MCX and Financial Technologies

I am not sure they have made any public announcement on this, but the following evidence is available to draw your own conclusions. From the Circulars section on their website, you can see the following

• Since early-mid November – the frequency and duration of mock trading sessions on the new system has been increasing. The Dec 17 Mock Trading session was of a 4 hour duration

• They also seem to be going through the paces of running the new platform from the Disaster Recovery site / and they are building some protocols for reporting technical glitches, if they occur, going forward

• I do not have enough knowledge to know what is pending – but it does seem as though the platform is increasingly stable to deploy

From a risk perspective,

• I would have thought that the new platform and old platform would run in parallel for some time. This does not seem to be the case yet (perhaps some experts with a better IT background may have a sharper view). I don’t know if that is a practical solution – but it does appear that if it is, then there really isn’t sufficient time for this to happen if they are going to switch over in less than 2 weeks.
• However, from a risk mitigation perspective, my understanding is that they can in any case keep the 63moons platform running in parallel as a back-up (even without 63moons support). This was one of the options they were mentioning for this current quarter before they re-signed 63moons. Perhaps the regulator was uncomfortable to the 63moons platform being the main platform and not having any technical support (but may be willing to accept this solution if it is the back-up platform)?

My own conclusions (based on nothing other than their public information and perhaps my biases) are

• They seem to be on the way to make the transition to the platform by the month end. It would be disappointing if they don’t and have not made any disclosure to that effect with 2 weeks to go
• The platform is probably not live tested as it should be – and even though there could be back-up options, they next 3-6 months could be a bit nervy. They might ‘save’ on the short term ‘extortionist’ fees from 63moon for another quarter – but I hope it does not come back to bite

Discl: Am invested so likely to be biased