Tag: MCX

CNBC-TV18 Newsbreak Confirmed: MCX to go live on new tech platform today

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Multi Commodity Exchange (MCX) on Tuesday (October 10) said it will go live with the new Commodity Derivatives Platform with effect from Monday, October 16, 2023.

The commodity exchange has said that the trading will now start on October 16 from 10:45 am instead of 9:00 am. The trading will shift on the new trading software, and the time will be applicable only for trading on Monday, October 16.

Also, the exchange has planned to conduct mock trading on October 15, 2023, in order to allow members to participate, and validate setup and connection, for which a separate circular would be issued.

MCX announced last month that it will go live with the new platform developed by TCS on October 3, the implementation was put on hold soon after by the capital market regulator Sebi due to “technical issues” and in the wake of some pending legal matters.

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While the exchange has been holding mock trading sessions for the new software for quite a long time and will continue on October 10-12, it said Sebi has withdrawn its directions to “keep the proposed Go-Live of CDP (Commodity Trading Platform) in abeyance”.

The exchange said Sebi’s decision followed replies submitted by it and its clearing corporation to the regulator on the complaint of Chennai Financial Markets and Accountability (CFMA).

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

CNBC-TV18 Newsbreak Confirmed | MCX gets approval from SEBI tech panel to shift to new platform

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Market regulator Securities and Exchange Board of India’s (SEBI) Technical Advisory Panel has given a go-ahead to Multi Commodity Exchange of India (MCX’s) proposal to shift to a new trading platform, as reported by CNBC-TV18 on October 6.

MCX is now permitted to launch a new web-based commodity derivatives platform (CPD) after several delays. SEBI has withdrawn its ‘Abeyance’ order as tech advisory panel approved the shift.

“Subsequently, SEBI Technical Advisory Committee has recommended that MCX and MCXCCL may Go-Live with the CDP and to intimate SEBI regarding the proposed date for Go Live,” MCX said in a regulatory filing.

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The approval comes after SEBI had asked to put on hold the proposed go-live of its new commodity derivatives platform planned for the first week of October. The reason was the filing of writ petitions by the Chennai Financial Markets and Accountability in the Madras High Court. These petitions raised technical issues surrounding the platform transition, prompting SEBI to exercise caution.

In a circular dated September 27, MCX noted that the new CDP platform would interface with members for providing collateral management, risk management, and settlement of related services. MCX had said earlier that its commodity derivatives platform would go live on October 3.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

SEBI’s tech panel approves MCX’s proposal to shift to new trading platform: sources

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A recent meeting of the Securities and Exchange Board of India’s (SEBI) Technical Advisory Panel has reportedly given the green light to MCX’s proposal to shift to a new trading platform. Here are the recent turn of events in the past two weeks to fully understand the scope of this decision and the issues surrounding it.

The impending transition involves MCX migrating to the new tech platform serviced by Tata Consultancy Services (TCS), which was signed in 2021. However, the exchange continues to operate on a platform provided by 63 Moons Technologies, with a contractual agreement in place until the end of December.

To ensure a seamless transition and avoid disruptions to its trading operations, MCX had planned to commence the migration process three months prior to the expiration of the agreement with the 63 Moons. The approach aimed to ensure that MCX operates on both platforms simultaneously during the three-month transition period before entirely shifting to the TCS platform ahead of the contract expiry with 63 Moons in December.

Following extensive mock sessions conducted throughout the month of September, MCX officially announced its plan to shift to the new trading platform starting October 3. In an unexpected twist, however, markets regulator SEBI advised MCX to put its migration plan on hold. The reason: the filing of writ petitions by the Chennai Financial Markets and Accountability in the Madras High Court. These petitions raised technical issues surrounding the platform transition, prompting SEBI to exercise caution.

