MCX is hopeful about launching new commodity products
The Multi Commodity Exchange of India Limited (MCX)is steadily moving forward with a vision to become the ‘Exchange of Choice’ in the commodity ecosystem and financial markets. The Exchange was launched by India’s technocrat Jignesh Shah in 2003.
MCX is geared up for the launch of options trading in commodities and currency derivatives. Mrugank Paranjape, MCX’s MD and CEO, stated that the exchange is expecting a nod from market regulator SEBI for options trading in commodities. He also added that MCX is just waiting for the regulator’s approval.
MCX has invited request for proposals (RFP) from four exchange technology service providers. With RFP, the exchange can draw comparisons on the capabilities of multiple suppliers.
Successfully heading India’s largest commodities exchange, Paranjape indicated, “While options can be launched using the current technology, we are exploring the possibility of engaging a new service provider for currency and have called for RFP.”
Indian technocrat Jignesh Shah, the former promoter of MCX, founded Financial Technology (India) Limited (FTIL) in 1995. Itpioneered a seamless end-to-end exchange system called the Exchange Technology Framework Product Suite (ETFPS) andwill remain the official technology service provider for MCX till 2022.
Paranjape specified, “We have tested the technology (provided by FTIL) to the best of our ability to handle the high volumes expected to be generated…and we found it absolutely safe to use.”
He concluded on a positive note saying that MCX looks forward to try hands at launching trading in currency, seizing the title of being the ‘market leader’, as always.