29-Sep-2023
2 mins read
Following the announcement of a new commodity derivative platform (CDP) by the Multi Commodity Exchange (MCX), SEBI, the capital market regulator, has recommended postponing its launch. MCX confirmed this development in an official statement, attributing the delay to technical issues. In the meantime, MCX will proceed with the platform’s mock sessions.
Detailed Insights on the Communication
MCX, referencing the SEBI regulations 2015, mentioned receiving an email from SEBI on September 28, 2023, which highlighted concerns from the Chennai Financial Markets and Accountability (CFMA). Notably, there are pending writ petitions by CFMA on CDP at the Madras High Court. SEBI plans to discuss the technical aspects of the matter in an upcoming Technical Advisory Committee meeting. Until further clarity, the “Go-Live” date for the CDP has been advised to remain on hold. However, MCX is prepared to initiate the platform and will continue its mock tests as they await SEBI’s directives.
Important Dates and Partnerships
MCX had originally planned to unveil the CDP on October 3, 2023, with a mock session set for October 2, 2023. Tata Consultancy Services (TCS) is the technological partner for this new platform, and the mock session is anticipated to run seamlessly.
A Glimpse into MCX’s Tech History
This isn’t MCX’s first venture into adopting a new tech platform. Past endeavours faced technical challenges, which resulted in an extended contract with 63 Moons earlier this year. This extension, secured until December 2023, came at a cost of Rs 250 crore for the second half of 2023.