After the Multi Commodities Exchange (MCX) announced the launch of a new commodities derivative platform (CDP), the capital market regulator Securities and Exchange Board of India (SEBI) requested that MCX “abeyance” the CDP launch. In its formal announcement, MCX disclosed the facts. In response to SEBI’s request, MCX stated that the issue is a technical one and that the technical committee of SEBI would shortly convene to address it. Up until that time, MCX will keep running practice sessions for the new commodities derivative platform.
News about MCX CDP debut
According to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please be informed that SEBI has forwarded a copy of the letter dated September 27, 2023, from Chennai Financial Markets and Accountability (CFMA) regarding CDP via email dated September 28, 2023.
According to MCX, “the Exchange will continue to conduct CDP mock tests pending further directions in the matter from SEBI.” “The Exchange is ready and keen to go live as soon as permitted,” the company stated.
Anuj Gupta, Head of Commodity and Currency at HDFC Securities, explained this latest development in relation to the CDP launch by stating, “As per listing obligation and disclosure requirement regulation. The Technical Advisory Committee of Sebi would discuss it.
The practice session for the CDP will take place on October 2, 2023, contrary to an earlier announcement by MCX that it will launch the CDP on October 3, 2023. Tata Consultancy Services (TCS) provides support for the MCX’s new platform for commodities derivative trading.
This is not the first time that MCX will use a fresh technological foundation. In June of this year, MCX extended its deal with 63 Moons. By extending their agreement with 63 Moons, MCX has preserved the platform through December 2023. This renewal costs 125 crore every quarter, or 250 crore for the period of July to December 2023.
