MCX Factsheet 2016

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FACTSHEET

the facts `1,19,941 crore


The highest daily turnover of MCX since
inception (on April 15, 2013)

84.30%#
Market share
#
`21,923 crore
Average daily turnover

5,80,000+#
Trading terminals, including CTCL

1700+#
Towns and cities - reach of MCX

who are we Commodity Futures offered:


Multi Commodity Exchange of India Limited (MCX) is Indias premier
commodity futures exchange regulated by the Securities & Exchange Board of
India (SEBI).
q The exchange offers: Bullion
= Online trading, and clearing and settlement of commodity Gold, Silver
futures* transactions.
= A platform for price discovery and price risk management.
= Secure, and transparent trade mechanisms.
= A scalable technology framework.
Base Metals
q A public listed company with more than 100,000 shareholders, with a
Copper, Zinc, Nickel, Lead, Aluminum
majority of its shares held by institutional investors.

why us
The market leadership of MCX can be attributed to its: Energy
Product and service innovation Crude oil, Natural gas, Brent crude oil
= Domain expertise backed by extensive research has enabled it to
introduce new products regularly.
= Alliances with regional commodity associations coupled with field studies
are used to design products to cater to the needs of participants of varied
nature, sizes, and with different capabilities. Agricultural commodities
= Stakeholder engagement at every stage of a products life cycle to ensure Mentha oil, Cotton, Cardamom, CPO
its relevance.
A comprehensive list of commodity futures contracts offered by
MCX is available on its website, www.mcxindia.com.

*Commodity futures contract (popularly called commodity futures) is a standardised agreement between two parties to buy or sell a commodity of standardised quantity and quality for a price agreed
upon on a particular day with settlement occurring on a specified future date.
#As of FY 2015-16
MCX FACTSHEET | Page 2

Well-designed trading system = System automatically generates alerts ! Tie-ups with ICFAI Foundation for
= Aligned to the market needs. and takes pre-decided actions. Higher Education (IFHE) and ITM
= Settlement Guarantee Fund and group of institutes for financial
= Scalable architecture ensures security,
Investor (Client) Protection Fund, literacy in commodity markets.
reliability, flexibility, and functionality.
based on the regulators guidelines. ! Flagship certification programme
= Handling capacity of 40 million
called MCCP (MCX Certified
transactions (orders and trades put
Commodity Professional); now
together) per day which is well above Focus on developing the market
available in Hindi too.
the record volumes witnessed by the = Conducting customised awareness
exchange till date. = Sensitization of concerned stake-
programmes in association with the
holders and authorities through
= Accessible through trader work- regulator and/or local trade
evidence-based policy advocacy
stations or computer-to-computer associations all over India.
initiatives.
link (CTCL) using multiple media of = Empowering market participants with
connectivity, such as NPN-POP, VSATs, information required to take
VPN, leased lines, and the Internet. considered decisions through: Thought leadership
= Real time data replication to Disaster ! Release of Dos and Donts = MCX has carved a niche for itself with
Recovery Site in New Delhi. advertisements to enlighten market the backing of its leadership
participants on the merits of trading teammanagement and members
on regulated commodity futures of the Board.
Efficient risk management
exchanges. = Domain expertise, diverse
= Approved clearing banks and exchange
! Engagement with print and electronic professional and educational
-designated warehouses help manage
media for creating awareness and backgrounds, decision-making skills
the daily mark-to-market (MTM)
sensitizing policymakers on various and commitment of the leadership
settlement at in-house clearing house,
issues affecting the market. team have helped MCX excel.
and support physical delivery.
! Empowerment of market parti- = In order to reach out to the
= Real time risk monitoring system and
cipants with relevant information maximum possible stakeholders,
adequate mechanisms track members
through commodity-specific hedging these publications are published in
financial strength, margin utilisations,
brochures, monthly newsletter Hindi and other regional languages.
and mark-to-market losses online as
against deposits made by these (CommNews), and commodity
members to MCX. market review (Commodity Connect).

