MCX attains highest market share since Oct 2013

Commodity Exchange MCX on Monday said it has achieved the highest market share of 83.4 per cent during the first fortnight of August since the collective impact of a payment crisis at National Spot Exchange Ltd and the Commodity Transaction Tax (CTT) hit the bourse in 2013.

While MCX market stood at 86 per cent during the July- September 2013 quarter, at a time when these two factors were playing out, there was a dip thereafter, culminating into a 78.4 per cent market share during the latter half of 2013-14.

However, MCX's market share held steady at above 80 per cent beginning April 2014 and clocked a high of 83.4 per cent by the first fortnight of August 2014, an MCX statement said.

The bourse, meanwhile, maintained its market share in non- agricultural commodities above 99 per cent since Q2 2013-14. Earlier, the August 2014 Gold kg contract traded on MCX witnessed physical delivery of 1,110 kg, the highest volume delivered in the gold kg contract during the last one year.

In terms of value, this translates into more than Rs 300 crore (Rs 3 billion) of delivered quantity.

The market seems buoyant at these developments. "Confidence of participants in the commodity markets and the institutions is returning.

No doubt the continuous effort of the Exchange's management during the tough phase has been a key factor," Religare Securities President, Jayant Manglik said.

P K Singhal, Executive Vice President of MCX said, "We are grateful to the market participants, particularly hedgers, for continuing to repose their faith in MCX".

Having commenced operations on November 10, 2003, MCX is India's first listed, national-level, electronic, commodity futures exchange.