Is the MCX stock set for a rally?

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Subscribe to enjoy similar stories. With technology upgrades and the launch of a new platform in 2023, followed by the introduction of new products, the Multi Commodity Exchange of India Ltd. (MCX) solidifies its position as the leading commodity derivatives exchange in India.

Catering to over 90% of the country’s commodity derivative trades, MCX facilitates price discovery and provides critical price risk management tools for commodity traders. Established in 2003, the exchange operates under SEBI’s regulatory framework. Read this | Nuclear power: Two stocks tapping into a huge but restricted opportunity Let’s delve into the MCX business model, its recently launched products, and the potential impact on its operations.

MCX is India’s first commodity exchange to introduce options and futures contracts on bullion, base metals, and energy indices. According to its website, as of 30 September , the exchange boasts 544 registered members, 35,096 authorized persons, and a reach spanning 666 towns and cities across India, serving nearly 2.89 crore clients. It has also facilitated the delivery of 5,579 tonnes of bullion and 4.31 lakh tonnes of metals.

In terms of trading volumes, MCX recorded an average daily turnover of ₹26,463 crore in futures and a notional turnover of ₹1,70,040 crore in options during April to September. Globally, MCX ranks as the third-largest exchange for commodity options and the seventh-largest for commodity derivatives, based on the number of contracts traded in 2023. Further strengthening its ecosystem, MCXCCL (Multi Commodity Exchange Clearing Corp.