| MCX-STOCK EXCHANGE CLEARING CORPORATION |
| MCX Stock Exchange Clearing Corporation,
approved by SEBI and RBI, commenced operations on
16th February 2009. It is the second clearing corporation
in India. It is a subsidiary of MCX Stock Exchange
with 51% equity ownership. The clearing corporation
has state-of-the-art risk management system, which
uses SPAN-based value-at-risk margining model apart
from various other online and offline risk management
tools. It provides counterparty guarantee, rendering
settlement of trades, devoid of counterparty risk.
HDFC Bank, ICICI Bank, Union Bank of India, State
Bank of India, Axis Bank, IndusInd Bank, Kotak Mahindra
Bank, and YES Bank are among the 52 clearing members
of the Clearing Corporation. |
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| THE ROAD AHEAD |
| The road ahead looks smooth considering
that policymakers are likely to bring in greater liberalisation.
This can be achieved by: |
- widening the number of currency and cross-currency
pairs, and other forex products that can be traded
on an exchange platform;
- introducing interest rate derivatives and simple
credit derivatives;
- allowing currency options trading;
- allowing corporate bonds;
- introducing newer options for delivery or cash
settlement;
- facilitating entry of FIIs and NRIs / overseas
participation;
- introducing new market segments such as MSMEs;
- increasing the lot size of currency futures
from the current size of US$ 1,000 and raising
the maximum permissible limit per client;
- extending trading hours from 5 p.m. to 11.30
p.m., which will enable us to cater to New York
and London; and
- moving towards full rupee convertibility, which
will most likely increase liquidity on the Exchange.
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| Photograph
Collection, Exchange Square, Mumbai |
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| Banyan
tree near the Town Hall, Bombay where
Premchand Roychand started trading in
1850s. |
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| The edifice
of MCX Stock Exchange is built on four
pillars—information, innovation,
education, and research. Innovations in
the areas of technology and market structure
have differentiated it’s model and
operations. |
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MCX Stock Exchange is poised to
extend its nationwide electronic platform to interest
rate futures (IRF), equities (cash and F&O). It
has already approached SEBI for permission to facilitate
trade in equity and other segments such as interest
rate derivatives. In the future, the Exchange will
offer new asset classes such as indices and ETF, fixed
income (debt), and provide an exclusive platform for
SMEs (small and medium enterprises), subject to regulatory
approvals.
MCX Stock Exchange plans to introduce the new ‘India
model’ for equity and other niche asset classes,
which will not only increase market participation
in a major way but also bring the ‘markets to
the masses’ for a more inclusive and participative
financial model across the population. |
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