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What are MCX and NCDEX
MCX or Multi Commodity Exchange of India Ltd is an electronic commodity futures trading exchange. National Commodity & Derivates Exchange Limited or NCDEX is an online multi commodity trading exchange. In a world where investors are increasingly turning to the internet for their trading and transactions, trading exchanges like MCX and NCDEX are gaining popularity by leaps and bounds. A comparative study of the two portals is often undertaken by investors. In fact MCX Vs NCDEX is an interesting subject and is likely to yield interesting results.
About MCX and NCDEX
MCX started its operations in November 2003 and NCDEX in April 2003. Both exchanges have their headquarters in Mumbai and both MCX and NCDEX have been demutualised. Whereas MCX specialises in bullions and precious metals like gold and silver, NCDEX is highly trusted for the trading of agri-based products like oil and oil seeds, cereals, etc.
In fact it is a fact well-known among the investor community that MCX is the best platform for trading gold and silver and other globally traded metals and NCDEX provides the best returns in trading of agri-based products.
MCX Vs NCDEX – Commodities traded:
MCX deals in the trading of 40 commodities which include bullions, precious metals, plantations and more; and NCDEX offers 34 commodities of which 23 are agri-based and the rest include precious metals, energy, polymer, etc. To increase the convenience of trading for its members and promote fair-trade, both MCX and NCDEX have several nationalised as well as private sector banks that take care of the clearings and transactions for its members. NCDEX has fifteen and MCX sixteen banks empanelled as its clearing banks.
| MCX Clearing banks: |
NCDEX Clearing banks: |
Axis Bank Ltd
Bank Of India
Canara Bank
Citibank n.a.
Corporation Bank
Development credit bank ltd
Dhanlaxmi bank
HDFC bank
ICICI bank
Indusind bank
Kotak mahindra bank ltd.
Punjab National Bank
State Bank of India
Tamilnad Mercantile Bank Ltd |
Axis Bank Limited
Bank of India
Canara Bank
Development Credit Bank Limited
Dhanlaxmi Bank Limited
HDFC Bank Limited
ICICI Bank Limited
IndusInd Bank Limited
Kotak Mahindra Bank Ltd
Punjab National Bank
Standard Chartered Bank Ltd
State Bank of India
Tamilnad Mercantile Bank Limited
Union Bank of India
Union Bank Of India
Yes bank
|
MCX Vs NCDEX: Promoters and shareholders
NCDEX is the single commodity exchange in India that is promoted by institutions like ICICI Bank Limited, NABARD, LIC, and NSE. On the other hand the promoters of the MCX include international names like National Spot Exchange Limited (NSEL), Singapore Mercantile Exchange (SMX), Bahrain Financial Exchange (BFX), Global Board of Trade (GBOT) and more.
MCX and NCDEX - Technology
Both MCX and NCDEX use state-of-the-art technological infrastructure to facilitate fast and error free trading for its members. Both MCX and NCDEX operate on weekdays (Monday to Friday) during which new member registrations can happen. Both Exchanges ensure that all member requests are resolved at the earliest and with minimum possible glitch. The online trading platforms of MCX and NCDEX can be accessed by all members throughout the country with computer-to-computer link (“CTCL”) as well as through trader workstations with the use of multiple connectivity media like VPN, VSATs, leased lines and internet.
MCX Vs NCDEX: websites
The official website for the MCX is www.mcxindia.com and that for the NCDEX is www.ncdex.com. Both these Exchanges ensure that their websites offer all information that might be of help to an existing member or a prospective member. All related market data including rates of various commodities, indices, overall market performance can be tracked from their websites. In addition to that, all information related to the Exchanges like the details of their shareholders, promoters, awards, press releases, procedures of trading, dos and don’ts of trading, etc. are also available on their websites.
On the whole, it can safely be concluded that since NCDEX and MCX deal in different commodities, they cannot be straight away classified or judged against each other. The type of commodity to be traded should determine the platform and not the other way round. Every sensible investor should in fact become members of both Exchanges in order to make the most of a good market and to curb losses relatively when markets are down. Considering the volatile nature of the global markets at present, trading should be distributed among various commodities and therefore, among various commodity trading exchanges.
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