Pune Trading Mechanism

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Trading Mechanism at MCX


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Monday to Friday

Agricultural commodities:

10.00 a.m. to 5.00 p.m.

Bullion, Metals, Energy and Plastics10.00 a.m. to 11.30 p.m.

Saturday (all commodities)

10.00 a.m. to 2.00 p.m.

Holidays notified in advance

Trading Session


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Online Trading

Automated screen-based trading

National reach

Transparent, objective and fair system for automatic ordermatching

Identity of the trader undisclosed

Flexibility for placing orders


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Online Trading contd..

Online market information

Price quotes in Indian Rupees

Square-off facility


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Contract specifications

Trading

Trading period

Trading session

Trading unit

Quotation/Base Value Price quote

Maximum order size

Tick size (minimum price movement)

Daily price limits

Initial margin

Special margin

Maximum allowable open position


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Quantity fields-TWS

Commodities Weight Lot Quotation

Gold kg1 1 grms11

Silver kg11 1 kg1

Copper MT1 1 kg1Crude Oil BBL111 1 BBL1


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Types of order

Price related conditions

Limit Order :- specifying the price at which the trade should

be executed

Market Order:-To be executed at prevailing price. if there isno market order at that point of time, it takes the last traded

price & remains in the system.

Stop loss Order:- Remains in the system inactive/abeyance

mode and is activated only on trigger of the price, definedby member.


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Types of order

Time related conditions

Day Order

Available for execution during the Trading Day until

executed or cancelled Unexecuted Day orders get cancelled at EOD

Good Till Cancelled (GTC)

Available for execution till expiry of the contract or till it iscancelled, whichever is earlier


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Types of order

Time related conditions

Immediate or Cancel (IOC)

Order gets cancelled if not executed

Good Till Date (GTD)

Available for execution till end of the specified date or tillthe last trading day of the contract month, whichever is

earlier


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Order matching

Price time priority

Best Buy Order Best Sell Order

Order modification & cancellation

Unique order no./trade no.


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Polling of Spot Prices

Prices polled from physical markets between 10.00 a.m. and 5.00 p.m.

Telephonic conversation recorded

During last 15 days prior, the number of participants increases to 15

Disseminated instantaneously

* On the Price Ticker in TWS

* Updated in Underlying Asset Price in Market Watch


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Polling of Spot Prices - Sources

Source list defined Commodity-wise & categorized

Prices polled from business participants like traders, millers,whole sellers, exporters, importers and different service

providers etc.

Source list vetted by Product Specialist and approved after duediligence

In some commodities like mentha oil, potato, pulses pricespolled from minimum 30 sources


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Energy: Brent Crude Oil, Furnace Oil and ME Sour Crude Oil

Fibre: Cotton short Staple and Kapas

Metals: Copper, Sponge Iron and Steel Flat

Oilseeds: Castor Seed, Groundnut Oil and Sesameseed

Spices: Red Chilli

Others: Cashew Kernel

Bullion: Gold, Gold Mini, Silver and Silver Mini

Energy: Crude Oil

Fibre: Cotton Long, Cotton Medium and Cotton Yarn

Grains: Basmati Rice, Maize, Rice, Sarbati Rice and Wheat

Jaggery: Gur Chaku Sugar M and Sugar S

Metals: Aluminium, Lead, Nickel, Tin, Steel Long andZinc

Oilseeds (edible): Crude Palm Oil, Coconut Oil, Coconut Oilcake, Mustard Oil,

Mustard Seed, RBD Palmolein, Soy Seed, Soy Meal, Sunflower Oil and Rice

Bran Oil

Oilseeds (non-edible): Castor Oil, Cotton Seed and Kapasia KhalliPetro-chemicals: PPTQ, HDPEHM and PVC

Spices: Black Pepper, Cardamomand Jeera

Others: Arecanut, Rubber and Potato

Pulses: Chana, Masur and Yellow Peas

Others: Guar Seed, Guar Gum and Mentha Oil

Thrice a day

* 10:30 am to 12:30 pm

* 2:00 pm to 3:00 pm

* 3:45 pm to 4:30 pm

Twice a day

* 10:00 am to 12:30 pm

* 3:45 pm to 4:30 pm

Once a day* 10:00 am to 12:30 pm

Polling of Spot Prices - Duration


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Polling of Spot Prices - Validation

Out of the range prices are

eliminated from the polled prices

and average of the remaining prices

taken

In case of higher price volatility,

price are polled from large number

of participants

In case of contracts having open

interest and liquidity, crossverification of polled prices with

business development team,

branch (s) etc.

NAME NUMBER PRICE Rs. REMARKS

A1 11111 1200

A2 22222 1205

A3 33333 1206

A4 44444 1200

A5 55555 1205

A6 66666 1209 Eliminated

A7 77777 1195 Eliminated

A8 88888 1206

A9 99999 1205

Spot Price 1203.85


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Due date rate is the final settlement price for particular future contract &calculation process called computation of DDR.

Due date rate is calculated by taking simple average of specific number ofdays (1, 3 or 5) prior to expiry of the contract as specified in the contracts

Monitoring spot price 15 days prior to the expiry

Polling is increased during DDR period and maximum no of participants are

called

Due Date Rate


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Close Price

Close Price * System generated at the end of the day * Formula

Close price is the weighted average price of all trades

executed during last 30 minutes in a given contract.

If less than 5 trades during last 30 minutes, then last 5trades executed during a trading day

If less than 5 trades during the day, then all trades.

If no trades is executed, last closing price.

However, the Exchange can modify such price in case ofsignificant movement in the spot market


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Function Keys

Shift+F8 Contract Specification

F1 Buy Order (+)Surveillance Watch

F2 Sell Order (-)

F3 - Order Book

F4 - Market Watch

F5 - Market picture

F8 - Trade Book

Net position


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Logon screen


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Market Watch Screen


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Ticker


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Contract Information


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Order entry - Sell


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Order Entry - Buy


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Order - Validity


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Order Entry Stop loss sell order


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Order entry Stop loss - Buy


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Order Book - All


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Trade book - All


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Net Position book


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Market Picture Best five Buy - Sell


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Surveillance Watch


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Messages Log


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Thank You


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Disclaimer

This presentation has been prepared to provide awareness & information

purpose only. While every effort has been made to assure the accuracy of

the information contained herein, any affirmation of fact in this presentation

material shall not create an express or implied warranty that any example or

description is correct. This material has been made available on thecondition that errors or omissions shall not be made the basis for any

claims, demands or cause of action. The information provided, has been

taken from sources believed to be reliable, but is not guaranteed by the

FTKMC as to accuracy or completeness , and is intended for the purposes

of education and information only. The Rules and Regulations of the

Exchange should be consulted as the authoritative source on all contract

specifications and regulations.

Documents

Pune Trading Mechanism