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 facility.
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...