With the case now set for a hearing on November 29, there was a temporary cloud of uncertainty hanging over MCX’s transition plans. However, SEBI’s Technical Advisory Committee subsequently reviewed the situation and has given its go-ahead to the migration to TCS’ platform.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

MCX share price: Company to respond to SEBI on October 3; stock recovers from day’s low

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Multi Commodity Exchange of India Ltd. (MCX) has informed the exchanges that market regulator SEBI has advised the company and MCXCCL to furnish detailed comments on the issues pertaining to the Chennai Financial Markets and Accountability (CFMA) by October 3.

The company said that it will submit detailed documents before the SEBI’s Technical Advisory Committee meeting.

Earlier in the day, shares of MCX fell over 8 percent, giving up all the gains it made on Thursday, after the Securities and Exchange Board of India has asked Multi Commodity Exchange of India Ltd. (MCX) to keep the proposed Go-Live of its new Commodity Derivatives Platform “in abeyance.”

In abeyance means a state of temporary disuse or suspension.

The company in an exchange filing stated that the market regulator forwarded a copy of a letter from Chennai Financial Markets and Accountability (CFMA) regarding the new platform. It mentioned that the CFMA has filed write petitions with regards to the CDP, which is pending disposal before the Madras High Court.

SEBI also stated that since the matter involves technical issues, the same will be discussed in the SEBI technical advisory committee meeting, which will be held shortly. However, no dates have been specified for the same.

MCX mentioned in the exchange filing that it will continue to conduct mock tests for the new Commodity Derivatives Platform until further directions from SEBI.

MCX had informed the exchanges on Thursday that its much-anticipated move to a new technology platform will take place on October 3, thereby confirming a CNBC-TV18 newsbreak, which had earlier highlighted the same.

In preparation for this transition, MCX’s Clearing Corporation has scheduled a mock session on October 2. This session is designed to facilitate member engagement and familiarisation with the new platform. MCX’s decision to shift to this platform follows two prior unsuccessful attempts, leading to the renewal of agreements.

Shares of MCX have recovered nearly 6 percent from the lowest point of the day. The stock is now 3 percent lower at Rs 2,032.95.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

CNBC-TV18 Newsbreak Confirmed: MCX will go live on new tech platform on October 3

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Multi Commodity Exchange of India (MCX) has confirmed its much-anticipated move to a new technology platform in the first week of October. This development, revealed through CNBC-TV18 earlier this week, is now confirmed by the company in its disclosure to exchanges.

MCX has announced that it will be implementing the new web-based Commodity Derivatives Platform (CDP) that would interface with members for providing risk management, collateral management and settlement related services to members and market participants and effective date for implementation of this platform will be Tuesday, October 3, 2023, the first trading session of the month of October.

In preparation for this transition, MCX’s Clearing Corporation has scheduled a mock session on October 2. This session is designed to facilitate member engagement and familiarisation with the new platform. MCX’s decision to shift to this platform follows two prior unsuccessful attempts, leading to the renewal of agreements.

The most recent setback occurred in June this year when MCX had to extend its agreement with 63 Moons at the last minute due to the failure to go live on the new platform. To prevent history from repeating itself, MCX had renewed the agreement for an additional six months, extending until December 2023.

In a strategic maneuver, MCX is planning to implement the new platform three months ahead of the expiration of its agreement with 63 Moons. This approach aims to ensure a seamless transition, with both platforms available for use during this period. The existing 63 Moons platform will serve as a robust backup, poised to step in should any unforeseen glitches arise with the new system, according to well-placed sources.

The renewal of the 63 Moons platform had come at a substantial cost, amounting to Rs 125 crore per quarter and a total of Rs 250 crore for the July-December 2023 period.

The stock, in an expectation of this announcement, has seen a significant jump over the past few sessions. The stock hit record high of 1,963 on Tuesday, a jump of 15 percent this month and more than 25 percent this year.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

CNBC-TV18 Exclusive: MCX set to go live on new tech platform on Oct 1, say sources

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Multi Commodity Exchange of India (MCX) is preparing to launch a new technology platform on 1 October. The Mumbai-based commodity exchange, after conducting mock sessions for this platform serviced by Tata Consultancy Services (TCS) for a month now, is ready to go live.

