Trading halts on MCX for over 45 mins due to an upgraded technology, SEBI seeks report

Trading halted on all segments on Multi Commodity Exchange (MCX) on Monday for more than 45 minutes due to a technical glitch in a recently upgraded technology. The exchange on Monday started trading on a new technology, called API.

While the trading resumed at 7:36 pm, there was an option for the members to cancel the pending orders between 7:25 pm and 7:35 pm.

Sources have told Moneycontrol that the markets regulator, Securities and Exchanges Board of India (SEBI), has asked the exchange to file an immediate report on the same today and a detailed report on Tuesday.

Post 5:30 pm, the most traded commodities on the exchange are precious metals such as gold, silver, platinum, base metals such as lead, copper, aluminium, crude oil, and natural gas.

In an earlier instance, trading was also halted on NSE due to technical reasons on July 10 for over three hours. Post that, SEBI had pulled up exchanges and asked them to rectify their platforms.

“When the trading halted on the National Stock Exchange, it was primarily on the indices of NSE as stocks were trading on the BSE. But here, since the commodities are traded only on MCX in India and track global commodities, the halt was crucial,” said Kishore Narne, Head of Commodities Research, Motilal Oswal.

MCX sources its technology from 63 Moons, formerly known as Financial Technologies (India). The exchange has a long-term agreement with FTIL for the technology sourcing.