Multi Commodity Exchange (MCX)

The Multi Commodity Exchange of India Limited (MCX) is one of India's leading commodity futures and options exchanges. Established in 2003, MCX is headquartered in Mumbai, India, and is regulated by the Securities and Exchange Board of India (SEBI).

History and background

MCX was founded in November 2003 and officially commenced trading operations in November 2003. It was established to provide a platform for trading a wide range of commodities, including agricultural products, metals, energy products, and more.

Ownership and regulation

• MCX is a publicly traded company, and its shares are listed on the National Stock Exchange of India (NSE).

• The exchange is regulated by the Securities and Exchange Board of India (SEBI) and complies with SEBI's regulations and guidelines.

Product offerings

MCX offers a diverse array of commodity futures and options contracts covering various asset classes, including:

• Precious Metals: Contracts for gold and silver are actively traded on MCX.

• Base Metals: Copper, aluminum, zinc, and nickel are among the base metals contracts available.

• Energy Products: MCX offers futures contracts for crude oil and natural gas.

• Agricultural Commodities: Contracts for agricultural products such as cotton, soybeans, wheat, and others are traded.

• Currency Futures: Currency futures contracts are also available for major currency pairs.

Market participants

Participants in MCX include traders, speculators, hedgers, institutional investors, commodity producers, consumers, and retail investors.

MCX provides a platform for these participants to manage price risk, speculate on price movements, and gain exposure to various commodities.

Clearing and settlement

• The clearing and settlement of trades on MCX are facilitated through a separate entity called MCX Clearing Corporation Limited (MCX CCL).

• MCX CCL provides risk management, clearing, and settlement services to ensure the integrity of the market.

Trading hours

Please note all times are in Indian Standard Time, GMT+5:30

Gold (gold futures - MCX gold)

• Morning Session: 10:00 AM to 5:00 PM (Indian Standard Time - IST)

• Evening Session: 5:00 PM to 11:30 PM (IST)

Silver (silver futures - MCX silver)

• Morning Session: 10:00 AM to 5:00 PM (IST)

• Evening Session: 5:00 PM to 11:30 PM (IST)

Market impact and reach

MCX is a significant player in the global commodities market and plays a crucial role in India's commodity trading ecosystem. The exchange has a wide-reaching impact on price discovery and risk management for commodities in India and beyond.

Global connectivity

MCX has taken steps to enhance its global connectivity, allowing foreign entities and institutions to access its markets and trade in Indian commodity futures.

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