NYSE eyes more stake in MCX, NSE

The NYSE Euronext is betting big on India. Not only does it intend to raise its stake in the National Stock Exchange (NSE) and the Multi Commodity Exchange (MCX) once foreign ownership rules are eased, but it also has plans to partner the two Indian bourses in developing their business.

In the years to come, India could be one of the markets where the NYSE Euronext lists its shares. "We are contemplating where else to list," NYSE Euronext CEO Duncan L Niederauer told reporters.

While he did not indicate any timeframe, Niederauer said, India, one of the Asean (Association of South-East Asian Nations) markets, China and, to a lesser extent, Japan were the countries on the radar. NYSE recently listed in Europe and the company's shares are now traded 13-14 hours a day.

NYSE, a subsidiary of the NYSE Euronext, owns a 5 per cent stake in NSE, while the parent had earlier this year signed an agreement with MCX to acquire a 5 per cent stake in the commodity exchange. The MCX deal is expected to be closed by June this year.

When asked about his two existing investments in India, he said the NYSE Euronext could look at the precious metals segment with MCX. The NYSE Euronext had acquired the entire stake held by the CME group in CBoT Metals Complex.

With NSE, where the global giant has a board nominee, Niederauer said NYSE could provide technical assistance, given the high volumes that it is used to dealing in. "We can be a technical consultant or a potential partner," he added.