MCX shares crash on cancellation of mock trading in new software

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Shares of the largest commodity derivatives exchange in the country MCX It crashed four percent to 1,563 rupees on Friday after the exchange canceled sham trading on the new software it had developed. Tata Advisory Services. The exchange has been conducting experiments over the past few days to ensure stability during peak trading and to get investors accustomed to the new software.

Last December, the exchange renewed its agreement with existing service provider 63 Moon Technologies (formerly Financial Technologies) for two quarters. The service agreement with the former promoter of the exchange expires in the current June quarter.

The exchange focused on TCS as a resource for the development of the new platform in February 2021.

“The exchange proposed a mock trading session on June 22, from 5pm to 11:30pm which has been cancelled,” mcx said in a bulletin on Thursday. Earlier this week, the exchange proposed a mock trading session on June 19 as well but canceled the same session.

PS Reddy, Managing Director, MCX, said on a recent call with investors that members are engaging in sham trading and interest has been rising. He said that the second stage of this type of simulated image has been occurring during the past three months, and we hope that this month the intensity will increase between the members and that the exchange will begin.

penalty clause

In response to a question about whether there is any penalty clause on TCS in case of delay, he added yes, there are penalty clauses and the penalty will be clearly applied, but then each penalty has a maximum limit.

The Software Support and Maintenance Agreement between 63 Moons and MCX, which was originally amended on September 27, 2014, and was scheduled to expire on September 30, 2022, is for an additional three months Until December last year.

Although phantom trading has been canceled on two past occasions, this approaching deadline has raised concerns about the exchange’s future course of action, an analyst said.

He added, “Worse than that, the exchange must renew the contract with 63 Moons for another quarter for a higher fee.”

pointer Sensex shares fell 260 points, or 0.41 percent To settle at 62,979 points, while NSE Nifty declined 106 points, or 0.56 percent, to close at 18,665 points.