MCX'S GLOBAL RANKING TAKES A BEATING

DOCKET

PREFACE FIA REPORTS REASON BEHIND THE FALL MCX’S FISCAL REPORT EXPERT's POINT OF VIEW

PREFACE

Multi Commodity Exchange of India Ltd (MCX) is an independent commodity exchange based in India

The Exchange has an extensive national reach, with 1782 members, operations through 487,671 trading terminals (including CTCL), spanning over 1809 cities and towns across India

FIA REPORTS

India’s largest commodity exchange, MCX has slipped 14 positions in the past two years in the global ranking of exchanges by US–based Futures Industry Association (FIA)

As per FIA, MCX slipped to 24th rank among 53 globally-renowned commodity and equity exchanges in 2014, compared with 10th rank in 2012 and 3rd among global commodity exchanges

REASON BEHIND THE FALL

The imposition of a commodity transaction tax ( CTT) was one of the biggest direct factors that seems to have affected trading on MCX

Within a month since its imposition turnover on MCX was down a clean 40 per cent

MCX’S FISCAL REPORT

In 2013, the number of contracts traded on MCX fell by 32 per cent to 26.5 crore from a year-ago period

The number of contracts traded on NCDEX declined by 28 per cent to 3.2 crore, pushing it to the ninth slot from No. 8 position a year ago

In 2012, MCX was ranked 10th largest derivatives exchange by FIA in their Global Annual Volume Survey report on exchanges which erroneously clubbed volumes of MCX-SX and MCX

EXPERT’S POINT OF VIEW

The previous management had laid a vision to get MCX on top in global ranking with an average daily turnover of closed to Rs 100,000 crore in the next few years

The sheen has now gone off commodity markets and the average turnover, the number of brokers and new product launch have taken a hit in the past two years

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