MCX gets SEBI tech panel nod to launch new derivatives platform; check details here

Multi Commodity Exchange of India or MCX on Sunday said that it has received the requisite approval from the Securities and Exchange Board of India's (SEBI) tech panel to launch its new web-based commodity derivatives platform (CDP). 

"Subsequently, SEBI technical advisory committee has recommended that MCX and MCXCCL may Go-Live with the CDP and to intimate SEBI regarding the proposed date for Go Live," MCX said in an exchange filing.

The SEBI tech panel approval comes days after the capital markets regulator urged MCX to put on hold its proposed go-live of the new commodity derivatives platform planned for October first week. The capital markets regulator had said that the decision to put MCX's proposed go-live of the new CDP on hold due to technical issues, as per a filing with the bourses. 

"As the Exchange is ready and keen to go-live as soon as permitted, the Exchange will continue to conduct CDP mock tests pending further directions in the matter from SEBI. This intimation will also be available on the website of the Company at https://www.mcxindia.com/," it added.

SEBI's order came after investor group Chennai Financial Markets and Accountability (CFMA) asked it to ensure MCX had the required technical support and a public interest litigation was filed in the Madras High Court in December last year.

SEBI informed MCX that CFMA forwarded a letter dated September 27 about the new platform. Since it involved "technical issues", it will take up the matter in its meeting, MCX said in a filing. 

However, SEBI has now withdrawn its order and asked the company to propose a 'go-live' date on new platform. MCX had earlier said that its commodity derivatives platform would go live on October 3. The company said in yet another filing that the new CDP platform would help members in the realms of risk management, collateral management and settlement of related services to members and market participants. 

As of Friday, shares of MCX were trading 1.03 per cent up at 949.55 apiece on the Bombay Stock Exchange (BSE).