MCX Faces Major Technical Glitch, Trading Delayed in Gold & Silver Futures, MCX technical glitch

MCX technical glitch
The Multi Commodity Exchange of India (MCX) witnessed a major technical glitch on October 28, 2025, halting trading activity in key commodity contracts including gold and silver futures. The disruption created widespread confusion among traders and brokers during the morning session.

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Timeline of the Disruption

• The regular opening at 9:00 AM was initially postponed to 9:30 AM.
• Further delays shifted timings to 10:00 AM and later 10:30 AM.
• MCX finally announced that trading would resume via its Disaster Recovery (DR) site.
• Even after the switch, no confirmed restart time was announced immediately.

This marks the second major system disruption in four months, highlighting ongoing challenges in MCX’s trading infrastructure and reliability.

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Market Impact and Share Reaction

Following the technical glitch, MCX shares fell nearly 2% on NSE as investor confidence dipped. Brokers cited issues in order confirmation, settlement delays, and position visibility. Several commodity traders voiced frustration over missed opportunities amid the market uncertainty.

MCX confirmed it had activated its Business Continuity Plan and technical teams were working to restore normal operations quickly.

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Regulatory and Operational Context

Earlier this year, SEBI fined MCX ₹25 lakh for inadequate disclosures regarding its trading platform migration. The latest glitch has once again brought MCX’s operational resilience and vendor reliability under scrutiny.

Analysts expect SEBI to seek a detailed explanation and possibly call for another system audit to ensure compliance with disaster recovery standards.

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MCX’s Strategic Expansion Continues

Despite the technical issues, MCX continues to expand its product range. The exchange recently announced plans to launch Electricity Futures — a first-of-its-kind contract in India designed to help power producers and consumers hedge demand fluctuations caused by weather changes.

MCX also reported strong financial performance in Q4 FY25, with a 54% year-on-year jump in profit to ₹135 crore and a ₹30 per share dividend. UBS raised its target price for MCX shares to ₹10,000, reflecting investor optimism about the company’s long-term potential.

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Commodities Overview

• Gold Futures: Mild volatility seen as traders await full market resumption.
• Silver Futures: Recently touched a record high of ₹1,70,415/kg, up nearly 20% this month.
• Crude Oil: Expected to see high trading volumes once systems stabilize amid global price swings.

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Investor Takeaway

While recurring glitches raise short-term concerns, MCX’s financial performance and market leadership remain strong. Investors should watch how effectively the exchange addresses these operational gaps and implements technical upgrades.

With diversification into energy and electricity futures, MCX is positioning itself for sustained growth — provided reliability improves.

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Expert Opinion

“Repeated technical issues can hurt short-term trust, but MCX’s fundamentals remain strong. Quick recovery and transparent communication will be key,” said a market analyst tracking the exchange’s performance.

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Conclusion

The October 28 glitch serves as a reminder that even top exchanges must constantly update their technology infrastructure. Strengthening backup systems, vendor oversight, and communication will be crucial for MCX to maintain trader confidence in India’s growing commodities market.

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by Mirae Asset (m,Stock)