Sources confirm that these mock sessions have been remarkably free of glitches, setting the stage for a transition. However, the process requires the crucial approvals of both the MCX board and the regulatory authority, the Securities and Exchange Board of India (SEBI).

This is not the first time MCX has attempted to adopt a new technology platform. Previous attempts were hampered by technical issues, leading to the renewal of their agreement with 63 Moons. MCX has renewed its contract with 63 Moons in June of this year, securing the platform until December 2023. This renewal came for Rs 125 crore per quarter, totalling Rs 250 crore for the July-December 2023 period.

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In a strategic move, MCX plans to implement the new platform three months before the expiry of the 63 Moons agreement. This proactive approach aims to ensure a smooth transition, with MCX planning to have both platforms operational during this period. The existing 63 Moons platform will serve as a reliable backup, ready to step in should any unforeseen glitches arise with the new system, according to sources.

As of now, MCX has not responded to CNBC-TV18’s query regarding going live on the new technology platform. Nonetheless, the anticipation and excitement surrounding this significant move are already evident in the stock market.

MCX’s stock has surged to a 52-week high, climbing more than 9 percent on the back of this news. Over the past month, the stock has risen by 15 percent, and for the entirety of 2023, it has seen an increase of 25 percent.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

MCX consolidated net profit drops 52.5% from last year

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Multi Commodity Exchange of India (MCX) recorded a consolidated net profit of Rs 19.66 crore for the first quarter of this fiscal, which was 52.5 percent lower than last year’s Rs 41.46 crore in the same period.

However, it’s net profit is 261 percent higher than the previous quarter’s 5.45 crore.

The consolidated income from operations in the first quarter this fiscal came in at Rs 145.77 crore, which was 33.9 percent more than last year’s Rs 108.79 crore in the same period. The company’s operational income was 8.9 percent higher than last quarter’s Rs 133.75 crore.

The company, in a statement, said its earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter under review increased 41 percent to Rs 31 crore from the previous quarter’s Rs 22 crore.

“EBITDA margin consolidated stood at 19 percent for the first quarter and 14 percent for the fourth quarter of last fiscal, marginally higher in spite of high technology servicing cost,” the company said.

In another exchange filing, the company said its board of directors had approved the record to determine shareholders that will be eligibele get the final dividend as September 15 and also decided to pay it by October 24.

It also fixed September 26 as the next annual general meeting date.

Its stock ended nearly 0.5 percent higher at Rs 1,667.80 per share on the Bombay Stock Exchange (BSE) on Friday, July 28.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

MCX Share Price: Stock drops 12% on contract extension with 63 Moons, latter jumps to 52-week high

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of MCX are locked in a lower circuit of 10 percent after it agreed to extend a software support services contract with 63 Moons at a much higher price compared to earlier.

On Thursday, the company informed that it has extended the services contract with 63 Moons at a price of Rs 125 crore per quarter, compared to Rs 87 crore that it paid during the March quarter and Rs 67 crore that it paid in December.

On the other hand shares of 63 Moons Technologies have risen as much as 16 percent on Friday to a 52-week high of Rs 250. The contract will be extended for a period of six months or two quarters.

“We have once again agreed to the eleventh-hour request by MCX, which according to them is for the ‘last time’ for one more time,” the statement said. “We sincerely wish that this ‘last time’ really happens someday,” an exchange filing from 63 Moons said on Thursday.

The commodity trading exchange had chosen TCS in September 2021 as its technology solutions provider for its growth and transformation journey. As part of the plan, TCS would help MCX build a new technology core and transform its trading and post-trading functions. This was done as MCX believed that the transition would reduce overall costs.

However, it has not been able to transition to the new platform within the stipulated timelines, leading to multiple extensions with 63 Moons. The contract with 63 Moons ended in September last year.

