The Multi Commodity Exchange of India Limited (MCX), India’s first listed exchange, is a state-of-the-art, commodity derivatives exchange that facilitates online trading, and clearing and settlement of commodity derivatives 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).
MCX offers trading in varied commodity futures contracts across segments including bullion, industrial 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 671 registered members and 51,148 Authorised Persons with its presence in more than 1200 cities and towns across India as on 30 June, 2017. MCX is India’s leading commodity derivatives exchange with a market share of 89.9 per cent in terms of the value of commodity futures contracts traded in Q1, FY 2018.
To ease participation, the Exchange offers facilities such as calendar spread facility, as also EFP (Exchange of Futures for Physical) transactions which enable 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 MCXAgri, MCXEnergy, MCXMetal and Rainfall Indices. MCX has been certified with three ISO standards, ISO 9001:2008 Quality Management System, ISO 27001:2015 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 centres 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 it’s 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 program in partnership with India Post, seeks to enhance farmers’ value realization from agricultural activities.