MCX shares hit 52-week high after exchange confirms its shift to new trading platform

MCX to shift to new platform on October 3: The stock of Multi Commodity Exchange (MCX) hit a 52-week high of Rs 2,119.60 on BSE on Thursday (September 28, 2023), a day after the MCX confirmed the Zee Business news that it was shifting to a new trading platform on October 3, 2023.    

The share remained in positive territory for the entire day and closed higher by 7.90 per cent, or Rs 152.85, at Rs 2088.05.  

MCX confirms Zee Business' news

Zee Business was the first to report that the MCX would shift to a new trading platform on October 3. In a circular issued on Wednesday (September 27), MCX said, "MCXCCL is pleased to announce the implementation of the new web-based Commodity Derivatives Platform (CDP) that would interface with members for providing risk management, collateral management and settlement-related services to members and market participants."

The effective date for the implementation of new commodity derivatives platform shall be Tuesday, October 03, 2023, the circular read.

Why MCX is shifting to a new trading platform?

As per Zee Business research, the MCX's contract with 63 Moons, the tech company which was looking after its trading operations, ended on September 2022. The primary concern of the exchange to end its contract with 63 Moons was the rising per month contract cost for software support. 

63 Moons' charges for software support to MCX

It is learnt that continuous increase in MCX's software support charges was putting pressure on its profits. Due to the same reason, the company may show loss due to an increase in cost.

MCX's quarterly results