Mumbai: The world’s largest financial exchange group, NYSE Euronext Inc. (NYX), is weighing options for a public offer in India, Japan or a South-East Asian country, chief executive Duncan L. Niederauer said.
Along with this, NYX hopes to knock down the hurdles in crosslisting for its clients, as many companies in the US and Europe are looking at multiple listings across the world, especially in the more liquid markets in Asia, such as India and China.
“We are contemplating listing in one of the liquid markets (in Asia)... India would be one (option),” said Niederauer, who is on his first visit to India after taking over as NYX CEO in April.
On the other hand, Niederauer said, he would also “encourage NSE (National Stock Exchange) for an initial public offer.” Public currency, he said, is essential for bourses. Strategic interest in the market will be an important criterion for NYX’s Asia listing.
This is similar to how the group’s equity positions in some bourses are—forge relations based on its strategic interests, Niederauer said.
The New York-headquartered group, which provides public trading platforms for $30.5 trillion (Rs1,226 trillion) worth of listed entities, has 5% equity position each in two Indian bourses—NSE and the Multi Commodity Exchange (MCX).
The US- and France-listed NYX was formed in 2007 from the merger of NYSE Group Inc., which runs the New York Stock Exchange (NYSE), and Paris-based Euronext NV, which owns bourses across Europe, as part of an industry-wide consolidation.
NYX plans to be a “technology consultant” for both NSE and MCX, Niederauer said. It now has a representative on the executive board of NSE.
As for the small number of Indian companies listing on NYSE, Niederauer said, this was probably because of the higher cost of listing and stringent regulations.
Twelve Indian companies are listed on NYSE. These include ICICI Bank Ltd, Wipro Ltd, HDFC Bank Ltd, Satyam Computer Services Ltd and Tata Motors Ltd, which are part of India’s key equity index Sensex.
NYX will also woo smaller Indian companies by marketing its platforms for small and medium-sized companies— NYSE Arca and Alternext.
Such Indian companies have mostly floated their shares on the Alternative Investment Market (AIM), a sub-market of NYX’s competitor London Stock Exchange (LSE).