Multi Commodity Exchange of India
From MarketsWiki
| Multi Commodity Exchange of India | |
| |
| Founded | Nov. 10, 2003 |
|---|---|
| Headquarters | Mumbai |
| Key People | Jignesh Shah, CEO and managing director; Lamon Rutten, joint MD; Joseph Massey, deputy MD; Dipak Shah, director of operations; Shreekant Javalgekar, group finance controller; Venkat Chary, chairman |
| Products | Futures in metals, energy products and agricultural commodities |
| Web site | http://www.mcxindia.com |
The Multi Commodity Exchange of India (MCX) is by far the largest of the country's 24 commodities exchanges, with a market share of 70 percent focused on metals, energy and a range of agricultural products. The electronic platform ranked 19th globally with 45.6 million contracts traded in 2006.[1]
History and Ownership
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.
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 when India’s ownership laws are relaxed.[2]
An affiliate of Fidelity International acquired a 9.24 percent stake in February 2006 for $49 million, and Citigroup and Merrill Lynch each bought a 5 percent holding in September 2007.[3]
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 Partners.[4]
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. Its bullion complex includes three silver futures, where it ranks number two globally by volume, with trading in its three gold futures ranking it third worldwide. It is number two in copper futures. 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 06, 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 9:00 AM on Tuesday, October 7th.
References
- ↑ "Volume Growth Accelerates". FIA. Retrieved on November 14, 2007.
- ↑ Multi Commodity Exchange denies IPO plan. Mint. Retrieved on January 11, 2007.
- ↑ "Citigroup and Merrill invest in MCX". Financial Times. Retrieved on November 14, 2007.
- ↑ "FTIL Annual Report". Financial Technologies. Retrieved on November 14, 2007.
- India:the crouching tiger. FIA. Retrieved on November 14, 2007.
