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MCX Loses 40% of Total Open Interest In The Last Few Days

While MCX Shares hit upper circuits everyday, something’s wrong with the picture here.

Value of all Open Interest on MCX

The open interest is what is carried over to the next trading day. Volumes can be invented but inventing OI is difficult as the exchange has to have that cash

The NSEL Crisis may have caused MCX to have lost share price value (about 60% down, it was). However contracts continued to trade, and the value of the open interest remained high).

But since 26 August, things have changed for the worse. Total OI value is now around 10,000 cr. (versus 17,000 cr. a month at the start).

Can this mean members are taking their business away? It might have also got to do with the increase in commodity margins – sometimes a doubling or a tripling, However, that should affect other exchanges, like NCDEX too. Here’s the NCDEX OI Value:

Value of all open interest in NCDEX

OI values have remained steady.

MCX has lost a lot of interest in Crude Oil and Lead. Most others seem to be okay. But a buyer of MCX – if different from the FT group – will need to have these issues addressed!

  • It seems NCDEX is garnering some market share in Non-Ag commodities like Crude Oil, at the expense of MCX.

  • Harmeet says:

    Can it be cause of expiry of major products and people are not rolling over ?? a month of data is very small sample size may be better to look over longer period probably around an year to see whats the trend is like …

  • AVV says:

    Deepak
    Headline say 80% the blog body says 17000 to 10000 cr. which one is correct?

  • rishi says:

    It would be great if you post the latest OI numbers or point me to where you source those numbers from. I couldnt find it online.
    What I did find is the total trading volume (from the mcx website) and Sept doesnt look that bad so far. But, as you have rightly pointed out this number can be easily manipulated.
    Jan 2013 129,736,453
    Feb 2013 121,536,189
    Mar 2013 109,414,074
    Apr 2013 132,615,641
    May 2013 121,927,153
    Jun 2013 120,449,753
    Jul 2013 77,612,516
    Aug 2013 74,630,303
    Sep 2013 32,069,384