



Will brokers' push for market-making pump up commodity trade liquidity?
Subscribe to enjoy similar stories. Top brokers have urged the capital markets regulator to harmonize market-making rules across equity and commodity derivatives, a proposal that holds the potential to challenge the near-monopoly of the Multi Commodity Exchange (MCX) in India's commodity derivatives market if implemented.
Just a week after the Metropolitan Stock Exchange of India (MSEI) announced that it was introducing market making for a list of stocks , in compliance with Sebi rules , the Association of National Exchanges Members of India (ANMI) requested the regulator to extend equity-style market making to the commodity derivatives segment (CDS) through a communication on Friday. Total CDS turnover in India's CDS market stood at ₹95.58 trillion in FY26 through November, compared with ₹180.73 trillion in the equity cash market.
Market-making allows an exchange to incentivize certain large brokers or financial firms in compliance with Sebi regulations to offer competitive buy and sell quotes, which in turn attracts more traders, increasing liquidity and competition and reducing dominance of any single exchange. Currently, exchanges are free to offer market-making—formally called a liquidity enhancement scheme (LES)—to launch or revive an equity cash segment, even when those stocks are liquid on other leading exchanges; however, they can't offer it in commodity contracts already liquid on another existing bourse—unless that exchange also offers LES on the same contract.
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