A recent meeting of the Securities and Exchange Board of India's (SEBI) Technical Advisory Panel has reportedly given the green light to MCX's proposal to shift to a new trading platform. Here are the recent turn of events in the past two weeks to fully understand the scope of this decision and the issues surrounding it.

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The impending transition involves MCX migrating to the new tech platform serviced by Tata Consultancy Services (TCS), which was signed in 2021. However, the exchange continues to operate on a platform provided by 63 Moons Technologies, with a contractual agreement in place until the end of December.

To ensure a seamless transition and avoid disruptions to its trading operations, MCX had planned to commence the migration process three months prior to the expiration of the agreement with the 63 Moons. The approach aimed to ensure that MCX operates on both platforms simultaneously during the three-month transition period before entirely shifting to the TCS platform ahead of the contract expiry with 63 Moons in December.

Following extensive mock sessions conducted throughout the month of September, MCX officially announced its plan to shift to the new trading platform starting October 3. In an unexpected twist, however, markets regulator SEBI advised MCX to put its migration plan on hold. The reason: the filing of writ petitions by the Chennai Financial Markets and Accountability in the Madras High Court. These petitions raised technical issues surrounding the platform transition, prompting SEBI to exercise caution.

With the case now set for a hearing on November 29, there was a temporary cloud of uncertainty hanging over MCX's transition plans. However, SEBI's Technical Advisory Committee subsequently reviewed the situation and has given its go-ahead to the migration to TCS’ platform.

(Edited by : Ajay Vaishnav)

First Published:Oct 6, 2023 4:20 PM IST