Traders work on the trading floor of the Multi Commodity Exchange of India in Mumbai, India (Photographer: Amit Bhargava/Bloomberg News)

MCX Says Confident Of Maintaining Liquidity Despite Lull In Agri Contracts

MCX India Ltd., the country’s largest commodity exchange, said it is confident of maintaining liquidity in existing contracts despite agri-commodities remaining subdued.

The exchange recently launched non-agri commodities options for silver, copper, zinc and crude oil after launching gold contracts back in October.

The Securities and Exchange Board of India allowed market making in commodity options in order to boost volumes in this segment. “We have seen good increase in the bullion contracts,” Mrugank Paranjape, managing director and chief executive officer, MCX told BloombergQuint in an interview. “The crude contracts are already clocking over Rs 200 crore on a regular basis daily.”

He said there no immediately plans to enter any equities, debt or interest rate derivatives as of now. He also assured that the exchange has found a solution to the recent technical glitch that caused the bourse to halt trading twice in a day. “We are confident it [glitch] will not repeat again.”

Key highlights of MCX’s first quarter performance

  • Revenue up 24 percent to Rs 73 crore.
  • Net profit down 77 percent to Rs 6 crore.
  • Exceptional loss of Rs 24 crore in current quarter.
  • EBITDA doubled to Rs 26 crore.
  • Margin at 35.6 percent versus 22 percent.