India’s Multi Commodity Exchange (MCX) said on Friday that the country’s market regulator has asked the company to suspend a new commodity derivatives platform planned to go live next week.
MCX said in a statement that the Securities and Exchange Board of India (SEBI) will discuss the commodity platform at its upcoming technical advisory committee meeting.
The exchange will continue to conduct mock testing on the platform until further instructions from SEBI, it added.
Earlier this week, MCX announced that its new commodity derivatives platform would go live on October 3 after multiple delays.
SEBI’s intervention comes at a time when investor group Chennai Financial Markets and Accountability (CFMA) has asked the market regulator to ensure that MCX requires technical support.
SEBI informed MCX that the CFMA has forwarded a letter dated September 27 regarding the new platform, which will be discussed at a meeting as there are “technical issues” involved, according to MCX’s exchange filing.
