Shares of Multi Commodity Exchange (MCX) fell over 3 percent on Friday following the cancellation of its mock trading session for the new commodity derivative platform. In a circular released on Thursday, MCX announced the cancellation of the proposed mock trading session on 22 June. The new trading platform is set to be implemented from July 1, but the MCX has already cancelled two previous mock trading sessions. The exchange had earlier announced these mock sessions to familiarize members with the new trading platform. The company had encouraged members to participate actively to prevent any issues on the go-live date.
Following the announcement, MCX’s share price dropped by 3.12 percent to settle at INR 1570.45 on the Bombay Stock Exchange (BSE), and it fell by 3.28 percent on the National Stock Exchange (NSE) to end at INR 1568.80. Deepak Jasani, head of retail research at HDFC Securities, stated that the stock price fell on 23 June after media reports confirmed the cancellation of the mock training session on 22 June. Jasani also declared that several more mock sessions would take place, and next week would provide a better understanding of the system’s transition to new technology. The street is keeping an eye on whether the MCX will smoothly transition to the new software.
The MCX has extended its agreement with 63 Moons, the software support and maintenance provider, until June 2022. However, Tata Consultancy Services (TCS) was selected as the vendor for the development of the new commodity derivative platform in February 2021. The Multi Commodity Exchange of India Limited is the country’s first listed exchange that grants trading and online trading of commodity derivative transactions. The exchange began operating in November 2003.
