MCX may write-off payments made to London firm for spot trading software

PALAK SHAH Mumbai | Updated on October 04, 2021

The UK vendor has dragged the bourse to arbitration

The Multi Commodity Exchange plans to write-off the nearly ₹20 crore paid to London-based software developer PESB for creating a spot commodity exchange platform, sources told BusinessLine. The plan is under discussion and senior officials are deliberating on forming a policy, which can be put up to the board for approval, the sources said.

In 2019, BusinessLine was the first to report on the payments controversy surrounding the MCX spot exchange software. The contract to PSEB became controversial after alleged hush-hush payments by MCX in 2018. Three years have passed but the firm could not deliver the software and instead dragged MCX to arbitration proceedings in Singapore.

MCX in a spot on trading

The lack of a spot exchange trading software has put MCX on the backfoot. SEBI recently gave MCX the go-ahead to launch spot gold trading. While the BSE last week announced plans to launch spot gold trading by Diwali, MCX, with a monopoly in gold futures and options, is still talking to vendors for software that will enable it to launch spot trading. India imports nearly 1,000 tonnes of gold annually and hence a spot exchange could intensify the battle for market share among Indian bourses, experts said.

Senior level exits

Even as MCX is changing its trading technology and shifting its vendor base to TCS from 63Moons Technologies, its chief technology officer (CTO) Manav Jain exited. Jain will be appointed a consultant for MCX, and will be based in the US, sources said.

Also read: TCS bags deal from MCX to transform core trading systems

Anand Iyer, who has worked as senior director, operations and technology at Dun & Bradstreet and chief information officer at NCDEX, is the frontrunner for the post of CTO at MCX, the sources said. MCX is also scouting for a chief operating officer and one Manoj Jain will join in November, sources said.

Neetu Juneja, VP and Head of Investor Protection Fund at MCX, too, has put in her papers, the sources said. MCX did not respond to queries sent by BusinessLine.

Published on October 03, 2021

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