Questions across 5 calls

Praveena Rai

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Multi Commodity Exchange of India Limited

Multi Commodity Exchange of India Limited CC-Feb26.pdf · 2026-01-27

Thank you, Devesh, for the appreciation, we'll certainly pass it on to the entire MCX team. We have at the heart of this growth in UCCs, 2 contributing factors. One is really an exercise in exploring and aligning the user experience across members for commodity derivatives trading. So we did identify early on that experiences like a common ledger, front screen experience for a retail member, a retail participant, their important criteria and in reality viewing experiences end-to-end, there is a fair amount of activity that our teams have taken, but more importantly, members have looked at the opportunity that they seek for commodity derivatives market, what their users are looking for and aligned the e xperience to be a common experience, be it equity investing or commodity derivatives investing. So, we believe that's one of the drivers of the uptick. Alongside that is also the fact of new members who have come into our fold that has contributed to new UCCs coming in along with those members. So, both of these are driving factors. I think at least for rest of the year, we do expect to see a certain momentum continuing. And when I say rest of the year, let's say, for some time now, we expect this momentum to continue because there is headroom from where we stand today to what is the potential.

Yes. I think headroom is both. Headroom comes from both at a larger business level. But certainly, when it comes to UCCs and you see participation at India level, we see headroom there.

Multi Commodity Exchange of India Limited CC-Nov25.pdf · 2025-11-07

Yes. So, I'll first confirm that the trading has moved back to the main site. During the course of that week, we did not want to make a move back to the main site, just given the situation that had happened, but that weekend, the system moved back, and everything is back to normal. Now the root cause, I think we've defined but let me try to explain it a little bit more. So, it is a predefined parameter limit, which was there in the gateway services. And this pertains to certain files, which include the configuration of things like the UCC. This crossed a particular limit that night because of which the threshold started becoming active. And with that threshold active, the gateway services were not able to get fully enabled. And because this is a predefined parameter, the same parameter continued to hold good in the DR site also, even though the immediate action to move to DR was taken, the same key issue emerged, and there had to be certain steps taken to find it, resolve it, address it and then run the process to start trading for the day, which tends to be a process with a few steps. And all of this together is what took that time before we opened up for trading. So, this is what we have. And since we identified the problem that day and after that, we went through a root cause analysis, which we confirmed, the issue, we have also taken steps to make sure this problem is addressed in the system and then this has been brought back into operating from the main site. So, the issue has been resolved on both our main data centre as well as our DR site.

Yes. So of course, the first incident was pertaining to the clearing corporation, and this pertains to trading, the clearing systems and the trading systems. So yes, two different systems, though they did impact our market operation. So, there are standard processes followed in the way we need to adhere to updates and analysis working with SEBI and all of that is currently under progress. Public Till that process is completed, it will be speculative to make any note or take a view on how this will go. I think we are confident about where we are, and this is the message that we'd like to give forward.

Multi Commodity Exchange of India Limited CC-Jun25.pdf · 2025-08-04

Yes. So, it's a very important question to address. And as mentioned, we continue to be highly focused on our technology excellence. On the day, as mentioned, there was a database anomaly, which led to this delay in overnight clearing system processes, Public and hence, the delay in opening of trading. That was immediately corrected. We have worked with experts in the space, the topmost experts available. The core issue was immediately identified and fixed, and we are confident that this will not recur. All processes associated with regular root cause analysis, reporting and working with the regulator are in process. And that is a regular process. That's so mething that we work very closely with the regulator on. So, I would, at this stage, say nothing untoward there.

Yes. So, thank you. I think that's a very important question. And this is, as always, Q1 over Q4 impact playing out here. In Q4, we did have certain one-off expenses. And as we look at really driving our growth significantly through launch of new products, increased number of participants to drive MCX business towards maturity and growth, we will continue to invest as required. So, I would say that last year, we had -- the efficiency that was delivered last year will continue to sustain. And at this stage, when we are in a growth phase, it will not be prudent to really say that we will be looking at further tightening the belt here. So, the focus is on growth while we do everything that we need to do to sustain the efficiency.

Multi Commodity Exchange of India Limited CC-Mar25.pdf · 2025-05-09

Thank you, Devesh. I think it's an important question. When we look at our cost line items, both employee and IT cost is where we've seen an increase this quarter over last quarter. So if I look at the employee expenses, there is an element here, which per tains to performance payouts. We've had a good year, and we're expecting that to get reflected in those numbers. So if I were to look at the employee expenses, I would cut it at about 75%-25% in terms of the delta with 75% going into a one -time incremental expense associated with performance and 25% is really the readiness from a capacity building standpoint as we go into next year with all our growth plans in place. If you look at the IT costs, here, we do have a bit of a timing concentration in some of our warranty and sort of annual contract renewals. So there is a 30% sitting here in the delta amount, so INR30 crores minus INR20 crores, INR30 crores is the number for this quarter versus INR20 crores of last quarter. Public So 30% of that is a one-time expense. 70% is expense, which comes down to an expense that is getting concentrated in the quarter associated with maintenance renewals and so on. So on an annualized basis, one would expect that to continue, whereas 30% is a one-time.

Yes. We do expect capitalization to sort of depreciation and amortization to continue at these levels because as we are growing significantly, and I think we just discussed that we are looking at -- we have doubled our volumes. And obviously, the tech refresh is a continuous process that would need to be there. There is an element of regulatory change as well as expansion of the kind of network capacity that we require as we have more technology -oriented participants and higher volumes that they are actually performing on the exchange. So all of these are constit uents, regulatory network, tech refresh, and of course, the BAU expenses, which will keep our depreciation at this level.

Multi Commodity Exchange of India Limited CC-Dec24.pdf · 2025-01-21

Thank you, Amit. Thanks for the question. So, when I look at the top three priorities, observing and evaluating the priorities for MCX, the first is operational excellence. And when we say operational excellence, it's really our ability to interact with our members as well as clients in a way that makes trading at the exchange, at the level of performance and best in class that it needs to be. It continues to involve and engage a high degree of focus on our technology. So operational excellence, including our continuous development going forward on technology will be a priority. The second is to really keep our hat on the compliance side very strong as a market infrastructure, that's the expectation from the regulator. And it will be a high focus area for MCX. And on the back of these two really gives us the ability and confidence to start the innovation. And there we will be looking at new products. And I spoke about that a little bit in the session. Looking at new products, looking at new contracts to our -- structures to our contracts, commodities that we currently do not have live contracts in. So, all of these are areas that we will be continuing to explore. Public Now in terms of regulatory and other challenges, I think we do believe that on the back of a strong focus on one and two, operational excellence and compliance, that we will be able to work through this and really drive this journey on our innovation.

So, in terms of where we stand on our internal readiness with respect to new products, we do not have constraints. We are that way ready with our infrastructure. Now, as you rightly said, in addition to what we would look at from the deliverable contracts, would be other contracts around indices, for example. So, we are looking to revive METLDEX, which is our index that has not really had the kind of focus that it can have. So, we believe there is opportunity there. We will also be looking to bring in options on the BULLDEX. So, I think this is really the plan on the index side. And as far as timeline goes, I think you will see all of this in the next few months.