The Securities Exchange Board of India has ‘advised’ Multi Commodity Exchange of India (MCX) to keep its new commodity derivative platform launch in abeyance, the exchange platform said in a letter to the Bombay Stock Exchange.
In a letter to the Bombay Stock Exchange, the MCX said it received a mail from the market regulator from the Chennai Financial Markets and Accountability (CFMA) regarding the new platform. MCX informed the BSE that writ petitions filed by the CFMA on the commodity derivatives platform is pending before the Madras high court for disposal.
“The Regulator has informed that since the matter involves technical issues, the same would be discussed in the SEBI Technical Advisory Committee meeting, which would be held shortly. Meanwhile, SEBI has advised the Exchange to keep the proposed Go-Live of CDP in abeyance”, the letter by MCX stated, adding that the mock tests will continue to be held until further directions from SEBI.
Earlier, this week, MCX had informed that its new commodity derivatives platform will go live on October 3.
“In terms of the provisions of the Rules, Bye-Laws and Business Rules of the Exchange and in continuation of earlier circular no. MCX/TECH/624/2023, dated September 18, 2023, members of the Exchange are notified as under: Exchange will go live with new Commodity Derivatives Platform with effect from Tuesday October 03, 2023”, MCX had said in its circular on Wednesday.
The market regulator's intervention comes as CFMA asked SEBI to ensure that MCX had required technical support.
What is MCX?
The Multi Commodity Exchange of India Ltd (MCX) is a commodity derivatives exchange for online trading of commodity derivatives transactions, thereby providing a platform for price discovery and risk management. The exchange started operations in November 2003 and operates under the regulatory framework of Securities and Exchange Board of India (SEBI).