MCX grabs highest market share since October

Written by fe Bureau | New Delhi | Updated: Aug 19 2014, 07:34am hrs
The market share of Multi Commodity Exchange of India (MCX) in the first fortnight of August hit 83.4%, the highest since October last year, the exchange said on Monday.

The market share of the country's largest exchange started falling at a fast pace after October last year, as a R5,600-crore settlement crisis at the National Spot Exchange Limited (NSEL), a group firm, on top of a 0.01% transaction tax on non-farm futures trading, hit hard.

While MCX had grabbed a market share of 86% during July-September quarter last year, its dominance declined and the market share dropped to 78.4% in the second half of the last fiscal.

However, MCXs market share has held steady at above 80% starting April 2014. Already, gold delivery on the MCX platform against August contract hit the highest since April last year. It witnessed the delivery of 1,159 kg against the August contract, the highest since that of 1,388 kg in April 2013, and sharply higher than that of just 4 kg in February this year.

Importantly, this was for the first time that delivery has crossed the 1000-kg level after the 0.01% transaction tax was imposed on non-farm futures in July last year.