Multi Commodity Exchange

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For the MCX coaxial connector, see MCX connector. "MCX" is also the roman numeral for 1110.

Multi Commodity Exchange of India Ltd

Type

Public

Traded as

BSE: 534091

Industry

Business services

Founded

2003

Headquarters

Mumbai, India

Key people

Lamon Rutten, MD and CEO

Products

Options/futures exchange

Revenue

Rs 104.39 crore (20052006)

Website

www.mcxindia.com

Multi Commodity Exchange of India Ltd (MCX) (BSE: 534091) is an independent commodity exchange based in India. It was established in 2003 and is based in Mumbai. The turnover of the exchange for the fiscal year 2009 was US$ 1.24 trillion, and in terms of contracts traded, it was in 2009 the world's sixth largest commodity exchange. ([1]) MCX offers futures trading in bullion, ferrous and non-

ferrous metals, energy, and a number of agricultural commodities (mentha oil, cardamom, potatoes, palm oil and others). In 2011, MCX has taken the fifth spot among the global commodity bourses in terms of the number of futures contracts traded. Based on the latest data from Futures Industry Association (FIA), during the period between January and June this year, about 127.8 million futures contracts were traded on MCX.[1] MCX has also set up in joint venture the MCX Stock Exchange. Earlier spin-offs from the company include the National Spot Exchange, an electronic spot exchange for bullion and agricultural commodities, and National Bulk Handling Corporation (NBHC) India's largest collateral management company which provides bulk storage and handling of agricultural products. In February 2012, MCX has come out with a public issue of 6,427,378 Equity Shares of Rs. 10 face value in price band of 860 - 1032 Rs. per equity share to raise around $134 million. It is the first ever IPO by an Indian exchange.[2] It is regulated by the Forward Markets Commission.

MCX is India's No. 1 commodity exchange with 83% market share in 2009 The exchange's main competitor is National Commodity & Derivatives Exchange Ltd ([2]) Globally, MCX ranks no. 1 in silver, no. 2 in natural gas, no. 3 in crude oil and gold in futures trading ([3])

The highest traded item is gold. MCX has several strategic alliances with leading exchanges across the globe As of early 2010, the normal daily turnover of MCX was about US$ 6 to 8 billion MCX now reaches out to about 800 cities and towns in India with the help of about 126,000 trading terminals

MCX COMDEX is India's first and only composite commodity futures price index

METAL

BULLION

Aluminium, Copper, Lead, Nickel, Steel Long (Bhavnagar), Steel Long (Govindgarh), Steel Flat, Tin, Zinc

Gold, Gold HNI, Gold M, i-gold, Silver, Silver HNI, Silver M,, Silver Micro

FIBER

ENERGY

Cotton L Staple, Cotton M Staple, Cotton S Staple, Cotton Yarn, Kapas, Jute

Brent Crude Oil, Crude Oil, Furnace Oil, Natural Gas, M. E. Sour Crude Oil, ATF, Electricity(Now delisted), Carbon Credit

SPICES

PLANTATIONS

Cardamom, Jeera, Pepper, Red Chilli, Turmeric, Arecanut, Cashew Kernel, Coffee (Robusta), Rubber Cumin Seed, Coriander

PULSES

PETROCHEMICALS

Chana, Masur, Yellow Peas, Tur, Urad

HDPE, Polypropylene(PP), PVC

OIL & OIL SEEDS

Castor Oil, Castor Seeds, Coconut Cake, Coconut Oil, Cotton Seed, Crude Palm Oil, Groundnut Oil, Kapasia Khalli, Mustard Oil, Mustard Seed (Jaipur), Mustard Seed (Sirsa), RBD Palmolein, Refined Soy Oil, Refined Sunflower Oil, Rice Bran DOC, Rice Bran Refined Oil, Sesame Seed, Soymeal, Soy Bean, Soy Seeds

CEREALS

OTHERS

Maize, Barley, Rice, Sharbati Rice, Basmati Rice, Wheat [edit]Key

Guargum, Guar Seed, Gurchaku, Mentha Oil, Potato (Agra), Potato (Tarkeshwar)

shareholders

Financial Technologies (I) Ltd., State Bank of India and its associates, National Bank for Agriculture and Rural Development (NABARD), National Stock Exchange of India Ltd. (NSE), Fid Fund (Mauritius) Ltd. an affiliate of Fidelity International, Corporation Bank, Union Bank of India, Canara Bank, Bank of India, Bank of Baroda , HDFC Bank,, SBI Life Insurance Co. Ltd., ICICI ventures, IL & FS, Merrill Lynch, and New York Stock Exchange

Multi Commodity Exchange of India

Website Trading Solutions Risk Solutions Exchange Solutions

Multi Commodity Exchange of India

Founded Headquarters Key People Products Corporate Website

2003 Mumbai, India CEO and MD Lamon Rutten Commodity derivatives contracts http://www.mcxindia.com

The Multi Commodity Exchange of India (MCX), part-owned by India-based exchange developers Financial Technologies (India), is India's largestderivatives and commodities exchange and presently controls around four fifths of India's rapidly expanding public-trading market for commodity futures. International investors including Fidelity and NYSE Euronext also hold stakes in MCX. The combined MCX and MCX-SX was ranked as the world's 9th-largest derivatives exchange, moving up from the 12th position in 2009, according to the Futures Industry Association's volume rankings for [1] 2010. The amount of futures and options traded on MCX increased by 180.7 percent from 385 million contracts in 2009 to reach a total volume of over 1.08 billion contracts in 2010, according to the FIA report published in March of 2011. This makes it the fastest growing derivatives exchange on the survey for the year of 2010.

