The Multi Commodity Exchange (MCX) informed that iCOMDEX Bullion Index October 2023 futures contract, and crude oil 25 October 2023 Option contract, will be available for trading with effect from Monday, July 24. It also stated that the contract specifications and trading parameters of the said contracts issued by it earlier, shall be binding on all the Members of the Exchange and constituents trading through them.

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However, the technology-related woes of MCX are only getting worse by the day. Sources in the know said that earlier this week, market regulator SEBI had sought clarity on the implementation of the new technology platform that MCX was developing with TCS, as the exchange has failed to follow many earlier deadlines. Pending much clarity, MCX could be facing restrictions on the launch of any new contracts, the sources said.

Another source close to MCX said that SEBI has set a deadline for the exchange to implement the new technology by the end of September. All of these issues were discussed in the board meeting, both the sources said.

More than two years have passed since MCX appointed TCS to develop a new tech platform as it wanted to discontinue the services of its two-decade-old service provider, 63Moons (erstwhile Financial Technologies). For the count, It is the third time that MCX had to approach 63 Moons last month to extend the software support service arrangement after the long-term arrangement ended on September 30, 2022. MCX had selected the new technology service provider TCS way back in February 2021 but the implementation of the technology has faced significant delays. The extended contract of MCX with 63Moons is now valid till December 31, 2023.

On August 10, 2022, SEBI had written to MCX stating that it (new technology implementation) was a serious issue, which had to be assigned the highest priority and resolved timely. “Being a market infrastructure institution, it is necessary that MCX and MCXCCL ensure, on a continuous basis, that they have adequate infrastructure and systems in place to ensure the orderly execution of trades and timely clearing and settlement of trades as well as having online surveillance capability,” SEBI had told MCX.

MCX has witnessed a slew of resignations by chief technology officers (CTOs) in the last few years. After Rahi Racharla (designated as chief information officer) quit in August 2018, his replacement, Paresh Paul, who was appointed in February 2019, also quit in March 2021. This was followed by the exit of Manav Jain and Shashank Sathe, two other technology chiefs who came in after Paul. It is unprecedented for a large exchange in the midst of a technology transition. The uncertainty over a full-time CTO is believed to be a factor behind MCX's failure to firm up its Business Requirement Specification (BRS) document for TCS. MCX also does not have a full-time chief regulatory official (CRO), a crucial person who can give input on the implementation of the new platform as per SEBI norms.