MCX Q1 review – short shot; The long-term outlook remains positive: Motilal Oswal


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A special research section of BQ Blue brings together quality and fundamental research reports on capital and economics from all major Indian brokerage houses, asset managers and research agencies. These reports offer BloombergQuint subscribers the opportunity to broaden their understanding of companies, sectors and the economy.

India Ltd. Multi-Commodity Exchange in Q1 FY22 recorded further normalization of lever volume, mainly driven by a 24% / 13% reduction in gold / silver volumes.

This was partially offset by a 49 percent increase in crude oil volumes by abolishing previously imposed higher margin requirements.

Total average daily turnover decreased by 9.8% compared to the previous quarter, leading to a sequential decline in revenue of 9.7%.

The impact on quantities during the quarter is the result of some normalization of leverage volume and the third phase of the application of the new margin rules (75% of the maximum margin requirement) from 1 June. Quantities in June fell by 10% on a monthly basis.

However, the recovery in volume in July (to date) gives us confidence that the new margin rules will be gradually adjusted to the participants.

MCX management expects the increased impact on quantities in the fourth phase (100% peak margins) to be below 4%.

Click the attachment to read the complete report:

Motilal Oswal MCX Q1FY22 Update results.pdf

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