Background
The MCX was launched in November 2003 by Financial Technologies (India) Ltd (FTIL), a financial services software firm which secured one of the four licenses offered when the Indian government ended a longstanding ban on commodities exchanges in 2002. It has since grown more rapidly than its two main

domestic rivals, National Multi-Commodity Exchange (NMCE) and National Commodity and Derivatives Exchange (NCDEX), and is now the market's leading player. Other founding shareholders included State Bank of India, Union Bank of India and HDFC Bank. Financial Technologies plans to reduce its holding from 64.3 percent through a planned initial public offering (IPO) - though it has yet to announce a formal listing date - and may cut it to a minority stake [2] when Indias ownership laws are relaxed. An affiliate of Fidelity acquired a 9.24 percent stake in February 2006 for $49 million, [3] and Citigroup and Merrill Lynch each bought a 5 percent holding in September 2007. Other shareholders include: National Bank for Agriculture and Rural Development (NABARD), the National Stock Exchange of India (in which FTIL has a 1 percent stake), Union Bank of India, Canara Bank, Bank of India, Bank of Baroda, HDFC Bank and SBI Life Insurance, Passport Capital and GLG [4] Partners. The company has fostered product development with a dozen alliance partners, including the London Metal Exchange, the New York Mercantile Exchange and the Tokyo Commodity Exchange. MCX holds a 49 percent stake in the Dubai Gold & Commodities Exchange.

Business Model and Product Development

The MCX operates its own clearinghouse and had 1,381 members at March 31, 2007, introducing a fourth membership class in October 2007. The MCX listed futures in 58 commodities as of Nov. 14, 2007, focused on metals, energy and agricultural products. In terms of the number of contracts traded, MCX claims to rank no. 1 in silver, no. 2 in gold and no. 3 in crude oil, copper, zinc and natural gas, based on data published on the respective Web sites of competitive exchanges. Natural gas futures were launched in July 2006, potato futures in September 2006, and coffee futures in January 2007. MCX also has attracted volume in trading kapas, soya oil, cardamom, and menthol oil. On Oct. 6, 2008, MCX Stock Exchange (MCX SX), a subsidiary of MCX, announced the launch of currency futures in Mumbai. Live trading began on the MCX-SX platform at 9 a.m. on Oct. 7, 2009. MCX launched India's first electricity futures on Jan. 9, 2009. The contracts are weekly and monthly. They [5] trade in units of 24 megawatt hours; the tick size is 1 rupee per megawatt hour.

Key people
Chief Executive Officer and Managing Director Lamon Rutten was appointed in mid-2009 after the previous boss, Joseph Massey, shifted to the top jobs at MCX's recent stock exchange offshoot, MCXSX. Rutten was previously the joint managing director of MCX and prior to that held various positions with the United Nations Conference on Trade and Development (UNCTAD) in Geneva, Switzerland and with [6] the International Task Force on Commodity Price Risk Management at the World Bank. He holds a postgraduate degree in international economic management from the University of Tilburg, the Netherlands.

Volumes

2009
The combined MCX and MCX-SX ranked as the world's 12th-largest derivatives exchange and India's [7] largest overall, according to the Futures Industry Association's volume rankings for 2009. The FIA report, published in early April 2010, notes that futures and options traded on MCX jumped by more than 270 percent from a low base in 2008 to reach a total volume of 384.73 million contracts in 2009. MCX, [8] which derives 95 percent of its volume from metals and energy contracts , almost doubled its volume over 2008 to 40.9 million contracts in 2009.

History
On June 1, 2010 - MCX launched the lead mini futures contract. The contract mirrors the full-sized 5[9] ton lead futures contract, but is sized at 1 ton. On May 24, 2010 - MCX launched a zinc mini futures contract. The contract mirrors the full-sized 5[10] ton zinc contract on MCX but is sized at 1 ton. On April 15, 2010, MCX-SX announced it had completed its regulatory compliance the shareholder structure of the exchange. MCX-SX announced its shareholders at that time, notably, IFCI Limited as the largest shareholder with a 13.23 percent stake, Union Bank of India with 11.5 percent [11] and Punjab National Bank with 9.2 percent. On January 14, 2010 - parent company Financial Technologies (India) Ltd announced that MCX had migrated its trading and clearing platforms to the next version of its DOME trading platform, and CnS, its clearing and settlement technology.

MCX announced on October 17, 2009 that it had reduced members' transaction fees from four Indian rupees per 100,000 rupees of turnover to 2.5 rupees, eliminating the previous imcremental system of [12] fees. MCX officials expect the new charges to cut members' trading costs by around 50%.