MCX-SX gains a major advantage in currency trades

With their new currency derivative segment MCX-SX has ruled over NSE which used to rule the stock markets. Jignesh Shah has a major hand in the success and prosperity of MCX-SX, and he was the one who supported this exchange platform with the help of his trading firm FTIL.

The turnover also has exceeded in the span of these last 18 months and the two players of this segment are MCX-SX and NSE but due to their new share growth in the capital market strategy MCX-SX has emerged victorious in the whole war. The percentage is 30% higher since the month of February.

Share market experts have claimed that MCX traders are going to be more active in the currency future from what they are now. Therefore, there are more chances for NSE to lose their traders to MCX-SX. Mr. Pramit, the CEO of Alpari India on this event said that the NSE derivative market is mostly comprised of foreign and domestic investors. DII, who is also one of their investors does not seem to participate, due to the lack of their currency exposure and FII due to some restrictions from RBI, which eventually will lower the shares of NSE in the market.

According to Mr. Vikram Murarka, speculative trading is the reason behind the increasing volume of the future currency market, which in turn demotivates the interested exporters and importers as they have to visit the bank for even minor dollar payment. It could later be the cause of these people to shift to MCX-SX for the trading purpose.

The Currency derivative head of Bonanza Portfolio, Jatin Damani says that about 25% currency futures volume would support corporate hedging, whereas about 78% supports arbitrage of commodity traders, retail trading, and proprietary trading.

The contracts in new currency pairs could also be a factor supporting this sudden shift from NSE to MCX-SX.

The ferocious clash between National Stock Exchange (NSE) and MCX-SX

With each passing day, the matter of the prevailing clash of National Stock Exchange (NSE) and MCX-SX is taking intriguing turns as the search for the final solution hasn’t halted till now. With a number of orders of buying and selling of shares, bonds, currency and their derivative contracts at stake, the stock market has turned into nothing less than a battlefield. The ferocious duel involves National Stock Exchange (NSE) and MCX-SX which stand in sharp contrast to each other and are diametrically opposite. MCX-SX is the newest stock exchange in India which is promoted by Financial Technologies group of Jignesh Shah, who is often acknowledged as the ‘Innovator of Modern Financial Markets’ and has delivered an unparalleled role in creating a successful Public Private Partnership (PPP) model  to build world-class financial institutions. With a virtual monopoly in stock derivatives and more than 50 percent of net profit margin, NSE enjoys formidable presence across the country.

The rivalry between National Stock Exchange and MCX-SX can be traced down to a number of years in the history.  However, an intense and heated pitch has been reached lately in last few weeks. NSE is portrayed as a monopolist who is not in favor of competition. On the other hand, Jignesh Shah’s group is portrayed as a disruptive fighter that must be restricted by NSE.

In order to debase and demean each other, both NSE and MCX-SX have unleashed an information war and keep the media, regulators and courts updated about each other. The clash between them has highlighted the way the stock market is run in the country. NSE is going the extra mile to dismiss the prevailing notions of it being a slumbering giant. On the other hand, MCX-SX is striving to assert its credibility and integrity.