SCHEMATIC REPRESENTATION OF
PUBLICATIONS FROM MCX
MCXS TECHNOLOGICAL INFRASTRUCTURE
Primary Site Disaster Recovery
at Mumbai Site at Delhi
Internet
MIS MIS

OMS OMS
Server Server

VSAT HUB
FTP FIREWALL FIREWALL FTP

MPLS Cloud

Storage Storage
Market Operation & Market Operation &
Monitoring Segment NPN-POP Network Monitoring Segment

Data- Data-
base base

NPN-POP Network: Nationwide Private Network


CNS with Point of Presence CNS
Server Segment Server Segment

CNS : Clearing and Settlement VSAT : Very Small Aperture Terminal


FTP : File Transfer Protocol MPLS : Multi Protocol Label Switching
OMS : Order Management System PS : Primary Site
MIS : Market Information Server DRS : Disaster Recovery Site
MCX FACTSHEET | Page 3

Strategic alliances INTERNATIONAL TIE-UPS*


= Tie-ups with international exchanges,
Indian and international trade bodies
and associations, corporations,
educational institutions, and R&D DALIAN COMMODITY EXCHANGE

LONDON METAL EXCHANGE


centres enable MCX to engage
stakeholders, improve trade practices, *All logos used here are
trademarks
create awareness, and facilitate of respective companies
overall improvement of the Indian As on 31st March, 2016

commodity futures market.


discovery, reduction in spot price = MCX believes in achieving inclusive
Sound and sustainable business volatility, reduction in information growth and facilitating social change.
asymmetry, and so on. The flagship social inclusion
= A debt-free public listed company
! Study by IIM Kozhikode (2014) programme Gramin Suvidha
with strong fundamentals.
found that there has been a Kendraa publicprivate partnership
= Strong corporate governance with India Postseeks to include
reduction in price elasticity in
structure, which steers MCX to serve farmers in the modern commodity
cardamom after the introduction of
and protect the long-term interests of market ecosystem so as to enhance
futures trading. This has helped
its stakeholders. their value realization from
reduce the vulnerability of
! Commitment to ethical business cardamom farmers. agricultural activities.
conduct, complying with guidelines ! Joint study by IIM Calcutta and
and regulations, comprehensive
NISTADS (2012) has established
disclosures, professionalism, and MCX TRAINING
that Mentha oil futures at MCX
structured accountability.
facilitated the rise of India as the AND
! Board has a combination of major exporter of processed
independent directors nominated/ CERTIFICATION CELL
mentha crystals.
approved by the regulator and ! Study by the Tata Institute of Social
shareholders directors with high
Sciences (2012) has established that
credibility.
MCX platform has ensured stable
and fair prices for small and
Co-creation of social, business value medium enterprises.
= Studies conducted by reputed ! Study by UNCTAD (2009) stated that
institutes have established that MCX futures market in MCX cardamom
plays an important role in efficient has helped stabilize prices in the Offers a certification programme
price risk management and price spot market. (MCX Certified Commodity
Professional, or MCCP) for pursuing
a career in the commodity
derivatives market.
GRAMIN SUVIDHA KENDRA
CROSS-SECTOR PARTNERSHIP MODEL FOR INCLUSIVE GROWTH The programme is designed to
provide the necessary knowledge to
Community influence and mobilisation
acquaint participants with the
Replicable and scalable platform
modalities of commodity derivatives
Public accountability
market in India.

Two modes of training are offered:


! Classroom Training Programme
Farmers Reach ! Distance-learning Training
(as of March 2016)
Programme
Knowledge empowerment. Price
transparency and sustainable 3 States Candidates can take the online
agriculture practices. 25 Centres examination in either Hindi or
Market access. Quality products 917+ Villages English.
and services, storage and credit. 426 Branch Post Offices
email: certification@mcxindia.com
Overall effect. Enhanced livelihood, 31460+ Registered Farmers
aggregation and social impacts.
MCX FACTSHEET | Page 4

