MCX shares hit fresh high as trading starts on new platform

Shares of Multi Commodity Exchange of India (MCX) rallied 5% in intraday trade to hit a fresh all-time high on the back of sustained rally. The stock has risen as much as 15% in the last eight sessions after it received approval from the SEBI technology panel to launch its much-awaited web-based commodity derivatives platform (CDP). The sentiment was further boosted after the country's largest commodity derivatives exchange began trading on its new software platform today.

Early today, MCX shares opened higher for the second straight session at ₹2,113.95 against the previous closing price of ₹2,110.55 on the BSE. During the session so far, the stock gained 5% to hit a new record high of ₹2,216.90, breaching its previous all-time high of ₹2,183.85 touched in intraday trade on October 11, 2023.

At the time of reporting, the midcap stock was up 3.8% at ₹2,191.30, with 1.5 lakh shares changing hands over the counter as compared to the two-week average volume of 1.03 lakh stocks. The market capitalisation stood at ₹11,175 crore.

The stock has risen 72% in less than 5 months after it hit its 52-week low of ₹1,289.20 on May 22, 2023. The counter gained nearly 68% in a year and 50% in the calendar year 2023. It has added 48% in six months and 25% in a month.

In an exchange filing on October 11, 2023, MCX said it would go live with the new commodity derivative platform (CDP) on October 16. Before the launch, the exchange conducted mock trading on October 15 to allow members to participate and validate setup and connection during the session.   

The capital markets regulator Securities and Exchange Board of India (SEBI) had given its approval to the launch of MCX's Commodity Derivative Platform on October 9, 2023. The SEBI "abeyance" order came following a complaint from Chennai Financial Markets and Accountability (CFMA) regarding the new CDP. 

SEBI gave its approval to the launch of MCX's new software platform on October 9, 2023. The SEBI "abeyance" order came following a complaint from Chennai Financial Markets and Accountability (CFMA) regarding the new CDP. The matter involved technical issues and was discussed in the SEBI Technical Advisory Committee meeting. 

MCX is the leading commodity derivatives exchange in India with a market share of about 96.7% in terms of the value of commodity futures contracts traded in FY23.

In October 2020, MCX announced plans to develop a new trading platform, and TCS was selected as the vendor to help it build a new technology core, transforming its trading as well as post-trade functions. In June 2023, MCX extended a software support deal with 63 Moons Technologies due to further delay in the delivery of the trading software by TCS. The exchange renewed its contract for the third time with 63 Moons for a period of six months, beginning July 1, 2023, for ₹250 crore, compared with ₹81 crore for the first six months of the year.

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