Troubled Indian trading platform provider Financial Technologies Ltd (Financial Tech) announced the sale of its Singapore Mercantile Exchange (SMX) unit to Intercontinental Exchange Group Inc (ICE). The said deal was valued at USD150 million. This was according to a report published by Reuters today.
The news comes at a time when the company is facing regulatory scrutiny from Indian regulators and police. The company was suspected of violations of rules on contract durations. The alleged violations were centered on National Spot Exchange (NSEL), a commodities exchange owned by Financial Tech, the report said.
Analysts said Financial Tech was expected to sell some of its exchange units to protect its core business. In a statement, the company said the proceeds derived from the sale will be used to repay its foreign currency loans, the report stated.
SMX mainly trades base and precious metals. The firm had an annual turnover of USD71 billion. The unit's average daily volume was 8,200 contracts, the company website said. These numbers fall way below the domestic exchange volumes of Financial Tech, Reuters reported.
Join the Conversation