MCX-SX to launch equity trading in Feb second week

After a long wait, India’s third stock exchange, MCX-SX, is all set to launch equity trading on its platform on February 9.

MCX-SX was keen to launch equity trading on its platform around Diwali last year, after its victory in a legal battle with the regulator, Securities and Exchange Board of India (Sebi). The launch got postponed due to delay in membership registration. In October 2012, the exchange claimed to have signed up 700 members across the country. Sebi officials said they have registered between 200 and 250 MCX-SX members till date.

Finance Minister P Chidambaram will ring the opening bell at MCX-SX in Mumbai, government officials in New Delhi said. On the same day, Chidambaram will also attend a joint conference organised by all stock exchanges and depository participants to flag off the Rajiv Gandhi Equity Savings Scheme (RGESS), announced by former finance minister Pranab Mukherjee in the 2012-13 Budget. Chidambaram has five appointments in the city during the day.

According to sources, while February 9 has been fixed as the date to launch both RGESS and MCX-SX equity segment, event organisers have been asked to block dates during February 8-15 to accommodate any last minute changes in the finance minister’s plan. While Chidambaram has attended many events at the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), this will mark his maiden presence at MCX-SX. Reliance Industries’ chairman Mukesh Ambani had inaugurated the groups commodity bourse MCX in 2003.

In response to a query on the matter, MCX said, “We do not comment on market speculation.”

MCX-SX is an aggressive player and its entry may see a three-way battle for market share in equity segment. While the BSE’s membership and trading fee is 90 per cent lower than the NSE, the latter is also extending sweeteners to brokers. MCX-SX has said its thrust would be on cash equity segment and developing bond trading. High statutory costs in cash equity segment is a major hurdle for growth of this segment.

MCX-SX will pitch its benchmark index SX 40 against NSE’s popular index S&P CNX Nifty and BSE’s Sensex. MCX-SX has said it would start trading with around 1,200 stocks that would be admitted for direct trading on its platform from NSE and BSE under the permitted-to-trade category rules.