MCX extends software services deal with 63 Moons Tech for the 'last time'

Tata Consultancy Services (TCS) is the new software services provider MCX has appointed

Used to the bureaucratic exchange filing system, market participants were in for a surprise when 63 Moons Technologies informed bourses in a notification dipped in heavy sarcasm that it has agreed to extend the software support service to Multi Commodity Exchange (MCX) for six more months.

“We wish to inform you that we have once again agreed to the eleventh-hour request by Multi Commodity Exchange of India Limited (MCX) which, according to MCX, is for the ‘last time’ for one more time,” the company said in a filing on June 29.

This is the third time that MCX approached 63 Moons to extend the software support service arrangement after the long-term arrangement with MCX ended on September 30, 2022 and the exchange selected another technology service provider back in February 2021.

Tata Consultancy Services (TCS) is the new software services provider MCX has appointed and is working on developing new trading platform for the exchange.

MCX has failed to migrate to the new technology platform since then. The exchange has done a number of mock trials but the last one was cancelled last week without providing a reason. Thus, some feared that another extension was in the making.

MCX will be paying Rs 125 crore for each quarter for the extension of services. This is at a significant markup to the previous remuneration it paid.

“We sincerely wish that this ‘last time’ really happens someday, so that we deploy our excellent team of exchange technology engineering group in a mega promising opportunity in new digital world,” said 63 Moons Technologies.

Since August 2020, the software services provider has been offering an option to purchase the software source code for self-use which the company says is in line with the practices adopted by all best exchanges in India as well as across the world.

“We had also offered them long-term contracts of two years in 2022. However, for the reasons best known to them, they have not opted for it,” said 63 Moons. “As the founders and well-wishers of MCX, we wish them good luck with these new experiments and hope that they will reach the right destination one day.”