MCX claims technical glitch that resulted in multiple outages resolved

SEBI asked the exchange to find out what went wrong after trading halted four times in two months

Multi Commodity Exchange (MCX) claims it has resolved the technical fault which halted its trading four times in the last two months. The exchange said, “ MCX has implemented a solution to prevent this issue in the system."

Following repeated technical glitches, market regulator Securities and Exchange Board of India (SEBI) asked the exchange to take corrective action. There were also reports of SEBI launching an independent audit of MCX technology, but this could not be confirmed. Sources said that the regulator hasn't taken any such step as yet. 

Sources also said that the problem was due to issues in synchronisation of hardware and operating system. “MCX and its vendors — for software, hardware and the operating system —  have carried out a detailed analysis of log records and concluded that the glitches occurred due to a low-level TCP (transmission control protocol) packet transmission issue.“

The market was very volatile following the halts which is what traders like. This has raised eyebrows. However, sources confirmed that there was a genuine glitch in the hardware. The software, provided by 63 Moon Technologies, was not at fault.