exchanges

Jignesh Shah, chairman of Financial Technologies, a financial services group, was arrested as part of an investigation into fraud at a commodity exchange owned by the group, the National Spot Exchange Limited (NSEL).

Shah has been under police investigation since August after NSEL abruptly suspended trade in most of its commodities contracts on July 31. Investigations by commodities regulator, the Forward Markets Commission, showed what it said was a Rs55bn fraud, as the exchange defaulted on obligations to market participants because it did not have enough collateral. Read more

Checking prices

When Ethiopia set up its commodity exchange in 2008, few observers foresaw the demand it would generate. But five years on, the ECX has shown that a bourse can help tackle food insecurity in poor nations, and countries are now falling over themselves to replicate its successes. Read more

The troubled Hong Kong Mercantile Exchange looks unlikely to be back in business any time soon. With regulators and the Hong Kong police opening separate investigations – followed quickly by three arrests on Tuesday night – the fledgling futures exchange may have done itself irreparable damage. Hong Kong’s financial sector will be very keen indeed to ensure the damage is restricted to HKMEx itself. Read more

The sudden blow-up of the Hong Kong Mercantile Exchange (HKMEx) not only represents the collapse of a commercial proposition. It is also a warning call to Hong Kong’s ambition to develop itself as a commodities trading centre. Read more

Bond trading in Nigeria is largely the preserve of big investors dealing over the counter, but the Nigerian Stock Exchange on Friday opened a new trading platform which it says will make dealing in fixed income “as easy as trading in shares” for retail investors. Read more

The rise of emerging markets has been accompanied by rapid growth in their capital markets. But some markets have emerged more quickly than others. Chart of the week  looks at which markets have grown most quickly, and in which areas. Read more

The Singapore Exchange has signalled its ambition to capture a slice of trading in securities denominated in renminbi, announcing it will list, quote, trade, clear and settle securities denominated in the Chinese currency.

The move comes as the gradual internationalisation of the renminbi is prompting some exchanges to offer products denominated in the currency in anticipation that investors eventually will trade securities and derivatives on exchanges in significant amounts.

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Some investors in the Saudi stock market breathed sigh of relief on Wednesday after the Capital Markets Authority lifted a suspension of trading on Saudi Integrated Telecom Company, known in Arabic as AlMutakamela.

The telecoms operator has been at the center of Riyadh market gossip for the past few months as bankers tried to piece together exactly why trading in its shares was halted on April 1, less than a year after its initial public offering. Read more

BM&FBovespa’s monopoly over Brazilian capital markets is under threat, it seems.

After the publication of an independent report on Monday showing the benefits of allowing more exchange operators into Brazil, the country’s post-trade services group, Cetip, also piled on the pressure on Tuesday. Read more

Hong Kong Exchanges & Clearing is set to control the world’s largest metals market after the board of the London Metal Exchange recommended its £1.4bn ($2.2bn) bid.

The 135-year-old LME has been at the centre of a global bidding war as the industry’s heavyweights attempted to buy one of the last member-owned exchanges in the world.

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When it comes to commodity exchanges, African countries are hoping it’s second time lucky. The continent’s first forays into the arena – mostly in the 1990s – weren’t much of a triumph. But several countries are now trying to fare better as they work to establish or revive their marketplaces.

The driving force behind renewed interest? The unexpected – and fairly significant – success of the Ethiopia Commodity Exchange. Read more

The Gulf is bidding to win a share of the fast-moving global copper trade.

The Dubai Gold and Commodities Exchange will launch a copper futures contract this week, offering investors arbitrage opportunities with the leading copper markets  in London and New York, as well as Mumbai and Shanghai.

As Camilla Hall reports for the FT’s Middle East edition, the exchange plans to launch trading in 5-tonne, cash-settled $-denominated copper contracts on April 20. Read more

Although emerging Asian equities have matured and now trade at parity with the US, there is still a long way to go in terms of risk management products. Jeremy Grant and John Authers explain.

Photo: Bloomberg

Shares in India’s leading commodity exchange (MCX-NSI) debuted at a 34 per cent premium to their issue price on Friday and went on rising during early trading.

Analysts said it proved that the IPO of Multi-Commodity Exchange (MCX) two weeks ago - India’s first IPO of 2012 and first-ever IPO of an exchange – which was 53-times over-subscribed, had been no fluke. Read more

A year after integrating its stock market with those of Peru and Colombia in the MILA initiative (which Mexico now wants to join), Chile’s bourse is innovating again.

Working with BM&FBovespa, Brazil’s largest financial exchange operator, the exchange now plans this year to start trading new derivatives – foreign currency, blue-chip share index and fixed-income futures – in a bid to draw foreign investors. Some derivatives have previously been traded in Chile but traders say the market in them is small and illiquid. Read more