US MARKETS group INTL FCStone yesterday snapped up Singapore-based derivatives exchange Cleartrade in a deal which is estimated to value the smaller partner at roughly $60m (£39.4m).
Half of the platform has been bought initially with an option to later buy another 40 per cent. The deal shows INTL taking a bet on Asian booming, as Cleartrade focuses on commodity derivatives.
“It is a gateway between London and Asia for swap dealers, hedge funds,” Cleartrade boss Richard Baker told City A.M. “There is a lot of buyside demand on commodities like iron ore from China, with hedging from London-based firms.”
And the purchase also represents a desire by INTL to expand without exposure to the slow Eurozone and its planned financial transactions tax. Cleartrade is regulated in Singapore and licensed in Switzerland and the US.