Deutsche Boerse to invest in Indian commodities exchange

Deutsche Börse Group intends to acquire a minority stake in a new commodities exchange in India.

While the German exchange has declined comment, a spokesperson for the Bombay Stock Exchange (BSE) told ShareCast on Tuesday that Deutsche Börse's planned stake could be in the region of 5%, as the Indian exchange moves to set-up a new commodities trading outfit at a special economic zone in India’s Gujarat state.

The move, should it materialise, would not be the first Indian foray for Deutsche Börse.

In 2007, it took a 5% stake in the BSE. Both the BSE and Deutsche Börse already have a wide-ranging technological partnership.

The BSE currently deploys Deutsche Börse’s N7 trading network synced to its equity and derivatives platforms.

Financials of the proposed transaction were not disclosed by the BSE spokesperson, but he added that “co-operation with Deutsche Börse would be at all levels including data and sales”.

According to Indian broadcaster NDTV Profit, markets competition is increasing in India with the BSE toughing it out with domestic rival National Stock Exchange (NSE).

The NSE is also planning a new stock exchange at the same venue in Gujarat.