Last updated: April 2010

Multi Commodity Exchange of India Ltd.

India

Exchange Square, Suren Road,
Chakala, Andheri East
Mumbai - 400093
URL: www.mcxindia.com

Established: 2003

Type: Electronic Futures Exchnage

  

 


Introduction:

Multi Commodity Exchange of India Ltd. (MCX), India’s No 1 commodity exchange, is a state-of-the-art electronic commodity futures exchange. The demutualised Exchange has permanent recognition from the Government of India to facilitate online trading, and clearing and settlement operations for commodity futures across the country.  The Exchange operates within the regulatory framework of the Forward Contracts Regulation Act, 1952 (FCRA, 1952) and regulations there under.

Having started operations in November 2003, today, MCX holds a market share of over 80% of the Indian commodity futures market, and has more than 2000 registered members operating through over 100,000 trader work stations, across India. The Exchange has also emerged as the sixth largest and amongst the fastest growing commodity futures exchange in the world, in terms of the number of contracts traded in 2009.

MCX is the largest and most diverse commodities exchange in India offering more than 40 commodities across various segments such as bullion, ferrous and non-ferrous metals, and a number of agri-commodities on its platform. The Exchange is the world’s largest exchange in Silver, the second largest in Gold, Copper and Natural Gas and the third largest in Crude Oil futures, with respect to the number of futures contracts traded.

MCX is the most efficient and cost-effective platform for price discovery and price-risk management.  The Exchange allows people to shift risks in the most economic manner possible. Moreover, our company empowers people to price their commodities not just with little or no delay but also with a choice of forward periods. In the markets where we offer contracts, price transparency is greater, and prices are better integrated over time and across space.

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.

MCX’s endeavour has been to continuously raise the bar through innovation, thought leadership and intelligent use of information and technology. The Exchange’s trading platform ensures absolute security of traders’ data. MCX has been certified to three ISO standards including ISO 9001:2000 quality management standard, ISO 27001:2005 information security management standard and ISO 14001:2004 environment management standard. The Exchange’s platform enables anonymous trades, leading to efficient price discovery. Moreover, for globally-traded commodities, MCX’s platform enables domestic participants to trade in Indian currency.

MCX has become synonymous with innovation as it has consistently done things differently and also adopted new practices to emerge as thought leader in its industry.

NEWS:

Log on to www.mcxindia.com  for the latest news on MCX.

MCX STOCK EXCHANGE (MCX-SX)

 

MCX Stock Exchange, India's New Stock Exchange commenced operations on October 7, 2008, under the regulatory framework of Securities & Exchange Board of India (SEBI) and Reserve Bank of India (RBI). Currently, MCX-SX offers an electronic platform for trading in currency futures contracts. Clearing and settlement is conducted through the MCX-SX Clearing Corporation Ltd. (MCX-SX CCL).

Within a year of its inception, MCX-SX achieved a significant growth in average daily turnover and open interest. The average daily turnover increased from Rs 355 cr during the first month of operations to Rs 14,617 cr for the month of January 2010. MCX-SX is now the leader in the currency derivatives segment.

MCX-SX witnesses participation from 496 cities and towns across India and has a strong member base of 650. A whole array of financial market participants, including hedgers (i.e. exporters, importers, corporates and Banks), investors and arbitrageurs use the Exchange platform.

True to its philosophy of ‘Systematic Development of Markets through Information, Innovation, Education and Research’, MCX-SX endeavours to ensure continuous innovation and to introduce products for optimising the needs of diverse market participants under the extant regulatory framework. The Exchange is committed to expand its product offerings and provide trading in segments like equity, futures and options on equity, debt, interest rate futures, index, exchange traded funds and SME, subject to necessary regulatory clearances.