MCX-SX fails to do any trade on Monday; just one on Tuesday

Suresh P Iyengar Mumbai | Updated on April 01, 2014

With uncertainty looming large, brokers and investors seem to be deserting the MCX Stock Exchange (MCX-SX).

The bourse failed to attract even a single trade on its platform on Monday. The currency and interest futures of the exchange were shut on Monday and Tuesday due to Gudi Padwa and the financial year-end closing for banks.

The lacklustre performance continued on Tuesday. MCX-SX managed to trade only two shares of Reliance Industries on the exchange’s platform, recording a total turnover of ₹1,884.

The trading volumes on MCX-SX have been on a constant decline since group company National Spot Exchange Limited defaulted on trade settlements worth ₹5,600 crore.

But an MCX-SX spokesperson said that “volumes across exchanges were low on account of two bank holidays. This led to no trades on Monday. However, we have witnessed trades on Tuesday, though they are lower than the average.”

BSE/NSE turnover

On the BSE, turnover was down on Monday at ₹2,614 crore against ₹2,923 crore recorded on Friday. However, on the NSE it was up at ₹14,874 crore on Monday against ₹13,592 crore.

On Tuesday, turnover on the BSE and NSE was down 3 per cent and 10 per cent at ₹2,523 crore and ₹13,381 crore, respectively.

Refuting the suggestion that brokers are moving away from MCX-SX, the spokesperson said the exchange has managed to register marginal growth in the currency derivative segment’s volumes since January. “In fact, in interest-rate futures, we are holding a solid No 2 position. We will announce measures to arrest the fall in equity volumes soon,” he said.

“The exchange is in the process of modifying the LES (liquidity enhancement) scheme as a part of reviewing cost and to make it more effective,” he added.

The drop in trading interest on MCX-SX comes at a time when the exchange extended the closing of a ₹545-crore rights issue by a month on request from participating banks.

Published on April 01, 2014

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