Multi Commodity Exchange faces trading disruption amid persistent technical issues

Update: Trading has resumed at MCX around 1.30 pm after a nearly 4 hour halt during which the exchange had to activate its disaster recovery (DR) site.

Trading on the Multi Commodity Exchange of India Ltd (MCX) was disrupted on Tuesday morning following a technical failure, prompting the exchange to activate its disaster recovery (DR) site. This marks the second time in four months that India’s largest commodity derivatives exchange has faced a delayed start to trading due to system glitches.

In a notice issued at 10.20 a.m., MCX stated, “The commencement of trading is delayed due to a technical issue. Trading will start from the DR site. The time of commencement of trading will be informed to market participants. Inconvenience is regretted.” A subsequent update at 11.05 am confirmed that operations would continue from the backup platform, though no timeline was given for resumption.

The DR site serves as a contingency system designed to maintain operations during disruptions to primary trading infrastructure. However, the repeated outages have drawn scrutiny from brokers and traders, many of whom have expressed frustration over the lack of timely communication and accountability.

Shares of MCX fell over 1 per cent in early trading on the National Stock Exchange following the announcement. Low-cost brokerage Zerodha also confirmed the delay on social media, saying, “There is a further delay in MCX opening. The revised time is not yet confirmed. We’ll share an update once it’s available.”

According to sources cited by NDTV Profit, the Exchange has been struggling with technical issues for the past two to three days. “Trading orders are not getting confirmed and the settlement files are not coming on time,” one source said, describing the disruption as “severe” for trade execution and settlements.

This is not an isolated event. MCX experienced a similar system outage on 23 July 2024, which also halted trading for several hours. The Commodity Participants Association of India (CPAI), representing brokers and traders, has repeatedly raised concerns about the reliability of the exchange’s systems. An article in Moneylife said association has sought a meeting with the MCX chairperson to discuss the recurring problems and is expecting a response by next week.

Market observers say the latest disruption raises questions about the robustness of MCX’s upgraded trading platform, which was launched to enhance speed and capacity. The Exchange has not yet disclosed whether Tuesday’s issue stemmed from the new system or from connectivity and data transmission faults.

MCX commands a near-monopoly in India’s commodity futures market, accounting for about 98 per cent of total trade value in FY 2024–25. As of March 2025, it had 544 registered members and 32,480 authorised persons nationwide.

With trading halted for much of the morning and the start time still uncertain, brokers are calling for greater transparency from the Exchange. “They need to explain publicly why these issues are recurring and why they cannot be resolved promptly. Someone has to take accountability,” one market participant wrote on social media, echoing the sentiment of many traders affected by the outage.

The latest episode is expected to intensify pressure on MCX’s management to strengthen its technological infrastructure and restore confidence among market participants.