NCDEX Deploys LSE’s MilleniumIT Trading & Surveillance System

The London Stock Exchange’s technology outfit, MilleniumIT, continues to gain traction in the exchange traded derivatives space as Indian-based NCDEX, a multi-asset commodity trading venue, selects the firm for its core IT infrastructure. The move comes at a time when Indian exchanges look to develop their trading systems as they compete on a global scale.

NCDEX reported that it will be enhancing its technology infrastructure to cater to the changing needs of Indian financial traders. Electronic trading has become part and parcel of the operating environment with competing exchanges developing their systems.

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Mack Gill, CEO of MillenniumIT, said: “We’re delighted that NCDEX selected MillenniumIT to support its impressive business momentum, with the very best in agile, low-latency, financial technology. While every market infrastructure and its requirements are unique, MillenniumIT’s technology is designed to meet those requirements in a timely, efficient way. Our ability to handle any asset class across a diverse range of financial markets companies pays tribute to this. We look forward to helping NCDEX continue its success and growth as a long-standing and trusted technology partner.”

The new solution will allow the exchange to offer a more robust offering to both buy and sell-side participants. With speed being a key component of modern financial markets, the new platform is a faster trading engine. But with advanced tools such as tick-by-tick, it is also able to trade complex orders.

Samir Shah, managing director and CEO, NCDEX, commented in a statement: “Regulated commodity markets are at the heart of India’s economy and the last decade has seen us grow into a platform with the largest pool of liquidity in agricultural commodities in the country. We are now looking for a paradigm shift in bringing greater convenience and increased efficiency in our offering of integrated marketplace comprising spot, forward and futures.

“We believe that technology will be an important enabler in our efforts to bring innovative offerings to the market and drive greater liquidity and transparency and have chosen MillenniumIT as our technology partner. We believe that with their deep understanding of the world’s financial markets and their technical prowess they will help us capitalise on the opportunities available and equip us for the future.”

NCDEX competes with MCX in the domestic commodities space. However, Indian media reported in 2014 that the BSE is looking to extend its coverage to include commodity derivatives. The move follows the exchange’s entrance into the congested currency futures and options market, which is now a core product for the oldest exchange in the country.

Indian commodity trading was impacted by the CTT levy implemented in 2013’s budget, a new tax was introduced that mirrors fees on securities. Trading volumes have suffered greatly with participants diverting their trades to OTC markets including the infamous “dhabba trading.”