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The MCX Stock Exchange (MCX-SX) recorded average volumes of Rs 634 crore in its first year of operations in the equity segment.
This included trades worth an average of Rs 593 crore in the derivative segment and Rs 41 crore in the cash segment, according to data compiled by Business Standard. Meanwhile, the BSE had a derivative turnover of Rs 31,250 crore and cash turnover of Rs 2,013 crore. The corresponding numbers for the National Stock Exchange (NSE) are Rs 1.53 lakh crore and Rs 11,056 crore, respectively.
Shares of 37 companies changed hands on the MCX-SX in the cash segment, exchange data showed. BSE had 2,639 companies, which saw trading, while NSE had 1,276.
Dinesh Thakkar, chairman and managing director at Angel Broking, said more liquidity would help attract greater participation from market players.
“Actual participation from investors, both retail and institutional, for any equity platform comes in once liquidity picks up. Initially, it starts with market making and arbitrage volumes and then picks up. The process of building those volumes can take some time,” he said.
Prem A Singhal, who is registered as an individual broker in the equity cash and derivatives segment of the MCX-SX, said business had been slow overall. “There is little interest in trading on even larger exchanges such as the NSE and BSE. I have a MCX-SX membership but activity is limited,” he said.
Top 10 brokers on the bourse account for over 90 per cent of its cash volumes since inception, according to data from the Securities and Exchange Board of India (Sebi)’s latest monthly bulletin, which has data till December 2013. The top 10 brokers accounted for 99.7 per cent of its cash turnover in December, according to the data.
Its first day of operations saw cash volumes of Rs 69 lakhs and derivative turnover of Rs 11.84 crore. It hit a peak on July 26 when cash volumes climbed to Rs 150 crore and derivatives turnover was at Rs 2,145 crore.
This included trades worth an average of Rs 593 crore in the derivative segment and Rs 41 crore in the cash segment, according to data compiled by Business Standard. Meanwhile, the BSE had a derivative turnover of Rs 31,250 crore and cash turnover of Rs 2,013 crore. The corresponding numbers for the National Stock Exchange (NSE) are Rs 1.53 lakh crore and Rs 11,056 crore, respectively.
Shares of 37 companies changed hands on the MCX-SX in the cash segment, exchange data showed. BSE had 2,639 companies, which saw trading, while NSE had 1,276.
Dinesh Thakkar, chairman and managing director at Angel Broking, said more liquidity would help attract greater participation from market players.
“Actual participation from investors, both retail and institutional, for any equity platform comes in once liquidity picks up. Initially, it starts with market making and arbitrage volumes and then picks up. The process of building those volumes can take some time,” he said.
Prem A Singhal, who is registered as an individual broker in the equity cash and derivatives segment of the MCX-SX, said business had been slow overall. “There is little interest in trading on even larger exchanges such as the NSE and BSE. I have a MCX-SX membership but activity is limited,” he said.
Top 10 brokers on the bourse account for over 90 per cent of its cash volumes since inception, according to data from the Securities and Exchange Board of India (Sebi)’s latest monthly bulletin, which has data till December 2013. The top 10 brokers accounted for 99.7 per cent of its cash turnover in December, according to the data.
Its first day of operations saw cash volumes of Rs 69 lakhs and derivative turnover of Rs 11.84 crore. It hit a peak on July 26 when cash volumes climbed to Rs 150 crore and derivatives turnover was at Rs 2,145 crore.
The National Spot Exchange Limited (NSEL) payment crisis broke out afterwards and volumes have since declined from their peak. It came in at Rs 300 crore so far in the current month.
The MCX-SX has gone through a round of restructuring since the NSEL crisis, as the Sebi sought to ring-fence the exchange from any fallout. Its Board of directors saw some changes, and in November 2013, former home secretary G K Pillai was appointed chairman and Thomas Mathew T, head of LIC, was appointed vice-chairman. The new Board of the exchange has looked to insulate it from the NSEL crisis by taking steps to broaden shareholding and reviewing various contracts, according to various statements issued by MCX-SX.
Saurabh Sarkar, managing director and CEO, the MCX-SX, said the exchange, which was also present in the interest rate futures and currency derivative segments, would look at various avenues for growth, including introduction of new products in the days ahead.
"Going forward, we would focus on improving operational efficiency, growth of sustainable volumes, introduction of innovative products to attract retail investors and attract new companies to list on the exchange," he said in an emailed response.
The Financial Technologies India Ltd (FTIL) holds 99.99 per cent stake in NSEL, as well as a stake in the MCX-SX. FTIL and MCX have five per cent stake in MCX-SX, as well as warrants, which taken together are equivalent to over 70 per cent stake in the bourse.
