Financial Technologies, promoter of top domestic commodity bourse MCX, and trading at its overseas exchange ventures in Singapore, Mauritius and Bahrain may get delayed by about a year.

Singapore Mercantile Exchange (SMX) and Global Board of Trade (GBOT), the two overseas exchanges set up by MCX group in Singapore and Mauritius respectively, were expected to commence trading in first half of 2009, but now are expected to start operations in the first half of next year.

Another two overseas bourses, Bourse Africa in Botswana and BFX in Bahrain, would start in second half of 2010.

When asked whether FTIL has postponed the commencement of trading at SMX and GBOT, a group spokesperson did not give a direct reply and said that as per company policy, we dont respond to day to day market news and rumors.

The spokesperson also did not reply to queries related to the progress on registration of members at these bourses and whether a slow response was responsible for the postponement.

However, domestic brokerage firm Edelweiss Securities Ltd said in a report, based on comments from FTIL management at its recently held 'Edelweiss India Conference 2009' that trading is expected to commence at SMX and GBOT in the first half of 2010.

Besides, another overseas venture of FTIL, Dubai Gold & Commodities Exchange (DGCX) is also witnessing lower scale-up as trading activity among majority of its 210 members, which are primarily institutions, has declined, Edelweiss said.

The report also noted that FTIL's another overseas venture, Bourse Africa in Botswana, and BFX in Bahrain would commence trading in second half of 2010. Earlier this year, FTIL said that it has received the approval from Central Bank of Bahrain to set up Bahrain Financial Exchange (BFX), a global financial exchange to trade in multi asset products. BFX was previously expected to start trading in first quarter of 2010.

PTI