If implemented, it will be the first commodity exchange to offer such a facility.

The Multi Commodity Exchange (MCX) plans to offer co-location facility to its broker members, which will allow them to host servers near the exchange’s trading platform, facilitating faster trades.

Also Read   Related Stories News Now - Pepper up in futures trade as spot demand rises - Almond futures down on profit-booking - Zinc futures up on spot market demand - Aluminium futures trade higher on spot demand - Gold futures rise on global cues - Mustardseed futures eases on selling pressure

Also Read   Related Stories News Now - Markets end lower ahead of May F&O expiry - Rupee closes at new low of 56.24 - Wall Street opens 1% lower on Europe - Shashi Ruia steps down from board of Essar Ports - Sebi allows firms listed on RSEs to migrate to main bourses More

An MCX spokesperson said, “We cannot comment on market rumours and speculations. We deny having any such plan.”

Forward Markets Commission (FMC) Chairman B C Khatua said he was not aware of such a move and the regulator had not been approached by the exchange so far.

A co-location facility is a data centre with racks for computer servers, which helps in execution of high-frequency trades. Globally, prominent commodity bourses like the Chicago Mercantile Exchange, the Liffe and the Tokyo Commodity Exchange provide this facility. In India, the country’s two premier stock exchanges – the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) –provide co-location to their members.

The main objective is to reduce latency in connections with the trading system, especially for electronic trading facilities like direct market access and algorithmic trading.

High-frequency trading through co-location is catching on in India. NSE was the first exchange to offer this to its members in August 2009, while BSE started it early this year. At present, about two per cent of equity volumes in India come through high-frequency trades, as compared with over 70 per cent in the US.

For a co-location facility, NSE charges Rs 20 lakh per rack and an annual fee of Rs 2.5 lakh for information technology services. For a half rack, it charges Rs 8.5 lakh plus a Rs 1.5-lakh annual fee. The exchange also charges a one-time initial set-up fee of Rs 1 lakh and Rs 50,000 for full and half-racks, respectively.

New Ipad Application :Business Standard's all new IPad App Click here to download for free Other Stories      - Markets end lower ahead of May F&O expiry - Rupee closes at new low of 56.24 - Wall Street opens 1% lower on Europe - Shashi Ruia steps down from board of Essar Ports - Sebi allows firms listed on RSEs to migrate to main bourses

Tags : MCX | co-location facility | faster trades | commodity futures | FMC | B C Khatua | NSE | BSE |   Read Business news in  Advertisements -  India's no. 1 Property Site. Click here to know more -  Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol. -  Journey on, We are by Your Side. Click here to know more -  Help a Child Achieve her. Click to know more -  "Discover The Power of One" -  Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol. -  Watch The Film Here. Click here to know more.. -  Leader in Passenger Car & Automobile Tyres. Click here -  Learn How One City is Running on FOOD SCRAPS. -  1 billion in saving for Unilever without any tangles. -  A Brand New Server at a Price That Fits Your Budget. Click here -  One Partnership Endless Possibilities. Click here to know more -  Helping doctors detect diseases earlier, saving costs & extending lives. -  36 Lakhs can get you a pool of Luxuries. Click here -  Which is the best plan for your daughter -  Check out the TRUE COLOURS of your Stocks, Now for FREE! -  One of the leading business schools in the world.Know More -  2 Lac Apartments, 1 Lac House / Plots. Click here