Dear All,
MCX went live with its new Trading Platform - Commodity Derivatives Platform from Monday 16th October 2023. On 16 Oct, the Trading on MCX commenced at 10:45 AM instead of usual 9:00 AM.
While we went live and trading opened at 10:45 AM, we noticed delays in getting updates of trades taken by our users, ie getting confirmations from the exchange about Order Status and when users tried to modify the orders or cancel them, these orders went in Transit state. We continued to be in touch with the exchange through the day, however the exchange confirmed that there are technical issued on MCX and it will take some time for same to be resolved fully.
As a result, to ensure that we do not risk more customers to trade, we halted fresh orders from being sent to exchange and allowed on existing orders to be square off. However as the main trading system of MCX continued to be down for us, we were limited to squaring off directly on MCX via broker access on Exchange. As exchange was unable to send us updates, the status of the square-off orders did not reflect on user’s positions and orders immediately. This will be updated after markets close today.
Post Update: (at 16 Oct, 10:30 PM)
MCX Exchange teams has informed us that they are making changes and deploying same tonight. We will test it along with them before deploying any changes to our systems and opening for fresh trades in commodities. We will keep our users posted about same.
Post Update: (at 17 Oct, 00:30AM)
MCX has deployed changes at their end and confirmed that they have pushed same to its trading systems. We will test these changes at our end when markets open at 9:00 AM on 17 Oct and accordingly decide on opening fresh positions for commodities on MCX.
Post Update: (at 17 Oct, 09:45 AM)
We have opened MCX commodity trades for fresh trades and positions.
Post Update: (at 17 Oct, 10:47 PM)
MCX was down once again across for trades on Crude Oil and Natural Gas. This issue / downtime was reported across all trading platforms from 10:00 PM to 10:45 PM.
Open Positions / Square-off:
Users can now trade in fresh or square-off existing positions. For positions that have been opened overnight and could not be executed, we are closing them with MCX. All pending requests on MCX trades are being connected by our Customer Service teams.
Why MCX worked for other trading platforms v/s Dhan
Exchanges like MCX work on multiple protocols, one of them is FIX (Financial Information eXchange) which is a globally accepted protocol that is used by Stock Exchanges to transmit information via trading platforms. MCX supports FIX which we use at Dhan. We participated in all mock trading and ensured our trading systems worked perfectly in pre-production, however the exchange systems that connected via FIX did not transmit trade informations seamlessly when they were moved in production on new Commodity Trading platform. Most of the brokers in India including some of the largest ones have outsourced or third party Order and Risk Management systems, while we at Dhan have in-house capabilities for same. Different brokers connect via different exchange protocols while we connect via FIX.
Please note, Dhan is #3 largest stock trading platform on MCX and it is absolutely important for us to ensure trading systems are completely tested so that we are able to provide a seamless trading experience to our users. Our teams have been in touch with exchange through the day on 16 Oct and we still continue to work with the teams to resolve the technical issue on the exchange at the earliest. We do understand that is it very frustrating for our users, however it was absolutely essential for us to not risk more users / trades had stop fresh orders.
Thank you
Pravin
