Multi Commodity Exchange ditches 63 Moons, picks TCS as new technology partner

Image by Gerd Altmann from Pixabay

Multi Commodity Exchange of India (MCX) has given its contract for the implementation of the Commodity Derivatives Platform (CDP) to Tata Consultancy Services (TCS). The MCX board met on February 5 and announced its new technology partner.

This is the first time that MCX is changing its technology partner. Currently, 63 Moons Technologies, (formerly FTIL) which was the founder-promoter of MCX, is providing technology for the clearing and settlement software at MCX.

A source close to the development told Moneycontrol: “TCS was the lowest bidder in the bidding process which was initiated in October last year. The company has the expertise and has been expanding its software suite with the acquisition of Postbank Systems AG, the technology services unit of Frankfurt-based Deutsche Bank AG.”

A 63 Moons spokesperson has told Moneycontrol that the company is not aware of any such development.

“However, if it is true, we can only quote from the Bible: ‘God please forgive them, for they don’t know what they are doing’. This is akin to changing the engine of a supersonic plane while it is flying seamlessly at 50,000 feet over sea level. 63 Moons is the only company in the exchange technology space, which has got 24-carat operational track record for 16 hours a day, right from the inception of MCX, and in fact, it is the wind beneath the MCX wings of stability till September 2022,” the spokesperson added.

MCX has been the biggest client of 63 Moons Technologies for exchange technology product and services. The development is likely to be a blow to 63 Moons Technologies as MCX is its only remunerative exchange client. Its other client, the Metropolitan Stock Exchange (MSE), has been on a revival mode after struggling in the past.

The present MCX-63 Moons agreement will come to a close in 2022, by which time MCX will now have to migrate to the CDP implemented by TCS. It remains to be seen how MCX and 63 Moons manage their relationship until 2022 to ensure that the migration is smooth.

The loss of MCX account has put a question mark on the future of 63 Moons’ Exchange Technology as it has not found any new client in the past several years. Post-2022, the company’s revenues and profitability may be affected and it may find it tough to maintain its development and support team.