MCX board appoints forensic auditor for trading software

Move follows a Sebi directive asking MCX to ascertain whether software is best among available

The Board of Directors of Multi Commodity Exchange Ltd took a decision on Wednesday, to appoint a forensic auditor for software provided by ODIN. The vendor company is owned and operated by 63 Moons Technologies Ltd, which was earlier known as Financial Technologies India Ltd (FTIL).

The move follows a Sebi directive asking the exchange to get the special audit done for the software, to ascertain whether it is among the best available and whether continuing with the same service provider -- since inception 13 years ago  -- has put trading members who use FTIL software for their own operations at an unfair advantage.

MCX declined to provide any information but informed the BSE, “We would like to state that Sebi had written to us (on undertaking forensic audit of the software) which pertains to prior period starting from April 01, 2007 to July 31, 2013, and the Exchange is acting appropriately in this regard. This matter being under regulatory purview, its details cannot be furnished at this juncture.”

ODIN is owned by the FTIL, which sold its 26 per cent stake in MCX in 2014. However, the software agreement with them was renegotiated by the exchange to bring down the cost. The same service provider provides the software to brokers as well. In the past MCX management used to decide such special audits but this time the board has appointed an auditor, whose name, however, was not disclosed.