Source: TOI
Context:
The Securities and Exchange Board of India (SEBI) has launched an investigation into the four-and-a-half-hour trading disruption at the Multi Commodity Exchange (MCX) on October 28, 2025, which delayed trading from its regular start time of 9 a.m. to 1:25 p.m. The probe aims to determine whether the incident resulted from system deficiencies, which could attract monetary penalties under SEBI’s framework for market infrastructure institutions (MIIs).
Key Highlights:
- Nature of the Incident:
- MCX experienced a major technical glitch on October 28 that halted trading for over four hours.
- The issue was traced to a “parameter limit relating to reference data like Unique Client Code (UCC)”, which exceeded preset system thresholds.
- The exchange said it has since rectified the issue to prevent recurrence.
MCX (Multi Commodity Exchange of India Ltd)
MCX (Multi Commodity Exchange of India Ltd) is India’s largest commodities derivatives exchange, where participants trade futures contracts in commodities like gold, silver, crude oil, natural gas, agricultural products, and base metals.
Key Points:
- Type: Commodity futures exchange
- Founded: 2003
- Headquarters: Mumbai, India
- Objective: Provide a transparent, regulated platform for price discovery and risk management in commodity markets
- Products: Futures and options contracts in metals, energy, and agricultural commodities
- Regulator: SEBI (Securities and Exchange Board of India)