how have we progressed ! Mr P. K. Singhal


assigned the role of ! Market share of
! Commodity
Transaction Tax taking care of the 87.48% in Q4 2015
MILESTONES Was the 3rd largest day-to-day ! Launch of futures
! (CTT) imposed from
commodity futures July 1, 2013 operations of the trading in Crude Overcoming many
exchanges globally* ! As a result of crisis at exchange mini hurdles, MCX climbs a
on the number of NSEL (a subsidiary ! Technology ! MCX won the Best rung to be worlds 6th
contracts traded in of FTIL), (1) MCXs agreement with FTIL Commodity largest commodity
CY 2012* erstwhile anchor re-negotiated on Exchange Award at futures exchange in
Commenced the India 2015, going by the
! Became Indias first investor, Financial more equitable
operations in International Bullion number of contracts
listed exchange on Technologies (FTIL), terms from July 01,
November 2003 Summit organised traded*
March 9, 2012 declared not Fit and 2014
2003 2012 Proper; (2) The FMC 2014 by IBJA. 2016
2002 2005-08 ! Recorded the 2013 ! FTIL sold its entire 2015 The exchange won the
Incorporated in April Forged strategic highest daily asked PwC to stake (26%) held in ! The exchange has Best Commodity
2002 alliances with NYMEX turnover of Rs. conduct a forensic MCX between July been honoured with Exchange Award at
(part of CME Group) 119941.42 crore audit of MCXs and September Exchange Of the the 14th Commodity
(single side) operations since 2014 Year for Investor Futures Market
! Market share of inception ! Kotak Mahindra Education and Summit & Excellence
about 87% in revealed pertinent Bank Ltd. acquired Awareness Award Awards, organized by
FY201213 facts 15% equity stake on by the Commodity ASSOCHAM
! MCX underwent September 29, 2014 Participants February 2016
significant changes ! Mr P. K. Singhal Association of India
during 201314; elevated as Joint (CPAI)-May 2015
changes in top Managing Director
management and on October 14, 2014
Board ! Exchange regains
! Market share fell to market share of
about 77% about 86% in
December 2014
* Source: Derived from Futures Industry Associations Annual Volume Survey

Accolades
MCX has received worldwide recognition and many accolades for its pioneering efforts. The exchange today is recognized as a
thought leader and innovator across the industry.
2016 The Best Commodity Exchange of the Year award by ASSOCHAM
2015 - "Exchange of the Year" for 'Investor Education and Awareness' by Commodity Participants Association of India (CPAI)
- "Best Commodity Exchange" Award at the India International Bullion Summit organised by IBJA
2013 The Best Commodity Exchange of the Year award by Global Cotton Conference
2012 FinanceAsia awards MCX IPO as the Best Mid-cap Equity Deal in the entire Asia-Pacific for 2012; first exchange in Asia-Pacific to
receive this recognition
2012 MCXs Gold Petal contract receives the FOW award for the most innovative contract launch by an exchange under the metals
category
2011 Financial Inclusion Award 2011 conferred on MCX by the SKOCH Foundation
2008 Awarded the Golden Peacock Eco-innovation Award 2008 by the Institute of Directors

where to reach us
n Mumbai, Maharashtra Shivanshu Mehta n Lucknow, Uttar Pradesh Sunil Dutt Mishra
Tel: +91-22-6731 8888 / Mobile: +91-99302 67616 Mobile: +91-97930 10333
Email: shivanshu.mehta@mcxindia.com Email: sunil.misra@mcxindia.com
n Ahmedabad, Gujarat Komal Kanzaria n Hyderabad, Andhra Pradesh Samba Siva Rao
Mobile:+91-98252 22839 Tel: +91-40-3250 6470 / Mobile: +91-95818 29933
Email: komal.kanzaria@mcxindia.com Email: sambasiva.rao@mcxindia.com
n Jaipur, Rajasthan Ravikant Khatri n Chennai, Tamil Nadu T. G. Senthilvelan
Mobile: +91-95873 05222 Mobile: +91-91766 35251
Email: ravikant.khatri@mcxindia.com Email: tg.senthilvelan@mcxindia.com
n New Delhi Sanjay Gakhar n Kochi, Kerala Anand Sheyon
Tel: +91-11-2332 0061-64 / Mobile: +91-96541 25004 Tel: +91-484-4141222 / Mobile: +91-94471 62122
Email: sanjay.gakhar@mcxindia.com Email: anand.sheyon@mcxindia.com
n Kolkata, West Bengal Vibhor Tandon n Bangalore, Karnataka N. K. Muthappa
200416

Mobile: +91-90514 98808 Tel: +91-80-40407507 / Mobile: +91-99002 45600


Email: vibhor.tandon@mcxindia.com Email: nk.muthappa@mcxindia.com

Corporate address: Multi Commodity Exchange of India Limited, Exchange Square, Chakala, Andheri (East), Mumbai - 400 093,
India. Tel. No. 91-22-6731 8888, CIN: L51909MH2002PLC135594, info@mcxindia.com, www.mcxindia.com
MCX 2016. All rights reserved.

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