Multi Commodity Exchange of India Limited, also known as the Multi Commodity Exchange of India (MCX), is an Indian commodity exchange. It was established in 2003 and is currently based in

Mumbai Mumbai ( ; ), also known as Bombay ( ; its official name until 1995), is the capital city of the Indian state of Maharashtra. Mumbai is the financial capital and the most populous city proper of India with an estimated population of 12 ...

. It is India's largest

commodity derivative In finance, a derivative is a contract between a buyer and a seller. The derivative can take various forms, depending on the transaction, but every derivative has the following four elements: # an item (the "underlier") that can or must be bou ...

s exchange. The average daily turnover of commodity futures contracts increased by 26% to ₹32,424

crore Crore (; abbreviated cr) denotes the quantity ten million (107) and is equal to 100 lakh in the Indian numbering system. In many international contexts, the decimal quantity is formatted as 10,000,000, but when used in the context of the India ...

during FY2019-20, as against ₹25,648 crore in FY2018-19. The total turnover of commodity futures traded on the Exchange stood at ₹83.98 lakh crore in FY2019-20. MCX offers options trading in gold and

futures trading In finance, a futures contract (sometimes called futures) is a standardized legal contract to buy or sell something at a predetermined price for delivery at a specified time in the future, between parties not yet known to each other. The item tr ...

non-ferrous metals In metallurgy, non-ferrous metals are metals or alloy An alloy is a mixture of chemical elements of which in most cases at least one is a metal, metallic element, although it is also sometimes used for mixtures of elements; herein only meta ...

, bullions,

oil An oil is any nonpolar chemical substance that is composed primarily of hydrocarbons and is hydrophobic (does not mix with water) and lipophilic (mixes with other oils). Oils are usually flammable and surface active. Most oils are unsaturate ...

natural gas Natural gas (also fossil gas, methane gas, and gas) is a naturally occurring compound of gaseous hydrocarbons, primarily methane (95%), small amounts of higher alkanes, and traces of carbon dioxide and nitrogen, hydrogen sulfide and helium ...

, and agricultural commodities (e.g., mentha oil,

cardamom Cardamom (), sometimes cardamon or cardamum, is a spice made from the seeds of several plants in the genus (biology), genera ''Elettaria'' and ''Amomum'' in the family Zingiberaceae. Both genera are native to the Indian subcontinent and Indon ...

palm oil Palm oil is an edible vegetable oil derived from the mesocarp (reddish pulp) of the fruit of oil palms. The oil is used in food manufacturing, in beauty products, and as biofuel. Palm oil accounted for about 36% of global oils produced from o ...

, and

cotton Cotton (), first recorded in ancient India, is a soft, fluffy staple fiber that grows in a boll, or protective case, around the seeds of the cotton plants of the genus '' Gossypium'' in the mallow family Malvaceae. The fiber is almost pure ...

). MCX was among the top global commodity exchanges in terms of the number of

futures contract In finance, a futures contract (sometimes called futures) is a standardized legal contract to buy or sell something at a predetermined price for delivery at a specified time in the future, between parties not yet known to each other. The item tr ...

s trade, the latest yearly data from Futures Industry Association (FIA) showed. MCX launched the MCX India Commodity Indices (MCX iCOMDEX) series on December 20, 2019, which conform to the global best practices set by the International Organisation of Securities Commissions (IOSCO). iCOMDEX series consists of iCOMDEX Composite, iCOMDEX Base Metals, iCOMDEX Bullion, iCOMDEX Gold, iCOMDEX Copper and iCOMDEX Crude Oil. Subsequently, MCX received regulatory approval for launch of futures contracts on MCX iCOMDEX Bullion and Base Metal indices. The exchange also set up a web-based application "ComRIS" (Commodity Receipts Information System) in order to maintain an electronic record of commodities deposited at the Exchange accredited warehouses and ensure flow of real time information from the warehouses. SEBI issued operational guidelines for participation of Mutual Funds and Portfolio Managers in commodity derivatives in May 2019 and subsequently, approved few custodial service providers as custodians in the commodity space. In February 2012, MCX held its

initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investm ...

, offering 6.5 million

shares In financial markets, a share (sometimes referred to as stock or equity) is a unit of equity ownership in the capital stock of a corporation. It can refer to units of mutual funds, limited partnerships, and real estate investment trusts. Sha ...

and raising $134 million in funds for the company, making the company India's only publicly listed exchange. From 28 September 2015, MCX is being regulated by the Securities and Exchange Board of India (SEBI). Earlier MCX was regulated by the Forward Markets Commission (FMC), which got merged with the SEBI on 28 September 2015. In May 2019, Padala Subbi Reddy was hired as Managing Director and CEO, having previously served in those positions at

Central Depository Services Central Depository Services (India) Ltd. (CDSL) is an Indian central securities depository, founded in 1999. CDSL is the largest depository in India in terms of number of demat accounts opened. In February 2022, CDSL became the first depositor ...

, an Indian depository for

securities A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...

. The efforts that started in the fourth quarter of FY 2018–19 to migrate to 'Compulsory Delivery-based' contracts in all base metals were successfully completed in FY 2019–20. The launch of indigenously benchmarked deliverable futures contracts of Copper, Aluminium, Zinc, Lead and Nickel on MCX, has paved the way for the Indian market prices for metals to be discovered on an exchange platform in a transparent manner. This fulfills an important step towards development of domestic benchmarks which reflect domestic market fundamentals, while the delivery standards are in tune with international standards. Paving the way for introduction of Options with 'commodities' as underlying, the Government of India issued a notification on October 18, 2019, which widens the scope of commodity derivatives traded in recognised exchanges. Following this, SEBI permitted stock exchanges to launch 'Option in goods' in their commodity derivatives segment, in addition to existing 'options on commodity futures'. MCX has launched Gold Mini Options with Gold Mini (100 grams) bar as the underlying, and plans to launch Silver Mini 5 kg 'option in goods' contract soon. In April 2022, the MCX collaborated with the

Chittagong Stock Exchange The Chittagong Stock Exchange () is a stock exchange based in the port city Chittagong, Bangladesh. It is one of the twin financial hubs of the country, alongside the Dhaka Stock Exchange. Established in 1995, the exchange is located in the A ...

, (CSE), to establish Bangladesh's first commodity exchange. MCX also provides live feeds for all traded commodities and these are published on various websites like MoneyControl, GoldSilverReports and Economic Times.Economic Times https://economictimes.indiatimes.com/

References

External links

{{Commodity Exchanges in India Agricultural marketing in India Commodity markets Companies based in Mumbai Commodity exchanges in India Indian companies established in 2003 Commodity exchanges 2003 establishments in Maharashtra Companies listed on the Bombay Stock Exchange Companies listed on the National Stock Exchange of India

See also

References

External links