factsheet

FACTSHEET
the facts
`1,19,941 crore
The highest daily turnover of MCX since
inception (on April 15, 2013)
84.30%#
Market share
#
`21,923 crore
Average daily turnover
5,80,000+#
Trading terminals, including CTCL
1700+#
Towns and cities - reach of MCX
who are we
Multi Commodity Exchange of India Limited (MCX) is India’s premier
commodity futures exchange regulated by the Securities & Exchange Board of
India (SEBI).
q The exchange offers:
= Online trading, and clearing and settlement of commodity
futures* transactions.
= A platform for price discovery and price risk management.
= Secure, and transparent trade mechanisms.
= A scalable technology framework.
q A public listed company with more than 100,000 shareholders, with a
majority of its shares held by institutional investors.
Commodity Futures offered:
Bullion
Gold, Silver
Base Metals
Copper, Zinc, Nickel, Lead, Aluminum
why us
The market leadership of MCX can be attributed to its:
Product and service innovation
= Domain expertise backed by extensive research has enabled it to
introduce new products regularly.
= Alliances with regional commodity associations coupled with field studies
are used to design products to cater to the needs of participants of varied
nature, sizes, and with different capabilities.
= Stakeholder engagement at every stage of a product’s life cycle to ensure
its relevance.
Energy
Crude oil, Natural gas, Brent crude oil
Agricultural commodities
Mentha oil, Cotton, Cardamom, CPO
A comprehensive list of commodity futures contracts offered by
MCX is available on its website, www.mcxindia.com.
*Commodity futures contract (popularly called commodity futures) is a standardised agreement between two parties to buy or sell a commodity of standardised quantity and quality for a price agreed
upon on a particular day with settlement occurring on a specified future date.
#As of FY 2015-16
MCX FACTSHEET | Page 2
= System automatically generates alerts
and takes pre-decided actions.
= Settlement Guarantee Fund and
Investor (Client) Protection Fund,
based on the regulator’s guidelines.
Well-designed trading system
= Aligned to the market needs.
= Scalable architecture ensures security,
reliability, flexibility, and functionality.
= Handling capacity of 40 million
transactions (orders and trades put
together) per day which is well above
the record volumes witnessed by the
exchange till date.
= Accessible through trader workstations or computer-to-computer
link (CTCL) using multiple media of
connectivity, such as NPN-POP, VSATs,
VPN, leased lines, and the Internet.
= Real time data replication to Disaster
Recovery Site in New Delhi.
Focus on developing the market
= Conducting customised awareness
programmes in association with the
regulator
and/or
local
trade
associations all over India.
= Empowering market participants with
information
required
to
take
considered decisions through:
! Release of “Dos and Don’ts”
advertisements to enlighten market
participants on the merits of trading
on regulated commodity futures
exchanges.
! Engagement with print and electronic
media for creating awareness and
sensitizing policymakers on various
issues affecting the market.
! Empowerment of market participants with relevant information
through commodity-specific hedging
brochures, monthly newsletter
(CommNews),
and
commodity
market review (Commodity Connect).
Efficient risk management
= Approved clearing banks and exchange
-designated warehouses help manage
the daily mark-to-market (MTM)
settlement at in-house clearing house,
and support physical delivery.
= Real time risk monitoring system and
adequate mechanisms track members’
financial strength, margin utilisations,
and mark-to-market losses online as
against deposits made by these
members to MCX.
SCHEMATIC REPRESENTATION OF
MCX’S TECHNOLOGICAL INFRASTRUCTURE
Primary Site
at Mumbai
Internet
MIS
MIS
OMS
Server
OMS
Server
VSAT HUB
FIREWALL
FIREWALL
FTP
MPLS Cloud
Storage
Market Operation &
Monitoring Segment
NPN-POP Network
Storage
Market Operation &
Monitoring Segment
Database
Database
CNS
Server Segment
CNS
FTP
OMS
MIS
NPN-POP Network: Nationwide Private Network
with Point of Presence
: Clearing and Settlement
: File Transfer Protocol
: Order Management System
: Market Information Server
VSAT
MPLS
PS
DRS
Higher Education (IFHE) and ITM
group of institutes for financial
literacy in commodity markets.
! Flagship certification programme
called
MCCP
(MCX
Certified
Commodity
Professional);
now
available in Hindi too.
= Sensitization of concerned stakeholders and authorities through
evidence-based policy advocacy
initiatives.
Thought leadership
= MCX has carved a niche for itself with
the backing of its leadership
team—management and members
of the Board.
