NYSE Euronext expands to India
The New York Stock Exchange's parent company is buying 5 percent of India's number one commodities exchange. And if it weren't for India's cap on foreign purchases, the NYSE would have bought more. Jill Barshay reports.
NYSE Euronext Co-COO Catherine Kinney listens at press conference in Mumbai. (Indranil Mukherjee/AFP/Getty Images)
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Doug Krizner: The parent company of the New York Stock Exchange is expanding its presence in south Asia. NYSE Euronext is buying 5 percent of India's number one commodities exchange. Jill Barshay reports.
Jill Barshay: The Multi Commodity Exchange -- or MCX as it's called -- is just five years old, but it's already the largest commodity exchange in India. Metals, oil and agricultural products are traded there.
Adam Sussman: Oh, like spices -- cardamom, red chile. tumeric.
That's Adam Sussman of the consulting firm Tabb Group. He says Indian laws cap foreigners to a 5 percent stake. Otherwise, the NYSE would have bought the whole samosa.
Sussman: It signals that New York sees greater opportunity in South Asia than they do domestically.
Sussman says the NYSE wants to give its members and the companies that list on its exchange access to rich Indian investors.
Sussman: If we get to a point where they want to raise capital there, we have a strategic partner to grow there.
This small Indian stake is part of a big trend of exchanges going multi-national. Sussman expects more global acquisitions this year.
In New York, I'm Jill Barshay for Marketplace.
