MCX Share Price Surges Over 9% to 52-Week High on Reports of New Trading Platform Launch

MCX Share Price Surges Over 9% to 52-Week High on Reports of New Trading Platform Launch Imag/Mint

VoM News Desk | September 25, 2023 | 02:57 PM IST | Breaking News | Follow on Google News

MCX Share Price Surges Over 9% to 52-Week High on Reports of New Trading Platform Launch

MCX (Multi Commodity Exchange of India) witnessed a substantial surge in its share price, climbing over 9% to reach a 52-week high of ₹1,950.00 apiece on the BSE. This significant uptrend comes amid reports that the commodity exchange is preparing to launch a new trading platform, set to be serviced by Tata Consultancy Services (TCS), from October 1, as reported by CNBC-TV18.

While these reports have boosted MCX’s stock price, it’s important to note that the exchange has not issued an official statement regarding the precise date of the transition to the new trading platform. In June of this year, MCX had announced an extension of its support services contract with its existing software vendor, 63 Moons Technologies, until December 2023. The extension was agreed at ₹125 crore per quarter.

Irccon International Seals Deal with Sri Lanka Railways, Share Price Climbs

To mitigate potential issues during the transition to the new platform, MCX plans to retain the 63 Moons platform as a backup. According to the news report, mock sessions on the new platform have been free of glitches thus far. Additionally, MCX will need approval from the market regulator, the Securities & Exchange Board of India (SEBI), to officially go live with the new TCS platform.

In February 2021, MCX’s board decided to award the contract for the implementation of its Commodity Derivatives Platform to TCS, signaling the exchange’s intent to migrate to TCS’ software for its technology platform. However, the transition faced delays, prompting MCX to extend its software support service arrangement with its founder-promoter, 63 Moons.

The software support and maintenance agreement with 63 Moons had commenced in September 2014 and was initially set to conclude in September 2022.

Over the past month, MCX’s share price has rallied by more than 20%, with the stock showing a year-on-year increase of over 50%. As of 2:25 pm, MCX shares were trading 6.72% higher at ₹1,904.00 apiece on the BSE.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.