Here is a very big relief for the MCX Commodity players, FMC allowed MCX to launch contracts up to March 2015 as soon as a new technology agreement is signed between MCX and FTIL. FMC has also directed MCX to take all pending actions based on the findings of a PricewaterhouseCoopers (PwC) report and furnish an updated compliance report by 15 October 2014.
In December 2013, FMC(Forward Market Commission) declared FTIL(Financial Technologies) unfit to hold a stake in any commodity exchange and ordered FT to sell its stake in MCX. FTIL has sold its 21% stake to Kotak Mahindra Bank Ltd, Rakesh Jhunjhunwala and other well know investors. FTIL sold its 15 percent stake in MCX to Kotak Mahindra Bank for Rs 459 crore.
MCX allowing new contracts till March 2015 will definitely a welcoming move among commodity traders and brokers, especially the commodity hedgers are the real beneficiaries as traders struggle to hedge instruments like copper,silver which had currently only one contract in open for trading/hedging.