MCX alert: Trading members know this mandatory compliance requirement to avoid punitive action

MCX Alert: India’s largest commodity exchange – The Multi Commodity Exchange (MCX) has asked trading members of the exchange to report cyber incident(s) whether occurred or not occurred for the quarter ending June 2020 through its portal, according to a circular available on its website.

“Members are requested to keep the Exchange informed regarding Cyber Incident(s). Trading Members of the Exchange are required to report Cyber Incident(s) whether occurred /non-occurred for the quarter ending June 2020 through portal https://member.mcxindia.com,” the circular says.

The portal will be available from July 01, to July 15, 2020, it further says.

The disclosures have to be made in accordance to the “provisions of the Rules, Bye-Laws and Business Rules of the Exchange and in continuation to Exchange circular no. MCX/TECH/524/2018 dated December 13, 2018, MCX/TECH/587/2019 dated October 16, 2019 and MCX/TECH/167/2020 dated March 12, 2020,” the circular says.

“The help file for online submission is available on SFTP common path: https://sftp.mcxindia.com/Common,” the circular says.

The exchange warns trading member of action in case of non-compliance of the order. “Non-compliant members shall render themselves liable for action as may be deemed fit by the Exchange. Members are requested to take note of the above and ensure compliance.” the circular said.

In another circular, the exchange has also directed its members to report for Artificial Intelligence (AI) and Machine Learning (ML) applications and systems offered and used as per the norms specified by it.

“Trading Members of the Exchange are required to report for AI / ML based application or system for the quarter ending June 2020 through portal https://member.mcxindia.com,” the 16 June circular says.

The MCX is India’s first listed exchange and is a state-of-the-art, commodity derivatives exchange that facilitates online trading of commodity derivatives transactions, thereby providing a platform for price discovery and risk management.

MCX started operations in November 2003 and it operates under the regulatory framework of Securities and Exchange Board of India (SEBI).