The Multi Commodity Exchange of India on Friday said the four-hour trading delay on Tuesday was due to a pre-defined parameter limit related to reference data like unique client code (UCC) configured within systems. This limit led to constraints when UCC activity went beyond the threshold, and that trading systems did not have issues.
It added, “We have taken steps to address the constraints to prevent similar issues in the future. Exchange systems are well positioned to support market volumes and growth. We remain committed to strengthening our operational robustness and will continue investing in cutting-edge technology to enhance performance, reliability, and scalability, ensuring that we meet the evolving needs of our members, participants and stakeholders.”
Despite the four-hour glitch, the total contracts traded on Tuesday exceeded October’s average daily volume by 13.5% and total value traded was 166% higher than daily average for the month.
This happened amid heightened volatility in prices of commodities like gold and silver. People holding long gold positions could not exit in the morning and their losses increased as prices of the underlying slipped further by the time operations shifted to a disaster recovery site. Experts said the glitch added to the volatility and traders found new opportunities in the afternoon.
