MCX, the largest commodity exchange, has awarded the contract for setting up new commodity derivatives platform to Tata Consultancy Services.

The existing contract of the exchange with 63 moons (formerly Financial Technologies) ends in September 2022.

The Board of Directors of MCX at its meeting held on Thursday decided to award the contract for implementation of Commodity Derivatives Platform to Tata Consultancy Services, said the exchange in a statement.

Further, it was decided to issue Letter of Intent to TCS to commence the project immediately, it added.

Last October, MCX sought application from software companies to provide new trading and clearing software as the contract with existing 63 moons comes to an end in September 2022.

In the Request for Proposal issued, MCX said bidders should provide an earnest money deposit of ₹1.50 crore in the form of demand draft favouring MCX and the last date for submission of bids and financial proposal were October 23 and November 20.

The exchange seeks competitive proposals for supply, installation, implementation, training, support and maintenance of commodity derivatives platform having key functionalities.

Universal exchange

While the system will initially be used for commodity derivatives trading, it needs to be extensible to commodity spot, equity and equity-related derivatives, debt, currency derivatives and interest rate derivatives in order to achieve MCX vision of to becoming a Universal Exchange, the exchange had said.

MCX is determined to adopt platforms and systems that provide standard open interfaces and services that are compliant with regulatory framework and global best practices.

The commodity exchange expects the new software to support business expansion and meet international exchange standards in terms of business features, robust system, high performance and security.