New York Mercantile Exchange (Nymex) will take a 10%-stake
in Montreal Exchange (MX) for what is believed to be around
$80m and create a new Canadian energy trading and clearing
The proposed joint venture between Nymex and MX will create
a new Canadian entity headquartered in Calgary, to provide
trading and clearing of OTC crude oil, natural gas, and
electricity products with a focus on the Canadian markets.
Phase two of the business plan is to offer exchange-traded
energy futures and options contracts as well. Pending
regulatory approvals, the deal could close by 7 March and the
exchange could launch within the year.
MX has long looked towards expanding into energy and
capatalise on the absence of such a market in Canada first
citing an interest around a year ago (see FO Week Vol
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