Financial Technologies India Ltd (FTIL), the promoters of Multi-Commodity Exchange (MCX), has acquired a 60% stake in Botswana-based bourse Africa. The Botswana government licensed bourse will set up a spot and/or derivative multi-asset exchange for trading in commodities, currencies, bonds and diamonds. FTIL has been increasingly consolidating its position in exchanges acrosss the world, and this acquisition takes the number of exchange ventures being promoted by FTIL to ten.
The rest of the stake in Bourse Africa, also the first pan-African exchange, will be held by African financial institutions, banks, global multi-lateral developmental ventures, exchanges and other strategic investors.
The exchange will have a pan-Africa presence through a hub and spoke model that will connect all the major countries in Africa. Operating out of Botswana, Bourse Africa is accredited to the Botswana International Financial Services Centre (IFSC). Bourse Africa will cater to financial and commodity market participants and investors, both African and international, to provide possibilities for hedging, arbitrage and investment.
In October this year FTIL acquired a 90% stake in UK-based ACE Group for a $22.5 million. ACE Group is a credit support organization providing third party asset management, quality assurance and inspection services.
Financial Technologies is expanding its presence across the world and has set up exchanges in Asia, Middle East and Africa. Another Indian corporate that is expanding its exchange empire is Anil Ambani’s Reliance Money. After picking up stake in Ahmedabad-based National Multi-Commodity Exchange of India (NMCE) this year, it has also picked up stake in Hong Kong Mercantile Exchange.
The ADAG group company is also planning a presence in Africa and is negotiating to begin a fresh exchange in Nigeria which will offer commodity and currency contracts. It also hired Rajnikant Patel (former MD & CEO of BSE) as President- Exchange Business.