What is the MCX's current market share in commodity derivatives?

MCX currently commands 99% of India's commodity derivatives market share.

What is ANMI asking Sebi to do regarding market making?

ANMI is asking Sebi to extend equity-style market making rules to the commodity derivatives segment.

How could market making rules impact commodity trading?

Harmonized rules could increase competition, liquidity, and potentially reduce MCX's dominance, benefiting traders with tighter spreads.

Home / Business and Economy / Market Makers Challenge MCX Monopoly

Market Makers Challenge MCX Monopoly

19 Jan

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Summary

Brokers seek harmonized market-making rules for equity and commodity derivatives.
Proposal could challenge MCX's near-monopoly in India's commodity market.
ANMI requested Sebi to extend equity-style market making to commodity derivatives.

Brokers have called on India's securities regulator to implement uniform market-making rules for both equity and commodity derivatives. This significant proposal could disrupt the near-monopoly held by the Multi Commodity Exchange (MCX) in the commodity derivatives sector. The Association of National Exchanges Members of India (ANMI) officially requested the Securities and Exchange Board of India (Sebi) to extend equity-style market making to commodity derivatives.

Currently, exchanges can offer market-making incentives for stocks, even if they are already liquid on other bourses. However, this facility is restricted for commodity contracts already active on another exchange, unless that exchange also offers the same incentive. ANMI argues that extending these incentives would promote inter-exchange competition and deepen market liquidity for investor benefit, especially under the unified exchange license framework.