MCX

MCX
The Multi Commodity Exchange of India Limited (MCX), India’s first listed exchange, is a state-of-the-art, commodity futures exchange that facilitates online trading, and clearing and settlement of commodity futures transactions, thereby providing a platform for risk management. The Exchange, which started operations in November 2003, operates under the regulatory framework of Securities and Exchange Board of India (SEBI).

It is India’s largest commodity futures exchange and the turnover of the exchange for the year 2015 was 55.52 trillion rupees (865.55 billion US dollars). MCX offers futures trading in bullion, non-ferrous metals, energy, and a number of agricultural commodities (mentha oil, cardamom, crude palm oil, cotton and others).
In 2015, MCX was sixth among the global commodity bourses in terms of the number of futures contracts traded, the latest yearly data from Futures Industry Association (FIA) showed.

In February 2012, MCX had come out with a public issue of 6,427,378 Equity Shares of Rs. 10 face value in price band of Rs. 860 to Rs. 1032 per equity share to raise around $134 million. It was the first ever IPO by an Indian exchange and made MCX India’s only publicly listed exchange.
From September 28, 2015, MCX is being regulated by the Securities and Exchange Board of India (SEBI). Earlier MCX was regulated by the Forward Markets Commission (FMC), which got merged with the SEBI on September 28, 2015.

MCX offers trading in varied commodity futures contracts across segments including bullion, ferrous and non-ferrous metals, energy and agricultural commodities. The Exchange focuses on providing commodity value chain participants with neutral, secure and transparent trade mechanisms, and formulates quality parameters and trade regulations, in conformity with the regulatory framework. The Exchange has an extensive national reach, with 709 registered members, operating through more than 5, 80,000 trading terminals (including CTCL), spanning over 1700+ cities and towns across India as at the end of 2015-16. MCX is India’s leading commodity derivatives exchange with a market share of 84.3 per cent in terms of the value of commodity futures contracts traded in 2015-16.

MCX is India’s No. 1 commodity exchange with 84.3% market share in 2015
The exchange’s main competitor is National Commodity & Derivatives Exchange Ltd ([1])
In 2015, the futures contracts on Gold, Silver, Copper, Crude Oil offered by MCX ranked among the top 20 global futures contracts in their respective segments (2015 FIA Annual Volume Survey).

MCX has several strategic alliances with leading exchanges across the globe
In 2015, the average daily turnover of MCX was 215.18 billion rupees (3.35 billion US dollars)
MCX now reaches out to more than 1700 cities and towns in India through more than 585,000 trading terminals (including CTCL) (as on March 31, 2016)
MCX COMDEX is India’s first and only composite commodity futures price index
To ease participation, the Exchange offers facilities such as calendar-spread facility, as also EFP (Exchange of Futures for Physical) transactions which enables participants to swap their positions in the futures/ physical markets. The Exchange’s flagship index, the MCXCOMDEX, is a real-time composite commodity futures price index which gives information on market movements in key commodities. Other indices developed by the exchange include MCX Agri, MCX Energy, MCX Metal and Rainfall Indices. MCX has been certified with three ISO standards, ISO 9001:2008 Quality Management System, ISO 27001:2013 Information Security Management Standard and ISO 14001:2004 Environment Management Standard.

With an aim to seamlessly integrate with the global commodities ecosystem, MCX has forged strategic alliances with leading international exchanges such as CME Group, London Metal Exchange (LME), Dalian Commodity Exchange (DCE) and Taiwan Futures Exchange (TAIFEX). The Exchange has also tied-up with various trade bodies, corporates, educational institutions and R&D centers across the country. These alliances enable the Exchange in improving trade practices, increasing awareness, and facilitating overall improvement of the commodity market.

MCX’s ability to use and apply technology efficiently is a key factor in the development of its business. The exchange’s technology framework is designed to provide high availability for all critical components, which guarantees continuous availability of trading facilities. The robust technology infrastructure of the exchange, along with its with rapid customization and deployment capabilities enables it to operate efficiently with fast order routing, immediate trade execution, trade reporting, real-time risk management, market surveillance and market data dissemination.
The Exchange is committed to nurturing communities that are vital for the development of its business. To achieve its goal of inclusive growth, it collaborates with diverse partners. Gramin Suvidha Kendra, its social inclusion programme in partnership with India Post, seeks to enhance farmers’ value realization from agricultural activities.

MCX has been continuously raising the bar through effective research and product development, intelligent use of information and technology, innovation, thought leadership and ethical business conduct.

The Author

Pramod Baviskar

Professional Market Trader And Owner Of Dalal Street Winners Advisory And Coaching Services. Working Since 2007 And Online Presence Since 2010. We Provide Highly Accurate And Professional 1 Entry And 1 Exit Future, Option, Commodity, Currency And Intraday Stock Tips On Whatsapp With Live Support And Follow Up.
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