Friday saw a more than 3% decline in the price of Multi Commodity Exchange (MCX) shares, a day after the exchange called off the mock trading session for the new trading platform. The exchange is currently putting a new commodity derivative platform into place. According to a circular released by MCX on Thursday, “the exchange had proposed a mock trading session on June 22, 2023, from 05.00 pm to 11.30 pm which stands canceled.” The stock dropped 3.12% to close at Rs. 1,570.45 on the BSE. It decreased 6.37 percent throughout the day to Rs 1,517.80. It dropped 3.28% to finish at Rs 1,568.80 on the NSE. The exchange had earlier this week suggested but later canceled a mock trading session for June 19.
The exchange had previously announced that mock trading sessions would be held to help members become familiar with the new trading platform. The exchange reported that fake trading started on Friday and would continue until 11:30 p.m. “MCX stock price decreased on June 23 as a result of early media stories concerning the termination of fake trading the day before. Several times, mock trading has been canceled, according to Deepak Jasani, Head of Retail Research at HDFC Securities. Jasani noted that MCX planned to switch to new technology on July 1. “The street is avidly watching to see if it can accomplish that without incident.
We may do a few more mock sessions, and by the end of the next week, we will know more about the success of the switch to new technologies. The stock price’s downturn was also a result of the general soft markets, he claimed. The 30-share BSE Sensex dropped 259.52 points or 0.41 percent to close at 62,979.37 on the equity market. To finish at 18,665.50, the NSE Nifty fell 105.75 points or 0.56 percent. To prevent any problems when the exchange plans to go live with the new trading software, the exchange had previously asked users to actively engage in the simulated trading session.
The last time it was modified was on September 27, 2014, the software support and maintenance agreement between 63 Moons and MCX was set to expire on September 30, 2022, but it was postponed at the last minute for a three-month period until December 31, 2022. The software contract between MCX and 63 Moons was later extended until June of this year. 63 Moons, which was MCX’s former founder-promoter and was formerly known as Financial Technologies India Ltd, has provided technical support for the exchange. In contrast, in February 2021 Tata Consultancy Services (TCS) was chosen as the provider for the creation of the new commodity derivative platform.
