Multi Commodity Exchange of India Ltd (MCX) (
BSE
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: 534091) is a India’s first recognised commodity exchange. MCX is regulated by
Securities Exchange Board of India (SEBI), which is the securities market regulator in India since 28
th 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, being Government metals and commodity exchange is highly trusted and top-rated exchange in India because of its Transparency, Extreme Liquidity, Quality Maintenance, Profits and above all, its high end security system that has been designed to protect the investments of investors made in MCX.
MCX, India's largest commodity derivatives exchange, was established in the year 2003 and is based in
Mumbai
Mumbai (, ; also known as Bombay — the official name until 1995) is the capital city of the Indian state of Maharashtra and the ''de facto'' financial centre of India. According to the United Nations, as of 2018, Mumbai is the second- ...
,
Maharashtra
Maharashtra (; , abbr. MH or Maha) is a states and union territories of India, state in the western India, western peninsular region of India occupying a substantial portion of the Deccan Plateau. Maharashtra is the List of states and union te ...
, India. MCX is one of the most advanced commodity exchanges in the country and was formed with a vision to provide a robust and transparent platform for trading and clearing commodities.
The Multi Commodity Exchange of India Limited (MCX) is a commodity and futures exchange where trading takes place for various commodities, including gold, silver, wheat, rice, cotton and sugar. It is the second-largest exchange in India by turnover.
MCX launched the MCX India Commodity Indices (MCX iCOMDEX) 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
In finance, a futures contract (sometimes called a futures) is a standardized legal contract to buy or sell something at a predetermined price for delivery at a specified time in the future, between parties not yet known to each other. The asset ...
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
CME Group Inc. (Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange, The Commodity Exchange) is an American global markets company. It is the world's largest financial derivatives exchange, and trades in asset class ...
and
London Metal Exchange
The London Metal Exchange (LME) is a futures and forwards exchange with the world's largest market in standarised forward contracts, futures contracts and options on base metals. The exchange also offers contracts on ferrous metals and precious ...
(LME). The Exchange has also signed MoUs with renowned global exchanges such as
Dalian Commodity Exchange
The Dalian Commodity Exchange (DCE) () is a Chinese futures exchange based in Dalian, Liaoning province, China. It is a non-profit, self-regulating and membership legal entity established on February 28, 1993.
Dalian Commodity Exchange trades in ...
,
Taiwan Futures Exchange
The Taiwan Futures Exchange (TAIFEX; ) was established in 1998. It offers futures and options on major Taiwan stock indices, government bond futures, equity options and 30-day CP interest rate futures.
The development of Taiwan's futures market m ...
,
Zhengzhou Commodity Exchange
Zhengzhou Commodity Exchange (ZCE; ), established in 1990, is a futures exchange in Zhengzhou, one of the four futures exchanges in China. The ZCE is under the vertical management of China Securities Regulatory Commission (CSRC).
Products
ZCE sp ...
,
European Energy Exchange
European Energy Exchange (EEX) AG is a central European electric power and related commodities exchange located in Leipzig, Germany. It develops, operates and connects secure, liquid and transparent markets for energy and related products, incl ...
to facilitate co-operation in areas of sharing knowledge, expertise, education & training, etc.
In pursuit of th
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 an
Gravita IndiaLtd., 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).
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.
MCX joined hands with other Market Infrastructure Institutions (MIIs) viz.
National Stock Exchange,
National Securities Depository Limited
National Securities Depository Limited (NSDL) is an Indian central securities depository, based in Mumbai. It was established in August 1996 as the first electronic securities depository in India with national coverage. It was established base ...
,
Central Depository Services Limited
Central Depository Services (India) Ltd. (CDSL), the first listed Indian central securities depository, was founded in 1999.
The main function of CDSL facilitates holding and transacting in securities in the electronic form and facilitates set ...
and BSE’s subsidiaries
India INX International Exchange an
India International Clearing Corporationfor setting up of MIIs consisting of International Bullion Exchange, Clearing Corporation and Depository Company at
Gujarat International Finance Tec-City
Gujarat International Finance Tec-City (GIFT City) is central business district under-construction in Gandhinagar and Ahmedabad in Gandhinagar district in Gujarat, India. It is India's first operational greenfield smart city and internationa ...
(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.
Multi Commodity Exchange of India provides live feeds for all traded commodities and these are published on various websites like MoneyControl, GoldSilverReports and Economic Times
,.
See also
*
Bombay Cotton Exchange The Bombay Cotton Exchange was a commodities exchange in Bombay (now Mumbai
Mumbai (, ; also known as Bombay — the official name until 1995) is the capital city of the Indian state of Maharashtra and the ''de facto'' financial centre ...
References
External links
{{Commodity Exchanges in India
Agricultural marketing in India
Commodity markets
Companies based in Mumbai
Commodity exchanges in India
Indian companies established in 2003
Commodity exchanges
2003 establishments in Maharashtra
Companies listed on the Bombay Stock Exchange
Companies listed on the National Stock Exchange of India