Financial Technologies (India) Ltd

From MarketsWiki
Revision as of 15:00, 21 March 2014 by ZheLi (Talk | contribs)

Jump to: navigation, search

Financial Technologies (India) Ltd.
FinancialTechnologies.jpg
Founded 1995
Headquarters Mumbai, India
Key People Chairman and CEO Jignesh Shah
Products Financial trading exchanges, related information
Website http://www.ftindia.com

Financial Technologies (India) (FTI) is an India-based operator of securities and derivatives exchanges and developer of electronic trading platforms, most in its home country but also expanding into Asia, the Middle East and Africa. FTI also owns several companies that provide data, electronic-platform and digital transaction services to a range of Indian financial markets.

Background

FTI was founded as an exchange-technology developer in Bombay (now Mumbai) in 1995 and first listed on the Bombay Stock Exchange in January 1999. Since then it has grown rapidly through both expansion and acquisition via its exchanges in India and abroad plus its five Indian trading- and exchange-technology ventures. Its best-known trading-technology products include the broker-based Open Dealer Integrated Network (ODIN), internet trading platform FT Engines and forex-based trading product FX Direct. FTI has since grown to a market value of US$1.25 billion at July 31, 2009[1], although this figure fell significantly from US$1.84 billion at March 31, 2008.[2]

Exchanges

FTI holds a significant interest in ten financial trading exchanges - some still under development - in its home country and abroad. These exchanges list a broad range of spot and derivatives contracts on commodities, currencies, forex, energy and precious metals in Asia, the Middle East and Africa.

Indian exchanges

  • National Spot Exchange Limited ((NSXL): Mumbai-based spot-market commodity exchange and billed as the first such exchange to cover the pan-India market. NSX is a joint venture between FTI and the National Agricultural Cooperative Marketing Federation of India, Ltd. (NAFED)
  • MCX-SX: India's newest entrant to the expanding market in exchange-trading is called a stock-exchange but actually trading largely currency derivatives. MCX-SX was spun-off from the successful MCX commodity exchange.
  • Indian Energy Exchange (IEE): A recent joint venture between Financial Technologies and Indian energy-investment group PTC India Financial Services Ltd. IEE was approved in 2007 and began trading pan-Indian electricity contracts in June 2008.

Exchanges abroad

  • Singapore Mercantile Exchange (SMX): A multi-product exchange currently in development on the SE Asian island-nation aimed at listing global commodity derivatives. SMX is a wholly-owned subsidiary of Financial Technologies and will be its 10th exchange.
  • Bourse Africa (Botswana) (BA): Botswana-based multi-asset exchanges trades commodities, currencies, bonds and diamonds aimed at created a pan-African market. Financial Technologies is PA's main shareholder but the exchange has several unspecified pan-African investors.
  • Bourse Africa Limited : Based on the island of Mauritius, east of Madagascar, the exchange offers trading in pan-African and international commodity and currency derivatives contracts. The exchange is a Financial Technologies sole venture.

Technology businesses

  • National Bulk Handling Corporation (NBHC): An India-wide platform managing and connecting storage facilities for commodities to allow bank financing and collateral management.
  • Credit Market Services Ltd (CMS): Supplies technology, advisory and accreditation services to the Indian credit market, including a Credit Market Academy, Global Institute of Treasury & Credit Markets.
  • atom technologies ltd (atom): Digital payment processing system that allows customers to send any financial transaction over a mobile phone through interactive voice response (IVR).
  • TickerPlant Ltd: Processes and sends real-time market data and provides price-performance services over open technology standards via a database that verifies content's accuracy.
  • FT Knowledge Management Company (FTKMC): Offers training and customized consultancy services to Financial Technologies' corporate customers, including risk management, commodity trading and valuation models.

Key people

Financial Technologies founder Jignesh P. Shah is also the company's chief executive officer, chairman and managing director and serves in the same roles for the company's most successful venture to date, the MCX commodity exchange. He established FTI in 1999 after a brief career as a trader at the Bombay Stock Exchange and has since been honored for his entrepreneurship by the World Economic Forum and Rotary International.[3] He holds a Bachelor of Engineering degree from Mumbai University. In December of 2013, the Forwards Market Commission declared Shah unfit to hold any position at the exchange after a payment default at another exchange he founded, the National Spot Exchange, prompted the government to suspend trading.

