MCX India to change trading timing for certain commodities to match daylight saving; Check

The Multi Commodity Exchange of India (MCX) will change the trading timing with effect from March 14, Monday, in order to adjust to the US Day Light Saving Timings (DLS). 

The trading for the Internationally Referenceable Agri commodities such as cotton, CPO & kapas will now be from 9am to 9pm. The timing for the other commodities will remain the same - 9am to 5pm. 

The Multi Commodity Exchange on February 14 had informed about the revised trading timing in terms of the rules, Bye-Laws and the Business Rules of the exchange. 

The client code modification for the trades done during the daylight savings time frame will be immediately after the closing time of the trade and for about 15 minutes.

The idea of day light saving (DST), is to save on the cost of lighting, when during the summer the sun rises and sets one hour late. India along with Japan and China are the only industrialised nations that do not observe DST. 

Sanctions on Russia affect Global crude oil, commodity markets

It's important to note that the commodities markets are in the bull market currently because of the Russia-Ukraine war. Russia is an important player in the world's crude oil market and the supplies impacted from Russia because of the sanctions has created a lot of uncertainty in the Global crude oil and commodity markets.

In September last year, the average daily trading volumes of commodities at the MCX India dropped drastically. However, rivals like BSE, NCDEX, etc were clocking relatively higher volumes. Strikingly, the bullion trading, a stronghold of MCX India had also declined, as reported by PTI.

The company's declining business performance coincided with some top level management exits. According to some analysts quoted by PTI, the exchange's trading volumes fall in major commodities coincides with the resignation of the Chief Technlogy Officer (CTO) Manav Jain, another senior technology official and some board members.

According to Securities and Exchange Board of India's (SEBI) latest annual report, there is a lot of potential in the commodity derivative markets for the Indian economy as they enable efficient price discovery, provide better risk management, etc, however, the scale of participation by corporates, hedgers and institutional investors is still in a nascent stage.    

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