63 Moons has dropped out of talks with MCX to provide software and maintenance support after end of this month.
MCX and 63 Moons entered into software support and maintenance agreement in September 2014 and this would end this month.
MCX did not renew the contract and hence the right to continue to use the Exchange Technology software with no access to source code to rectify issues or bugs that may arise and will be subject to any regulatory restriction, said 63 Moons in a statement on Monday.
MCX will not be entitled to receive any support on the Exchange Technology software if the trading or settlement system halts for any reason. No work around by any person is possible in issues arising in the Exchange platform with no access to source code to MCX, it added.
Talks on new service agreement
MCX initiated discussions with 63 Moons for acquiring IP (intellectual property) licence of Exchange Technology for self-use even before the expiry of the service agreement and also initiated discussions for new service agreement after the expiry of existing technology service agreement, said 63 Moons.
The discussion with 63 Moons for a new agreement started in October 2020 and the latest communication from MCX seeking clarification for negotiation was received last January and was responded same month, said 63 Moons.
However, MCX floated a public Request for Proposal (RFP) which opened in October 2020 and closed in December 2020.
As 63 moons was already in discussion with MCX on new service agreement, it will be imprudent to quote again by way of RFP response as both are for the same set of technology platform. The commercials and the technology features already known to MCX and hence there was nothing new to quote in RFP, said 63 Moons.
Hence, it is incorrect to say that 63 Moons did not participate in RFP as discussion on the commercials were going on and nothing new was there to quote in RFP, it said.