Multi Commodity Exchange of India - Lower turnover impacted operating performance - Q3FY21 - ICICI Securities
Posted On:
2021-01-24 22:17:53
(Time Zone: Arizona, USA)
Positive developments for MCX include option pricing, but most of the growth optionalities (momentum in option pricing, introduction of cross-margin facilities for indices, incorporation of Indian commodity refiners, bank participation) remain on slow track. Near-term triggers would be reduction in crude margins further from 50% currently to ~25% while increasing the upfront margin regulations will be an overhang. In the medium term, it is likely that earnings will remain dependent largely on the volume of primary commodity futures.