MCX

It is the leading commodities exchange in India, which is based on the value of commodity futures contracts being traded. The company received permanent recognition from the Government of India as on September 26, 2003, to facilitate countrywide online trading, clearing and also the settlement operations of commodities futures transactions. Also, the total value of commodity futures contracts traded ended on December 31, 2010, and the fiscals were 2010, 2009 and 2008 were INR 68,893.18 billion, INR 63,933.03 billion, INR 45,880.95 billion and INR 31,259.59 billion, respectively. As per the data of the FMC, such amounts represent 83.3%, 82.3%, 87.4%, and 76.9% of the Indian commodity futures sector in terms of the value of commodity futures contracts were explicitly traded during such periods. As of December 31, 2010, it also offered to trade in 43 commodity futures based on the contract specifications, from various spectrums of classes including ferrous, bullion, and non-ferrous metals, weather, energy, and agriculture. Also, the same underlying physical asset that is traded under different contract specifications is known as a separate commodity future. Such as, Gold, Gold Guinea, and Gold Mini, and all are gold futures contracts that are treated as the three different commodities in deriving the total number of commodity futures that are traded on their Exchange. Also as of December 31, 2010, it had 2,107 members on their Exchange’s platform, and along with 180,000 terminals including CTCL being spread over 1,139 cities and towns across the country. Their technology infrastructure includes central matching engines, high-end Intel servers, channel-based storage area networks, and networking equipment for offering the secured connectivity via very small aperture terminals (or VSATs), virtual private networks (or VPN), leased lines and the internet. It has been certified under the ISO 9001:2008 for the quality management standards and ISO 14001:2004 for the environmental management systems concerning both developing and providing services for online trading, clearing and settlement facilities, and the risk monitoring of commercial derivatives market. It has also achieved the ISO/IEC 27001:2005 certification that is the global benchmark for information security management systems. It has also entered into arrangements with many educational institutions and commodities trade organizations for educating existing and potential market participants on several dynamics of the commodities market, and offering management development programs for decision-makers and industry leaders in the Indian commodities markets and offering the training and certification programs concerning to the Indian commodities market. It has relationships with, several institutions, the Department of Economics (Autonomous) the University of Mumbai, Symbiosis Institute of International Business, FT Knowledge Management Company Limited, Takshashila Academia of Economic Research Limited and NCUI NCCT – VAMNICOM. Besides, it also entered into agreements with National Bulk Handling Corporation Limited (or NBHC) for the provision of services, while in connection with warehousing and the physical deliveries for the settlement of futures contracts traded on their Exchange.

Subsidiaries:

• MCXCCL: It was incorporated as on August 1, 2008, under the Companies Act. Its primary business is, to facilitate, set up and carry on the business of both the clearing & settlement of commodity and commodity derivatives and the other commodities and tools of all kinds and to start, facilitate, promote, assisting, undertaking and managing all activities concerning to commodity exchanges, commodity markets, securities, commodity derivatives exchanges, warehouse, currencies, custodial and depository services.
• SME: It was incorporated on September 14, 2010, under the Companies Act. Its primary business is to create, operate, maintain and manage the facilities in India and overseas enabling the members, and their authorized agents and constituents and the other participants to clear, transact, and settle trades done on all the sectors mainly for small and medium enterprises segment, in cash, ready, spot, swaps, forwards, futures and options markets for offering accessibility to the markets and support services to many members.

 

Some of the Milestones:

• May 28, 2002: It was converted into a public limited company, and the company name was changed to the Multi Commodity Exchange of India.
• September 26, 2003: It received permanent recognition from the Ministry of Consumer Affairs, Food and Public Distribution, Government of India.
• November 29, 2004: Also, the MoU entered among FTIL and NAFED to create a national-level agricultural spot exchange.
• June 7, 2005: It started a composite commodity futures index (MCX-COMDEX) by the company.
• June 5, 2006: It signed a license agreement with NYMEX.
• July 24, 2006: It signed an agreement with Euronext.LIFFE.
• May 23, 2007: It obtained ISO/IEC 27001: 2005 certification.
• November 30, 2009: It launched “Exchange of Futures for Physicals” (or EFP) transactions.
• December 3, 2009: It is the sixth-largest commodity futures exchange globally in terms of the no. of contracts being traded on the exchange for the period from January to June 2009.
• 2010:

• Also, India’s first exchange to report its sustainability performance since Financial Year 2009–10.
• It received the “Best Commodity Exchange of the Year” award from the Bombay Bullion Association.
• It won the Indy’s award under the category ‘Best in Corporate Social Responsibility practices.’
• It also conferred with the “Financial Inclusion Award 2011” from the SKOCH Foundation.

• 2012:
• It is the world’s 3rd largest commodity futures exchange in terms of the numbers of contracts traded in 2012.
• It became India’s first listed exchange as on March 9, 2012.

Some of the Achievements:

• 2008: It received the “Best Bullion Exchange of the Year” award from the Bombay Bullion Association.
• 2009: It won the “Sankalp Award” for Agriculture and Rural Innovation.
• 2010: It won the NASSCOM Foundation Social Innovation Honours 2010.
• 2010: It received the FICCI Socio-Economic Development Foundation (or SEDF) Corporate Social Responsibility Award 2009-10.
• 2011: It won the “Financial Inclusion Award 2011” from the SKOCH Foundation.
• 2012: FinanceAsia awards MCX IPO as the ‘Best Midcap Equity Deal’ in whole Asia-Pacific for 2012; and 1st exchange in the Asia Pacific to receive such recognition.
• 2013: It won the ‘Best Commodity Exchange of the year’ award by the Global Cotton Conference.