Brokerage firm Morgan Stanley has maintained its underweight rating on MCX with a price target of Rs 1,125. It says that the extension of the contract with 63 Moons will wipe out most of its financial year 2024 net profit. Although forecasts for financial year 2025 will remain unaffected if the implementation takes place before December 2023, the uncertainty could weigh on the stock price, Morgan Stanley said in its note.

Investec has downgraded MCX to hold from the earlier rating of buy, adding that the company seems to have underestimated the complexity involved in the technology transition. It has significantly downgraded its financial year 2024 Earnings Per Share (EPS) estimates to factor in the additional costs.

MCX’s EPS estimates for financial year 2024 have also been cut by 69 percent by Motilal Oswal, who said that the delay in transition will impact new product launches as well as increasing FPI participation in the segment.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

MCX extends support services contract with 63 Moons for another six months at a higher price

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Multi-Commodity Exchange (MCX) has decided to extend its support services rendered by its existing software vendor, 63 Moons Technologies Ltd. for a period of six months starting July 1, 2023, it said in an exchange filing.

The overall consideration for the same would be Rs 125 crore per quarter, which is higher than the Rs 87 crore it paid to them during the March quarter of financial year 2023.

MCX’s software support and maintenance agreement with 63 Moons dates back to September 2014 and ended in September 2022. However, the company was forced to take multiple extensions with the existing service provider as it could not transition to the new trading platform within the stipulated deadlines.

In a separate exchange filing, 63 Moons mentioned that they have ‘once again’ agreed to the ‘eleventh-hour’ request made by MCX.

“We have once again agreed to the eleventh-hour request by MCX, which according to them is for the ‘last time’ for one more time,” the statement said. “We sincerely wish that this ‘last time’ really happens someday,” it further added.

The commodity trading exchange had chosen TCS in September 2021 as its technology solutions provider for its growth and transformation journey. As part of the plan, TCS would help MCX build a new technology core and transform its trading and post-trading functions. This was done as MCX believed that the transition would reduce overall costs.

Software services have been the major expense for MCX over the last few years, rising 29 percent during the March quarter when compared to December, during which it paid Rs 68 crore.

Shares of MCX will be in focus on Friday as the stock has risen 18 percent over the last one month. Shares of 63 Moons on the other hand, have risen 30 percent over the last four sessions, since MCX began the mock trading sessions for the new platform.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

MCX says first 30 minutes of mock trading session glitch-free, to continue till 11:30 PM: Exclusive

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Leading commodity exchange, Multi Commodity Exchange of India Ltd. (MCX) has now confirmed to CNBC-TV18 that the first 30 minutes of its mock trading session for its new platform has been “glitch-free” and that the session will continue until 11:30 PM tonight. India’s leading commodity exchange is conducting mock trading sessions for its new platform starting 11 AM, the exchange had confirmed to CNBC-TV18 earlier.

The exchange had cancelled the mock trading session for the new platform for unspecified reasons on Thursday for the second time in a week.

MCX is in the process of implementing a new commodity derivative platform as its tech platform deal with 63 Moons Technologies is expiring this month. 63 Moons Technologies provided exchange technology support and services to MCX.

The exchange had notified its stakeholders that it was going to conduct a mock trading session on June 22 to familiarise members with the new trading platform.

It, however, on Thursday notified that the mock trading session on 22 June 2023 from 5 PM to 11:30 PM stood cancelled. The exchange had earlier cancelled the mock trading session scheduled on June 19 between 2 PM and 10:30 PM.

The company management during the conference call after the fourth quarter results had sounded confident of completing the transition to the new TCS software by the end of the first quarter of financial year 2024. The company’s software costs increased by 29 percent in the March quarter of against a three-times jump in the December quarter.

MCX had extended the software contract with 63 Moons up to June 23 during the December quarter at Rs 81 crore per quarter.

Shares of MCX, which had declined as much as 6 percent during the early trading on Friday, have now recovered to trade with losses of 3 percent at Rs 1,572.75. The stock is still up 8 percent on a year-to-date basis.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow