Nyse Euronext pays $200m for 20% stake in Qatar Exchange

Nyse Euronext pays $200m for 20% stake in Qatar Exchange

Nyse Euronext is paying $200 million to take a 20% stake in the newly formed Qatar Exchange, in a deal that will also see the transatlantic bourse provide the new venture's technology platform.

Qatar Holdings, the investment arm of the emirate's sovereign wealth fund, will own the remaining 80% in the exchange, which is the successor to the Doha Securities Market (DSM).

The new exchange - which began trading on Sunday - is using Nyse Euronext's SFTI communication network infrastructure and will migrate to the Universal Trading Platform within the next 12 to 18 months.

The signing of a binding agreement comes a year after Nyse Euronext revealed it had won a competitive bidding process for the stake, although at the time it said it would pay $250 million for a 25% share in DSM.

In April the deal was restructured as turbulent markets and fierce pricing amid increasing competition contributed to a 55% slump in Nyse Euronext's first quarter profits.

Nyse Euronext veteran Andre Went has been appointed CEO of the exchange.

Ahmad Al-Sayed, MD and CEO, Qatar Holding, says: "This latest strategic venture will allow Qatar 's financial markets to run on state-of-the-art technology systems. Technology and market know-how transfer opportunities will greatly enhance our knowledge and help generate more high value employment opportunities for our people."

Nyse Euronext is understood to have fought off competition from the London Stock Exchange to secure the stake, giving it a foothold in the emerging Middle East Region.

The exchange says it will base a number of its Middle East operational and technology support functions in Doha, making it the exchange's "business hub" in the region.

Nyse Euronext rival Nasdaq OMX already has a presence in the region through a 33% stake in the Dubai International Financial Exchange.

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