Mumbai: In the first indication that entails diversifying into new trading segments like equity cash and equity, currency and debt derivatives , MCX, the country’s largest commodity derivatives exchange, has invited proposals from technology vendors for exchange technology solutions as a multi-year agreement with current provider 63 moons concludes in September 2022. :
The request for proposals issued on October 17 says that while the solutions system will initially be used for commodity derivatives trading, it needs to be “extensible” to commodity spot, equity and equity related derivatives , debt , currency derivatives and interest rate derivatives in order to “achieve” the “vision” of MCX to become a universal exchange. The cut off date for the submission of the request for proposal or bids is November 20, 2020.
Under the current arrangement, it has leased the technology , and any tweaks or use for other segments , like equity etc, entail having a separate licensing arrangement with the vendor. MCX pays a fixed and variable cost to the current vendor. Essentially, the source code lies with the technology vendor and not with the bourse.
63 moons, the erstwhile Financial Technologies, founded MCX back in 2003. After a payment crisis in its subsidiary NSEL surfaced in 2013, it was forced to sell stake in MCX by then regulator Forward Markets Commission. It completely exited the bourse in 2014, selling 15% stake to Kotak Mahindra Bank.
MCX enjoys a 95% market share providing trading platform in metals and energy. It is a publicly listed company, with the share closing at 1741 on Friday. As a universal -enabled exchange it will compete with the likes of NSE and BSE.