MCX soars 10% today; Company is likely to shift to a new trading platform next month

Shares of the company currently trading at a discount of approximately 12% from their all-time high price of Rs 2,135, which was recorded on October 14, 2021.

MCX is a prominent commodity derivatives exchange that enables online trading of commodity derivatives transactions. The company is planning to switch to its new trading platform, provided by Tata Consultancy Services Limited, after many years and multiple service extensions with its current service provider likely from the beginning of next month.

According to sources, a successful mock trading session took place on the new platform last Saturday. The company is likely to shift its operations to the new trading platform by next week, pending necessary approval from the market regulator SEBI.

MCX has been using software provided by 63 Moons Technology for a long time. The initial agreement between MCX and 63 Moons was made in November 2014 and was set to expire in 2022. However, the company announced an extension in July, deciding to continue its support services from 63 Moons Technologies for an additional six months, starting from July 1, 2023, with an expiration date in December of the same year.

This transition to the new platform is a significant development as it ends the exchange’s reliance on its previous partner, 63 Moons. To ensure a smooth transition, MCX plans to keep the 63 Moons platform as a backup in case any issues or glitches arise on the new platform.

MCX faced challenges in transitioning to the new platform within the initially specified deadlines, which led to the extension of its agreement with the current service provider, 63 Moons.

The company’s stock price surged by 9.3% in today’s trading session, crossing Rs 1900 per share on the BSE. It reached a 52-week high price of Rs 1950 per share and closed today’s trading session at Rs 1903, marking a 6.68% increase from the previous day’s closing price of Rs 1784 per share on the BSE.

The stock is currently trading at a discount of approximately 12% from its all-time high price of Rs 2,135, which was recorded on October 14, 2021.

Additionally, there has been a substantial increase in trading volumes, over 3.90 times the average daily volume on the BSE. The stock has delivered an impressive return of 22% within just one month.

Investors should keep an eye on this stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.