Commodity derivative exchange MCX said it has identified the root cause of the technical incident that occurred on October 28, attributing it to pre-defined parameter limits of reference data such as Unique Client Code (UCC) configurations within its systems. According to an exchange statement shared on October 31, these parameter thresholds created constraints that led to the technical issue during trading hours.
The exchange added that it has already implemented corrective measures to address the issue and prevent similar occurrences in the future. Despite the incident, MCX said its core trading systems remained unaffected and continued to function normally throughout the event.
“Primary root cause has been identified as predefined parameter limits relating to reference data like Unique Client Code (UCC) configured within the systems. This led to constraints beyond the threshold,” the exchange said.
“We have taken steps to address these constraints to prevent similar issues in the future,” MCX added.
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Reassuring market participants, the exchange said its trading infrastructure continues to be robust and equipped to handle increasing market volumes and future growth, with no fundamental weaknesses detected in the trading engine or core systems.
“Notably, trading systems have not had issues. Exchange systems are well positioned to support market volumes and growth,” MCX said.
The exchange also said it is committed to ongoing technology upgrades and infrastructure investments aimed at enhancing performance, scalability, and overall system reliability. “We remain committed to strengthening our operational robustness and will continue investing in cutting-edge technology to enhance performance, reliability, and scalability, ensuring that we meet the evolving needs of our members, participants and stakeholders” MCX added.
Also read: Sebi seeks details of the four-hour long trading disruption from MCX
The clarification follows growing interest in the cause and mitigation of the system disruption earlier this week.
On October 28, MCX could not start its trading operations for more than four hours due to a technical glitch, and operations could not be shifted to the back up or disaster recovery site. Regulator Sebi too had sought details from the exchange, especially the inability to switch to DR site in specified time.
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