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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!


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