MCX shares jump 2% on collaboration pact with Jakarta Futures Exchange

Shares of Multi Commodity Exchange (MCX) jumped 2 percent in early trade on February 27.

MCX and the Jakarta Futures Exchange (JFX), the largest exchange in commodity and derivatives market in Indonesia, have entered into a contract to help enhance collaboration in key areas, including knowledge sharing, research, education, training, awareness creation, and other market development initiatives.

At 10am, MCX shares were trading at Rs 3,688.65 on the BSE, higher by 0.75 percent compared to the previous session’s closing price.

“I believe this partnership will contribute to the advancement of both marketplaces through sharing of knowledge, best practices, education, and facilitate market development in their respective regions. We look forward to fostering a lasting and mutually rewarding relationship with JFX,” PS Reddy, managing director and chief executive of MCX, said.

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On February 13, MCX faced technical glitches in its commodity derivatives trading platform. “The exchange is facing some technical issues in its commodity derivatives trading platform on February 13, and teams from the exchange as well as technology vendor TCS are working to resolve the issue,” MCX said in a filing.

The recent glitch is the first incidence of a major technical issue after MCX finally migrated to the TCS platform in December. With trading stopped for over four hours now, the exchange could be liable to pay a hefty fee as mandated by market regulator Sebi.

Over the past six months, MCX shares have surged around 130 percent, more than doubling investors’ wealth during the time period. In comparison, the frontline index Nifty 50 has risen around 14 percent during the same time period.

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