= Domain
expertise,
diverse
professional
and
educational
backgrounds, decision-making skills
and commitment of the leadership
team have helped MCX excel.
= In order to reach out to the
maximum possible stakeholders,
these publications are published in
Hindi and other regional languages.
PUBLICATIONS FROM MCX
Disaster Recovery
Site at Delhi
FTP
! Tie-ups with ICFAI Foundation for
CNS
Server Segment
: Very Small Aperture Terminal
: Multi Protocol Label Switching
: Primary Site
: Disaster Recovery Site
MCX FACTSHEET | Page 3
INTERNATIONAL TIE-UPS*
Strategic alliances
= Tie-ups with international exchanges,
Indian and international trade bodies
and
associations,
corporations,
educational institutions, and R&D
centres
enable MCX to engage
stakeholders, improve trade practices,
create awareness, and facilitate
overall improvement of the Indian
commodity futures market.
Sound and sustainable business
= A debt-free public listed company
with strong fundamentals.
corporate
governance
= Strong
structure, which steers MCX to serve
and protect the long-term interests of
its stakeholders.
! Commitment to ethical business
conduct, complying with guidelines
and regulations, comprehensive
disclosures, professionalism, and
structured accountability.
! Board has a combination of
independent directors nominated/
approved by the regulator and
shareholders’ directors with high
credibility.
Co-creation of social, business value
= Studies conducted by reputed
institutes have established that MCX
plays an important role in efficient
price risk management and price
DALIAN COMMODITY EXCHANGE
LONDON METAL EXCHANGE
*All logos used here are
trademarks
of respective companies
As on 31st March, 2016
discovery, reduction in spot price
volatility, reduction in information
asymmetry, and so on.
! Study by IIM Kozhikode (2014)
found that there has been a
reduction in price elasticity in
cardamom after the introduction of
futures trading. This has helped
reduce
the
vulnerability
of
cardamom farmers.
! Joint study by IIM Calcutta and
NISTADS (2012) has established
that Mentha oil futures at MCX
facilitated the rise of India as the
major exporter of processed
mentha crystals.
! Study by the Tata Institute of Social
Sciences (2012) has established that
MCX platform has ensured stable
and fair prices for small and
medium enterprises.
! Study by UNCTAD (2009) stated that
futures market in MCX cardamom
has helped stabilize prices in the
spot market.
= MCX believes in achieving inclusive
growth and facilitating social change.
The
flagship
social
inclusion
programme
‘Gramin
Suvidha
Kendra’—a public–private partnership
with India Post—seeks to include
farmers in the modern commodity
market ecosystem so as to enhance
their
value
realization
from
agricultural activities.
MCX TRAINING
AND
CERTIFICATION CELL
Offers a certification programme
(MCX Certified Commodity
Professional, or MCCP) for pursuing
a career in the commodity
derivatives market.
GRAMIN SUVIDHA KENDRA
CROSS-SECTOR PARTNERSHIP MODEL FOR INCLUSIVE GROWTH
Ÿ Community influence and mobilisation
Ÿ Replicable and scalable platform
Ÿ Public accountability
Farmers
Ÿ Knowledge empowerment. Price
transparency and sustainable
agriculture practices.
Ÿ Market access. Quality products
and services, storage and credit.
Ÿ Overall effect. Enhanced livelihood,
aggregation and social impacts.
Reach
(as of March 2016)
3 States
25 Centres
917+ Villages
426 Branch Post Offices
31460+ Registered Farmers
The programme is designed to
provide the necessary knowledge to
acquaint participants with the
modalities of commodity derivatives
market in India.
Two modes of training are offered:
! Classroom Training Programme
! Distance-learning Training
Programme
Candidates can take the online
examination in either Hindi or
English.
email: [email protected]
MCX FACTSHEET | Page 4
how have we progressed
MILESTONES
!
!
!
Commenced
operations in
November 2003
!
2003
!
2012
2002
2005-08
Incorporated in April
2002
Was the 3rd largest
commodity futures
exchanges globally*
on the number of
contracts traded in
CY 2012*
Became India’s first
listed exchange on
March 9, 2012
!
Forged strategic
alliances with NYMEX
(part of CME Group)
!
Commodity
Transaction Tax
(CTT) imposed from
July 1, 2013
As a result of crisis at
NSEL (a subsidiary
of FTIL), (1) MCX’s
erstwhile anchor
investor, Financial
Technologies (FTIL),
declared not ‘Fit and
Proper’; (2) The FMC
2013
Recorded the
highest daily
turnover of Rs.
