NMCE signs up with MCX for front-end brokerage solutions

MUMBAI: Broking members of Ahmedabad-based National Multi-Commodity Exchange (NMCE) will now be able to punch in orders using the front-end trading technology provided by Financial Technologies, promoter of commodity bourse MCX.

The front-end technology, Odin, with an 80% market share among the country's broking community, including banks and institutions, enables trading on multiple exchange markets from a single application.

The integration of NMCE on Odin will help a broking member of NMCE save on costs as earlier he had to install a separate terminal to trade on the exchange. It will also improve the reach of NMCE among users of ODIN who till recently did not have access to the exchange.

An agreement to integrate NMCE with Odin was signed between FT and NMCE on Wednesday in Mumbai. As per the agreement members of NMCE will have to buy Odin directly from FTIL and the charges will be based on the number of licenses issued to a particular member or broker. NMCE currently has 300 members who have agreed to buy ODIN solutions.

NMCE managing director Kailash Gupta said that this agreement will help members in price discovery and cross-exchange risk management. ODIN trading solutions are being used by the market participants in all the local exchanges like BSE, MCX Stock Exchange, NSE, MCX and NCDEX.

FTIL chairman Jignesh Shah said the agreement would provide a huge arbitrage opportunity within the exchanges in addition to price discovery and better risk management. Speaking on the sidelines of the conference, NMCE CEO Anil Mishra said the exchange was planning to raise close to Rs 50 crore for expansion by selling shares to private equity investors and overseas commodity exchanges.

At present, 28 commodities are traded on NMCE including pepper, rubber, soybean oil and silver. "NMCE will soon launch a mini gold contract and talks are still on with the regulator FMC," he added.