MCX'S GLOBAL RANKING TAKES A BEATING

DOCKET  PREFACE  FIA REPORTS  REASON BEHIND THE FALL  MCX’S FISCAL REPORT  EXPERT's POINT OF VIEW

PREFACE  Multi Commodity Exchange of India Ltd (MCX) is an independent commodity exchange based in India Multi Commodity Exchange of India Ltd  The Exchange has an extensive national reach, with 1782 members, operations through 487,671 trading terminals (including CTCL), spanning over 1809 cities and towns across India

FIA REPORTS  India’s largest commodity exchange, MCX has slipped 14 positions in the past two years in the global ranking of exchanges by US–based Futures Industry Association (FIA)MCXFutures Industry Association  As per FIA, MCX slipped to 24th rank among 53 globally-renowned commodity and equity exchanges in 2014, compared with 10th rank in 2012 and 3rd among global commodity exchanges

REASON BEHIND THE FALL  The imposition of a commodity transaction tax ( CTT) was one of the biggest direct factors that seems to have affected trading on MCX  Within a month since its imposition turnover on MCX was down a clean 40 per cent

MCX’S FISCAL REPORT  In 2013, the number of contracts traded on MCX fell by 32 per cent to 26.5 crore from a year-ago period  The number of contracts traded on NCDEX declined by 28 per cent to 3.2 crore, pushing it to the ninth slot from No. 8 position a year agoNCDEX  In 2012, MCX was ranked 10th largest derivatives exchange by FIA in their Global Annual Volume Survey report on exchanges which erroneously clubbed volumes of MCX-SX and MCXGlobal Annual Volume Survey report

EXPERT’S POINT OF VIEW  The previous management had laid a vision to get MCX on top in global ranking with an average daily turnover of closed to Rs 100,000 crore in the next few years  The sheen has now gone off commodity markets and the average turnover, the number of brokers and new product launch have taken a hit in the past two years

THANK YOU