MCX gets SEBI nod to launch new trading platform

MCX, the country’s largest commodity exchange, has received capital market regulator SEBI approval to launch new software developed by TCS.

Earlier, the exchange was to go live with the new Commodity Derivative Platform on October 3 after conducting a mock trading on October 2.

However, SEBI had told the exchange to keep the launch in abeyance due to the case filed in the Madras High Court by the investors association Chennai Financial Markets and Accountability.

The investors body had questioned the exchange’s ability to choose the right IT service provider after two failed attempts to switch over to new platform and putting investors wealth and trading community at risk.

• Also Read: MCX: Why investors can accumulate the leader in commodity derivatives

Later, the Association also dragged SEBI into the case for being mute spectator to the development.

Pending the Court case, SEBI wanted its technical advisory panel to make sure that the software can support trade executed on the exchange before it goes live.

The exchange in a statement on Sunday said, further to SEBI communication MCX and MCX Clearing Corporation replied to SEBI on the complaint of Chennai Financial Markets and Accountability regarding the new CDP after following due process.

• Also Read: CFMA pushes for year-long MCX platform parallel run to ensure market safety

Subsequently, SEBI Technical Advisory Committee has recommended that MCX and MCX CCL may go live with the CDP and to intimate SEBI regarding the proposed date for Go Live, said MCX.

Accordingly, SEBI has withdrawn its directions to MCX and MCX CCL to keep the proposed go-live of CDP in abeyance, the exchange said without mentioning the new date for mock test and new software launch date.

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