Multi Commodity Exchange of India Ltd
TypeCommodity Exchange
BSE534091
IndustryCommodity Exchange
Founded10 Nov 2003
HeadquartersMumbai, India
Key people
P S Reddy
(MD & CEO)
ProductsCommodity Derivatives
OwnerPublic Listed Company
ParentFinancial Technologies Group
Websitewww.mcxindia.com

Multi Commodity Exchange of India Ltd (MCX) (BSE: 534091) is a recognized stock exchange under the aegis of Securities Exchange Board of India (SEBI), which is the securities market regulator in India since 28th September 2015. Prior to being regulated by SEBI, MCX was regulated by the Forward Markets Commission (FMC), which merged with SEBI on 28th September 2015.

MCX, India's largest commodity derivatives exchange, was established in the year 2003 and is based in Mumbai, Maharashtra, India. MCX became India’s first listed exchange post its public issue (IPO) in February 2012.

MCX offers trading in commodity derivative contracts including futures and options. The traded commodities range is wide that includes bullion, energy, metals to agricultural commodities.

MCX launched the MCX India Commodity Indices (MCX iCOMDEX)[1] series on December 20, 2019, which conform to the global best practices set by the International Organisation of Securities Commissions (IOSCO). The MCX iCOMDEX series consists of iCOMDEX Composite, iCOMDEX Base Metals, iCOMDEX Bullion, iCOMDEX Gold, iCOMDEX Copper and iCOMDEX Crude Oil. Later, MCX launched futures contracts on MCX iCOMDEX sectoral indices viz. Bullion, Base Metal and Energy indices.

The efforts that started in the fourth quarter of FY 2018-19 to migrate to 'Compulsory Delivery-based' contracts in all base metals were successfully completed in FY 2019-20. The launch of indigenously benchmarked deliverable futures contracts of Copper, Aluminum, Zinc, Lead and Nickel on MCX, has paved the way for the Indian market prices for metals to be discovered on an exchange platform in a transparent manner. This fulfills an important step towards development of domestic benchmarks which reflect domestic market fundamentals, while the delivery standards are in tune with international standards.

During FY 2021-22, the Average Daily Turnover (ADT) of commodity futures contracts stood at Rs 26,178 crore vis-à-vis Rs 31,595 crore in FY 2020-21. During the same period, the options ADT went up by 733% to Rs 7,860 crore from Rs 943 crore. The total turnover of commodity futures traded on the exchange declined by 15.8% to Rs 67.54 lakh crore in FY2021-22 as against Rs 80.25 lakh crore in FY20-21. In contrast, options turnover for the year went up by 746.4% to a record total turnover of Rs 20.28 lakh crore as against Rs 2.40 lakh crore in the previous year.

The Company is an affiliate member of the International Organisation of Securities Commissions (IOSCO) and is ranked amongst the top seven global commodity futures exchanges, based on traded volume in commodity futures during the calendar year 2021 (CY2021). MCX also featured among the top global commodity exchanges in terms of the number of futures contracts traded, as per the latest yearly data from Futures Industry Association (FIA).

With an aim to seamlessly integrate with the global commodities eco-system, MCX has forged strategic alliances with leading international exchanges such as CME Group and London Metal Exchange (LME). The Exchange has also signed MoUs with renowned global exchanges such as Dalian Commodity Exchange, Taiwan Futures Exchange, Zhengzhou Commodity Exchange, European Energy Exchange to facilitate co-operation in areas of sharing knowledge, expertise, education & training, etc.

In pursuit of the Atmanirbhar Bharat Mission, the Exchange has embarked upon the path of recognizing domestic bullion refiners for good delivery of Gold on Exchange platform. MCX recorded delivery of 1011 kg of Indian refined Gold valued at Rs. 493 crore via MCX empaneled domestic refiners for delivery of Gold under the existing contract specifications of Gold Mini (100 grams) futures contract during FY2021-22. The exchange also empanelled lead producers to facilitate their direct participation in price discovery and good delivery on the exchange. Two domestic refined lead producers, namely, Pilot Industries Ltd. and Gravita India Ltd., were empaneled as MCX approved brands during the FY21-22.

SEBI issued operational guidelines for participation of Mutual Funds and Portfolio Managers in commodity derivatives in May 2019 and subsequently approved few custodial service providers as custodians in the commodity space. Recently, in September 2022, SEBI permitted foreign portfolio investors to trade in cash settled commodity derivative products. Further, SEBI allowed trading of Commodity Index Options.

Mr Padala Subbi Reddy (Mr P S Reddy) was appointed as MD & CEO of the Company for a period of five w.e.f. May 10, 2019. Prior to this Mr Reddy worked as managing director and CEO of Central Depository Services (CDSL).[2]

Commodities traded include -

●       Metal - Aluminium, Copper, Lead, Nickel, Zinc

●       Bullion - Gold, Gold Mini, Gold Guinea, Gold Petal, Silver, Silver Mini and Silver Micro

●       Agro Commodities - Cotton, Crude Palm Oil, Kapas and Mentha Oil

●       Energy - Crude Oil, Natural Gas

●       Commodity indices – iCOMDEX BULLDEX®, METLDEX® and ENRGDEX® futures


In April 2022, MCX signed a consultancy agreement with Chittagong Stock Exchange Ltd., (CSE), to establish Bangladesh's first commodity derivatives exchange.[3]

MCX joined hands with other Market Infrastructure Institutions (MIIs) viz. National Stock Exchange, National Securities Depository Limited, Central Depository Services Limited and BSE’s subsidiaries India INX International Exchange and India International Clearing Corporation for setting up of MIIs consisting of International Bullion Exchange, Clearing Corporation and Depository Company at Gujarat International Finance Tec-City (GIFT) via a Holding Company i.e. India International Bullion Holding IFSC Limited (IIBS) as per the regulations issued by International Financial Services Authority (IFSCA). The Hon’ble Prime Minister, Shri Narendra Modi has launched India’s first International Bullion Exchange in July, 2022. [4]

Multi Commodity Exchange of India provides live feeds for all traded commodities and these are published on various websites like MoneyControl,[5] GoldSilverReports[6] and Economic Times[7],.

See also

Bombay Cotton Exchange

References

  1. ^ "MCX iCOMDEX Indices". www.mcxindia.com. Retrieved 13 October 2022.
  2. ^ "P S Reddy takes charge as MD, CEO of MCX". The Economic Times. Retrieved 13 October 2022.
  3. ^ Market, Capital (11 April 2022). "MCX to collaborate with Chittagong Stock Exchange for establishing derivatives platform". Business Standard India. Retrieved 13 October 2022.
  4. ^ Khanna, Sumit; Jadhav, Rajendra (29 July 2022). "India launches first international bullion exchange to bring transparency". Reuters. Retrieved 13 October 2022.
  5. ^ "Business News LIVE Today: Latest Business News, Share Market News, Economy & Finance News | Moneycontrol". www.moneycontrol.com. Retrieved 13 October 2022.
  6. ^ "Gold Silver Reports | Real Time Commodity and Stock Market Analysis". Gold Silver Reports | Real Time Commodity and Stock Market Analysis. 12 October 2021. Retrieved 13 October 2022.
  7. ^ "Business News Today: Read Latest Business news, India Business News Live, Share Market & Economy News". The Economic Times. Retrieved 13 October 2022.