MCX extends software service pact with 63 moons for one more time

NEW DELHI: After failing to execute its project management of technology migration, the Multi Commodity Exchange of India Limited (MCX) has extended its software service support arrangement with 63 moons technologies for six months one more time.

MCX has decided to extend the support services of its existing software provider 63 moons technologies for six months from July 1 to December 31, 2023, at a consideration of Rs 250 crore.

In its filing to BSE on Thursday, 63 moons said, "We wish to inform you that we have once again agreed to the eleventh-hour request by MCX, which according to MCX is for the 'last time' for one more time. We sincerely wish that this 'last time' really happens someday, so that we deploy our excellent team of exchange technology engineering group in a mega promising opportunity in a new digital world."

Notably, this is the third time that MCX approached 63 moons to extend the software support service arrangement after the long-term agreement with MCX ended on September 30, 2022.

MCX selected the new technology service provider TCS way back in February 2021. According to the agreement with TCS, MCX had to migrate to the new technology starting from April 1, 2022. However, MCX failed to get desired results from TCS within the specified timeline.

63 moons stated: "We have been offering MCX since August 2020 an option to purchase the software source code for self-use which is in line with the practices adopted by all best exchanges in India as well as across the globe. We also offered them long-term contracts of two years in 2022. However, for the reasons best known to them, they have not opted for it. These are mission-critical technology which is of the highest excellence in functionality and performance."

The 63 moons technology exchange engine has been at the heart of MCX since 2003, working uninterruptedly for 16 hours a day all throughout.

"As the founders and well-wishers of MCX, we wish them good luck with these new experiments and hope that they will reach the right destination one day," 63 moons added.

MCX said, "We understand the importance of providing a reliable and robust platform to our users, and we are committed to continuously improving our services. We will communicate to all our stakeholders about the roll-out plan to migrate to the new Commodity Derivatives platform."

63 moons technologies mainly provides next-generation technology ventures and solutions for creating digital markets and marketplaces that enable price discovery and transaction efficiencies across industry segments.