119941.42 crore
(single side)
Market share of
about 87% in
FY2012–13
!
!
asked PwC to
conduct a forensic
audit of MCX’s
operations since
inception—
revealed pertinent
facts
MCX underwent
significant changes
during 2013–14;
changes in top
management and
Board
Market share fell to
about 77%
* Source: Derived from Futures Industry Association’s Annual Volume Survey
!
Mr P. K. Singhal
assigned the role of
taking care of the
day-to-day
operations of the
exchange
Technology
agreement with FTIL
re-negotiated on
more equitable
terms from July 01,
2014
2014
!
!
!
!
FTIL sold its entire
stake (26%) held in
MCX between July
and September
2014
Kotak Mahindra
Bank Ltd. acquired
15% equity stake on
September 29, 2014
Mr P. K. Singhal
elevated as Joint
Managing Director
on October 14, 2014
Exchange regains
market share of
about 86% in
December 2014
Market share of
87.48% in Q4 2015
! Launch of futures
trading in Crude
mini
! MCX won the Best
Commodity
Exchange Award at
the India
International Bullion
Summit organised
by IBJA.
!
2015
!
The exchange has
been honoured with
‘Exchange Of the
Year for Investor
Education and
Awareness Award’
by the Commodity
Participants
Association of India
(CPAI)-May 2015
Overcoming many
hurdles, MCX climbs a
rung to be world’s 6th
largest commodity
futures exchange in
2015, going by the
number of contracts
traded*
2016
The exchange won the
Best Commodity
Exchange Award at
the 14th Commodity
Futures Market
Summit & Excellence
Awards, organized by
ASSOCHAM –
February 2016
Accolades
MCX has received worldwide recognition and many accolades for its pioneering efforts. The exchange today is recognized as a
thought leader and innovator across the industry.
2016 The “Best Commodity Exchange of the Year” award by ASSOCHAM
2015 - "Exchange of the Year" for 'Investor Education and Awareness' by Commodity Participants Association of India (CPAI)
- "Best Commodity Exchange" Award at the India International Bullion Summit organised by IBJA
2013 The “Best Commodity Exchange of the Year” award by Global Cotton Conference
2012 FinanceAsia awards MCX IPO as the “Best Mid-cap Equity Deal” in the entire Asia-Pacific for 2012; first exchange in Asia-Pacific to
receive this recognition
2012 MCX’s Gold Petal contract receives the FOW award for “the most innovative contract launch by an exchange” under the metals
category
2011 “Financial Inclusion Award 2011” conferred on MCX by the SKOCH Foundation
2008 Awarded the “Golden Peacock Eco-innovation Award” 2008 by the Institute of Directors
where to reach us
Mumbai, Maharashtra
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Ahmedabad, Gujarat
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Jaipur, Rajasthan
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New Delhi
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Kolkata, West Bengal
Shivanshu Mehta
Tel: +91-22-6731 8888 / Mobile: +91-99302 67616
Email: [email protected]
Komal Kanzaria
Mobile:+91-98252 22839
Email: [email protected]
Ravikant Khatri
Mobile: +91-95873 05222
Email: [email protected]
Sanjay Gakhar
Tel: +91-11-2332 0061-64 / Mobile: +91-96541 25004
Email: [email protected]
Vibhor Tandon
Mobile: +91-90514 98808
Email: [email protected]
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Lucknow, Uttar Pradesh
Sunil Dutt Mishra
Mobile: +91-97930 10333
Email: [email protected]
Hyderabad, Andhra Pradesh Samba Siva Rao
Tel: +91-40-3250 6470 / Mobile: +91-95818 29933
Email: [email protected]
Chennai, Tamil Nadu
T. G. Senthilvelan
Mobile: +91-91766 35251
Email: [email protected]
Kochi, Kerala
Anand Sheyon
Tel: +91-484-4141222 / Mobile: +91-94471 62122
Email: [email protected]
Bangalore, Karnataka
N. K. Muthappa
Tel: +91-80-40407507 / Mobile: +91-99002 45600
Email: [email protected]
Corporate address: Multi Commodity Exchange of India Limited, Exchange Square, Chakala, Andheri (East), Mumbai - 400 093,
India. Tel. No. 91-22-6731 8888, CIN: L51909MH2002PLC135594, [email protected], www.mcxindia.com
©MCX 2016. All rights reserved.
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