Trading at the Multi Commodity Exchange (MCX) was temporarily halted for over an hour on Wednesday due to a technical glitch, impacting commodity futures and options.
Why Did Trading Stop?
The Multi Commodity Exchange, India’s leading commodity derivatives platform, experienced an unexpected trading halt. The disruption lasted for 1 hour and 15 minutes, from 9:00 am until trading resumed at 10:15 am.
MCX attributed the stoppage to a “delay in clearing technical processes and file sharing.” This technical snag affected operations across its crucial commodity futures and options segments.
Understanding MCX Trading Hours
Normally, MCX operates a robust schedule from Monday to Friday. Its regular trading session begins at 9:00 am and extends until 11:30 pm.
Specific commodities have varying closing times; for instance, agri-commodities trade until 5:00 pm, while bullion, metals, and energy products are available until much later. The exchange also holds a special session from 8:45 am to 8:59 am daily to allow for cancellation of pending orders before the main market opens.
A Pattern of Glitches?
This isn’t the first time technical issues have plagued MCX. Just recently, on February 13, 2024, trading was significantly delayed for four hours, starting at 1:00 pm instead of the usual 9:00 am.
That incident was also blamed on slow processing and generation of backend files for members. While a global Microsoft systems outage in July last year did cause some disruptions, Indian exchanges, including MCX, largely remained unaffected internally, though some individual trading members reported issues.
MCX’s Market Dominance
Despite these technical hiccups, MCX remains a powerhouse in India’s commodity derivatives market. It boasts an impressive market share of about 98% in terms of the value of commodity futures contracts traded in the financial year 2024-25.
The exchange has also seen significant growth. The average daily turnover (ADT) of commodity futures and options on MCX surged by 101% in the 12 months ending March 31, 2025, reaching Rs 2.19 lakh crore. The number of active clients also grew by 39%, indicating a thriving and expanding market.
- MCX experienced a trading halt for over an hour due to technical issues.
- The problem was linked to delays in clearing processes and file sharing.
- This is not an isolated incident; MCX has faced similar technical delays in the past.
- MCX dominates India’s commodity derivatives market, holding a 98% market share.
Such disruptions highlight the critical need for robust and reliable technical infrastructure in financial markets to ensure smooth and uninterrupted trading for participants.
