MCX Faces Technical Glitch, Delays Trading Start; Gold and Silver Futures Decline
MCX experienced a technical issue on Monday, delaying trading start from 9:00 AM to 9:30 AM. Operations resumed using the Disaster Recovery site. This follows similar disruptions in July 2023 and February 2022. Despite the glitch, precious metals futures trading continued, with gold and silver futures showing declines attributed to easing U.S.-China trade tensions.
*this image is generated using AI for illustrative purposes only.
Multi Commodity Exchange (MCX), India's largest commodity derivatives exchange, experienced a technical setback on Monday, causing a delay in the start of trading operations. The exchange, which typically begins trading at 9:00 AM, postponed the opening until 9:30 AM due to the technical issue.
Trading Resumes from Disaster Recovery Site
MCX managed to resume operations by switching to its Disaster Recovery site, ensuring continuity of trading activities. This incident marks another in a series of technical disruptions that have affected the exchange in recent times.
Recent Technical Challenges
This is not an isolated incident for MCX. The exchange has faced similar technical issues in the recent past:
| Date | Incident |
|---|---|
| July 2023 | Trading delayed by over an hour |
| February 2022 | Operations suspended for four hours during a trading platform transition |
The exact cause of the current technical problem was not specified by the exchange.
Impact on Precious Metals Futures
Despite the technical glitch, trading in precious metals futures continued, with notable movements observed:
| Metal | Contract | Price Change | Closing Price |
|---|---|---|---|
| Gold | December Futures | -2.02% | ₹120,957.00 per 10 grams |
| Silver | December Futures | -2.78% | ₹143,367.00 per kilogram |
The decline in gold and silver futures prices is attributed to easing U.S.-China trade tensions, which has reduced the demand for these metals as safe-haven assets.
Market Implications
This incident highlights the critical importance of robust technological infrastructure in modern financial markets. As exchanges increasingly rely on complex systems to facilitate trading, the occurrence of such glitches can have significant impacts on market operations and investor confidence.
For MCX, addressing these recurring technical issues may be crucial to maintaining its position as a leading commodity derivatives exchange and ensuring smooth trading experiences for market participants.
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