MCX

The Multi Commodity Exchange of India Limited (MCX), India’s first listed exchange, is a state-of-the-art, commodity derivatives exchange that facilitates online trading of commodity derivatives transactions, thereby providing a platform for price discovery and risk management. The Exchange, which started operations in November 2003,.

MCX offers trading in commodity derivative contracts across varied segments including bullion, industrial metals, energy and agricultural commodities, as also on indices constituted from these contracts. It is India’s first Exchange to offer commodity options contracts, bullion index futures and base metals index futures contracts. The Exchange focuses on providing commodity value chain participants with neutral, secure and transparent trade mechanisms, and formulates quality parameters and trade regulations, in conformity with the regulatory framework. The Exchange has an extensive national reach, with 588 registered members and 51,246 Authorised Persons with its presence in around 872 cities and towns across India as on 30 June 2022. MCX is India’s leading commodity derivatives exchange with a market share of about 96.4 per cent in terms of the value of commodity futures contracts traded in financial year 2022-23 (April 2022 –June 2022).

The Exchange’s flagship index series, MCX iCOMDEX, is a series of real-time commodity futures price indices, which give information on market movements in key commodities/ segments traded on MCX. The MCX iCOMDEX series consists of a Composite index, apart from three sectoral indices: the Base Metal index, the Bullion index and the Energy index, and also nine single-commodity indices: Gold, Silver, Aluminium, Copper, Lead, Nickel, Zinc, Crude Oil and Natural Gas indices.

Multi Commodity Exchange Clearing Corporation Limited (MCXCCL), a wholly-owned subsidiary of MCX, is the first clearing corporation in the Indian commodity derivatives market. The clearing corporation provides collateral management and risk management services, along with clearing and settlement of trades executed on the Exchange. The European Securities and Markets Authority (ESMA) has granted recognition to MCXCCL as a third country CCP under European market infrastructure regulation. MCXCCL, having state of art risk management system, is the central counterparty for all trades executed on MCX’s trading platform. It also provides Electronic Commodity Accounting and Receipts Tracking System through a web based portal ‘Commodity Receipts Information Systems’ (COMRIS). Further, it provides settlement guarantee to all trades executed on MCX via its Settlement Guarantee Fund (SGF).

With an aim to seamlessly integrate with the global commodities ecosystem, MCX has forged strategic alliances with leading international exchanges such as CME Group and London Metal Exchange (LME). The Exchange has also signed Memoranda of Understanding (MoUs) with renowned global exchanges viz. Dalian Commodity Exchange (DCE), Taiwan Futures Exchange (TAIFEX), Zhengzhou Commodity Exchange (ZCE) and European Energy Exchange AG (EEX) to facilitate cooperation in areas of sharing knowledge and expertise, education & training, etc. The Exchange has also tied-up with various trade bodies, industry associations and educational institutions across the country. These partnerships enable the Exchange to improve trade practices, increase awareness, and facilitate overall growth and development of the commodity market.