ICE to buy Singapore Mercantile Exchange
The acquisition will add to IntercontinentalExchange Group's current network of markets and clearing houses in the U.S., Canada, Brazil, the U.K. and continental Europe.
Under the terms of the agreement, which has been approved by the boards of directors of both companies, ICE will acquire 100% of Singapore Mercantile Exchange (SMX). This includes 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.
Upon completion of the transaction, ICE anticipates there will be a period of business transition in which ICE will implement technology changes and, in consultation with market participants, clearing members, and regulators, will evaluate the product and clearing strategy of SMX to ensure the offering meets market participants' needs in the region.
SMX is a wholly owned subsidiary of Financial Technologies (India) Ltd (FTIL) and is regulated by the Monetary Authority of Singapore (MAS). ■