IntercontinentalExchange To Buy Singapore Mercantile Exchange In All-cash Deal

(RTTNews) - Global markets operator IntercontinentalExchange Group, Inc. (ICE) has agreed to acquire Singapore Mercantile Exchange or SMX in an all-cash transaction. The transaction would add to ICE's current network of markets and clearing houses in the U.S., Canada, Brazil, the U.K. and continental Europe. As part of the deal, ICE would purchase 100% of SMX, including the SMX Clearing Corp. or SMXCC, an unit of SMX and the clearing house for all SMX trades. The transaction, approved by both the companies' boards, may close by the end of 2013.

Once the transaction is complete, ICE believes that there would be a period of business transition in which ICE would implement technology changes and, in consultation with market participants, clearing members, and regulators, would assess the product and clearing strategy of SMX to ensure the offering meets market participants' needs in the region.

As a result of the transaction, SMX and SMXCC would transition from their existing technology to the ICE trading and clearing platforms. SMX would continue to be based in Singapore and operate as a separate recognised body with its own independent board of directors, including Ang Swee Tian, the former President of the Singapore Exchange.

SMX, which operates futures markets in Singapore across metals, currencies, energy and agricultural commodities, is a subsidiary of Financial Technologies (India) Ltd (FTIL) and is regulated by the Monetary Authority of Singapore (MAS).