MCX Stock Exchange
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Metropolitan Stock Exchange Of India Ltd. (MSEI) formerly MCX Stock Exchange Ltd. (MCX-SX)
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|Headquarters||4th floor, Vibgyor tower, Opposite Trident Hotel, Bandra-Kurla Complex, Mumbai, India- PIN: 400098|
Thomas Mathew T (Chairman) Ashima Goyal (Vice Chairperson)Udai Kumar (Interim MD & CEO)
|Products||Currency futures contracts (USD-INR, EUR-INR, GBP-INR, JPY-INR) & IRF|
Metropolitan Stock Exchange of India Ltd. (MSEI), formerly known as MCX Stock Exchange Ltd. (MCX-SX), is India’s youngest and one of the three stock exchanges recognized by country’s securities market regulator - Securities and Exchange Board of India (SEBI). It offers an electronic platform for trading in Capital Market, Futures & Options, Currency Derivatives, Interest Rate Futures (IRF) and Debt Market segments.
MSEI's current shareholders include Indian public sector banks, private sector banks, investors and domestic financial institutions.
About Metropolitan Clearing Corporation of India Ltd. (MCCIL) formerly MCXSX CCL – The Exchange’s arm for Clearing and Settlement of trades
In line with global best practices and regulatory requirements, clearing and settlement of trades done on MSEI are conducted through a separate clearing corporation arm − MCCIL, which is a subsidiary of the Exchange. MCCIL acts as a central counterparty to all trades on MSEI and to provide clearing and banking services, it has empanelled a number of banks that include Axis Bank, Bank of India, Central Bank of India, HDFC Bank, Canara Bank, IDBI bank, ICICI bank, Kotak Mahindra Bank, IndusInd Bank, Yes Bank, State Bank of India and Union Bank. It has completed more than 2282 on-time, zero-default settlements as on 31st Dec 2015.
SX40 is the flagship Index of MSEI. A free float based index of 40 large cap - liquid stocks representing diversified sectors of the economy. SX40 is designed to measure the economic performance with better representation of various industries. The Index is devised to offer cost-effective support for investment and structured products such as index futures and option, index portfolio, exchange traded funds, Index funds, etc.
MSEI currently Rupee(EURINR), Pound Sterling-Indian Rupee (GBPINR) and Japanese Yen-Indian Rupee (JPYINR) & IRF.
Specifications of the MSEI USDINR contract are as stipulated by RBI and SEBI, and are as follows:
|Unit of trading||1 (1 unit denotes 1000 USD)|
|Underlying||The exchange rate in Indian Rupees for a US Dollar|
|Tick size||Tick size Rs.0.25 paise or INR 0.0025|
|Trading hours||Monday to Friday 9.00 a.m. to 5.00 p.m.|
|Contract trading cycle||12 month trading cycle.|
|Last trading day||Two working days prior to the last business day of the expiry month at 12.15 p.m.|
|Final settlement day||Last working day (excluding Saturdays) of the expiry month.
The last working day will be the same as that for Interbank Settlements in Mumbai.
Risk management at MSEI:
MSEI has a very robust risk management system in place. The salient features are as follows: Policies / Procedures / Standards: The Information security management systems of the Exchange are in accordance with the internationally recognized standards (ISO/ IEC 27001:2005). It follows the “Defense-in-depth” mechanism
Real Time Risk Management: A real-time monitoring of mark to market losses is carried out. The Exchange also has a system for generating alerts on MTM losses or margins exceeding applicable limits.
Business Continuity Plan: The Business Continuity plan of the Exchange covers important factors of the business impact analysis, business continuity strategy and implementation of BC and disaster recovery plan.
Clearing and Settlement: MCCIL, acts as the central counterparty providing novation and clearing & settlement services for various asset classes that are traded in the Metropolitan Stock Exchange of India Ltd (MSEI). The MCCIL is a subsidiary of the MSEI and a Clearing Corporation recognized by the SEBI under the Regulation 4 of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012. The MCCIL is also a Qualified Central Counter Party (QCCP) subject to the SEBI’s regulatory framework which is consistent with CPSS-IOSCO Principles for Financial Market Infrastructures. The MCCIL has adopted various best practices in the industry to make sure transactions are managed efficiently and completed seamlessly, which includes transparency in its functions, capital adequacy norms for membership, dedicated settlement guarantee fund, globally accepted systems for margining, online monitoring of Margins & Mark to Market Losses, online monitoring of member positions based on prudential position limit norms, system driven pre-trade risk controls on higher margin utilization, automatic trading restriction on breach of prudential limits, multilateral netting for obligation computation and regular stress testing / back testing of margins
Important Developments at MSEI:
Oct 2008 Launched Currency Futures trading in USD-INR contracts
Feb17, 2009 MCX Stock Exchange Clearing Corp Ltd. (MCX-SX CCL), the clearing and settlement arm of the exchange commenced operations
July 2009 Launched NISM certification programs in currency derivatives
Jan 2010 Launched trading in three new currency pairs – EURINR, JPYINR and GBPINR
Jul 10, 2012 SEBI has granted permission to deal in Currency Options, Equity and Equity Futures & Options, Interest Rate
Aug 2012 Launched trading in Currency Options
Dec 20, 2012 Receipt of ‘commencement certificate’ from SEBI
Dec 21, 2012 Govt of India granted “recognized stock exchange” status to MSEI
Feb 9, 2013 Hon’ble Union Finance Minister Shri. P Chidambaram inaugurated Equity and Equity Derivatives segment
Feb 11, 2013 live trading begins in Equity and Equity Derivatives segment
Jan 9, 2014 Received SEBI approval to launch Interest Rate Futures (IRF) segment
Jan 20, 2014 Started live trading in IRF
Aug 5, 2014: COMPAT uphelds CCI order on “Zero Pricing” in favour of MSEI
Aug 25, 2014: Exchange shifts to a newer premiere business district at BKC, Mumbai
Sep 01, 2014: MSEI shifted its data Centre to a new location at Tata Communications as a part of its turnaround strategy
Sep 16, 2014: Renewal of recognition to the Exchange by SEBI
Sep 17, 2014: SEBI cleared new name of the Exchange ‘Metropolitan Stock Exchange of India Ltd (MSEI)’
- Banks: Union Bank Of India, Punjab National Bank, Bank of Baroda, Bank of India, Andhra Bank, Allahabad Bank, Oriental Bank of Commerce, Indian Bank, Indian Overseas Bank, Corporation Bank, Syndicate Bank, HDFC Bank Ltd, Vijaya Bank, United Bank of India, Axis Bank Ltd, State Bank of India, Punjab and Sind Bank and UCO Bank
- Corporates: Edelweiss Commodities Services Ltd, Trust Investment Advisors Pvt Ltd, IL & FS Financial Services Ltd, Multi Commodity Exchange Of India Ltd.
- Indian Financial Institution: IFCI Ltd.
- Individuals / Firms : Dr. Rakesh Jhunjhunwala, Mrs. Viral A. Parikh, Nemish S. Shah as Karta of Nemish S. Shah H.U.F., Mr. Kalpraj Dharamshi, Mr. Dhanesh Sumatilal Shah, Mr. Uday Shah, Ms. Madhuri Kela, Ms. Renuka Shah, Ms. Madhu Vadera Jayakumar, Derive Investments