Technical Glitches at MCX came into sharp focus in October 2025 when India’s largest commodity derivatives exchange, Multi Commodity Exchange of India Limited, faced a trading disruption that delayed market operations for several hours. Although the exchange reported strong financial and operational performance for the quarter, the incident raised renewed questions about the resilience of its trading infrastructure at a time when volumes continue to scale rapidly.
On October 28, 2025, MCX encountered a technical issue that delayed the start of trading and forced a shift to its disaster recovery (DR) site. Consequently, trading began at 1:25 pm IST, well after the scheduled opening. During the Q2 FY26 earnings conference call, the management addressed the issue in detail and assured investors that the disruption was isolated and fully resolved.
According to Managing Director and Chief Executive Officer Praveena Rai, a predefined system parameter linked to reference data crossed an internal threshold. This data included elements such as unique client codes. As a result, certain gateway services failed to activate fully. Because the same configuration existed at both the primary data centre and the disaster recovery (DR) site, the issue continued even after the initial switchover. Therefore, the exchange had to take additional corrective steps before trading could resume.
Rai said the exchange quickly identified the problem and completed a detailed root cause analysis. Following this, MCX implemented corrective measures at both the primary site and the DR site. Trading was later restored to the main data centre. Since then, systems have been operating normally. Management also stated that the trading platform has remained stable in the past and described the disruption as a one-off event.
At the same time, MCX acknowledged the support it received from member brokers, vendors, partners, and regulators during the disruption. Meanwhile, analysts raised concerns about whether the incident could attract closer regulatory scrutiny. This came after an earlier clearing-related operational issue in the same year.
In response, MCX said it has followed all standard procedures. These include reporting and engagement with the Securities and Exchange Board of India (SEBI). However, management avoided commenting on possible penalties or regulatory outcomes. It stated that any discussion would be premature until the review process is complete.
Notably, the incident occurred during a period of strong performance for the exchange. In Q2 FY26, MCX reported a 29% year-on-year increase in consolidated total income to ₹400.79 crore. Additionally, average daily turnover rose sharply to ₹4.11 lakh crore, driven largely by a surge in options trading. As participation widens and new products-such as bullion index options-enter the market, system reliability has become increasingly critical.
Therefore, MCX reiterated its commitment to ongoing technology investments. Management confirmed that upgrades already form part of its growth strategy and will continue to support higher trading volumes. Although the exchange does not expect a significant increase in technology spending beyond planned levels. It will closely monitor system capacity and performance.
In conclusion, Technical Glitches at MCX underscore an important consideration for investors and market participants alike. As the exchange expands rapidly, even isolated disruptions can influence market confidence, regulatory attention, and valuations, making infrastructure resilience a key factor to watch going forward.