FTI co-founder and technology director Dewang Neralla established the company's global product portfolio and technology infrastructure and is responsible for integrating new technology and products into FTI's existing structure.[4] As a former employee of the Bombay Stock Exchange he helped design its BOLT trading system and he holds a Bachelor of Engineering degree in computer science.

Recent results

FTI in June 2009 declared quarterly revenue of 585 million Indian rupees (approx. $US10 million) for the first three months of 2009-2010, a rise of 33% on the same figure 12 months earlier. The company's net profit - excluding long-term gain on its shares - jumped 166% to 205 million rupees over the same period.[5] The FTI board also declared an interim dividend of 100%, amounting to two rupees per share of face value two rupees.

Latest news

  • In July 2009 FTI selected the FIX-based Client Simulator developed by trading platform developer Aegisoft to test its FIX Gateway adaptor that is connected to all 10 of its existing and developing exchanges.[7] Client Simulator tests inbound client order flows and reduces development cycles, allowing customers to bring trading systems to market more quickly.
  • FTI has finally given a timetable for the launch of it latest three international electronic exchange ventures, according to a late April, 2010 report in India's Business Standard.[8] The Pan-Asian Singapore Mercantile Exchange will begin trading first in August, followed by the Africa-centered Global Board of Trade, Mauritius in September and the Islamic finance-enabled Bahrain Financial Exchange in October, the report stated. Chairman and CEO Jignesh Shah called the three launches "perhaps the first company in the history of modern civilization to successfully set up three greenfield regulated exchanges from ground-up which would go live in the same year."
  • In November of 2013, FTIL announced it would sell off its entire stake in Singapore Mercantile Exchange to the Singapore unit of IntercontinentalExchange Group for $150 million. FTIL would use funds raise from the sale for repayment of outstanding debt towards external commercial borrowings and foreign currency loan to banks. [9]
  • In December, 2013 the board of MCX asked Financial Technologies of India cut its holding in the exchange from 26 percent to 2 percent after the regulator said it was unfit to own a controlling stake. MCX advised Financial Technologies to make the cuts within a month.[10]
  • On March 14, 2014, FTIL announced it would sell National Bulk Handling Corporation (NBHC). The transaction was expected to be completed between April 15 to April 30 of 2014. The company informed that the decision to sell its stake in NBHC follows the listing agreement of its exchanges, especially the equity exchange, MCX-SX. [11]
  • On March 20, 2014, Securities and Exchange Board of India (SEBI) ruled Financial Technologies India not "fit and proper" to own stakes in any stock exchange. And FTIL was required to sell its shares in five entities including MCX Stock Exchange (MCX-SX), MCX-SX Clearing Corporation, Delhi Stock Exchange (DSE), Vadodara Stock Exchange (VSE) and National Stock Exchange (NSE) within 90 days.[12] This regulatory order is related to the Rs 5,600-crore National Spot Exchange Limited (NSEL) scam, which FTIL owns 99.9% of the company.[13]FTIL was charged of the 'highest beneficiary' by Forward Markets Commission (FMC), the regulator for the commodity derivatives market.[14][15]

References

  1. Financial Technologies' operating revenue (standalone) increased by 33%. Financial Technologies (India).
  2. FTIndia mini-profile. Help.com.
  3. Jignesh P. Shah. BusinessWeek.
  4. Dewang Neralla. Financial Technologies (India).
  5. Financial Technologies' operating revenue (standalone) increased by 33%. Financial Technologies (India).
  6. Financial Technologies to raise Rs 1,500 cr via various routes. Press Trust of India.
  7. Financial Technologies Selects Aegisoft's Client Simulator to Test and Support Its FIX-Based Trading Gateway. MarketWire.
  8. Financial Tech to launch 3 international exchanges in 2010. Business Standard.
  9. Financial Technologies to sell Singapore exchange to IntercontinentalExchange for $150 million. Yahoo Finance.
  10. MCX Asks Financial Tech to Cut Stake After Regulator's Rebuke. Bloomberg.
  11. FTIL sells National Bulk Handling Corp for Rs 242 crore. Firstbiz.
  12. Despite Jignesh Shah woes, MCX’s long-term business prospects solid, say analysts. The Financial Express.
  13. Financial Tech ruled 'not fit' to run MCX. Reuters.
  14. Sebi strips FTIL of ‘fit and proper’ tag. The Time of India.
  15. NSEL scam: FMC finds Jignesh Shah, Financial Technologies not fit and proper to run any bourse. The Financial Express.