MCX renews software support & managed services contract with Financial Technologies

Commodity bourse operator Multi Commodity Exchange of India Ltd (MCX) has renewed its tech support and managed software services contract with Financial Technologies (India) Ltd (FTIL), which recently sold all its stake in MCX.

MCX said it has executed amendment agreement which reduces the tenure of the contract up to October 2022.

The new contract also lowers the fixed charge for software support & managed services from Rs 2 crore to Rs 1.5 crore per month plus applicable taxes. It also lowers variable charge from 12.5 per cent of the gross transaction charges received by MCX on a monthly basis to 10.3 per cent, plus applicable taxes.

Due to this supplementary agreement, and based on the current volume of MCX and assuming MCX daily volume remain same, the negative impact on the total income of the company would be around Rs 8.82 crore for the period 2014-15, FTIL said.

In 2013-14 fiscal, MCX paid about Rs 60 crore to FTIL for giving technological support and services to the exchange.

On September 17, the commodity markets regulator FMC had said the exchange can launch new contracts for three months January, February and March of 2015 after if it signs a fresh technology deal with FTIL.

FTIL, till recently promoter of MCX, has sold all its stake in the commodity bourse. Part of the stake was bought by ace investor Rakesh Jhunjhunwala while a big chunk was picked by Kotak Mahindra Bank.

Shares of FTIL closed at RS 228.3 each, up 4.99 per cent while MCX scrip rose 3.73 per cent to end at Rs 815.85 a share, on the BSE in a flat Mumbai market on Monday.

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