Since CDSL is promoted by BSE, are MCX and BSE being merged??
Certainly this is a strange development in the back drop of NSE and MCX merger talks. Incase NSE/MCX talks materializes, then competitors are also partners(NSE will have a stake in BSE entity).
Getting market share from MCX might not be that easy??
While the article may be right about difficulty in procuring spot settlement prices, it would also intuitively mean that for MCX to protect its ground it would have to pay more convert its non-exclusive contracts to exclusive ones.
The quantum would obviously depend on the ratio of exclusive vs. non-exclusive contracts and the need for MCX to protect itself from competition.
Either way, competition is going to bring margin pressure for the incumbent with reduced pricing power on both the supplier and customer front.
It is an interesting space to observe for the next 2 years as to how changing competition dynamics and regulation bring about changes in the business model.
MCX plans currency derivatives foray…
Q1 results are not that great
MCX - Q1 FY19 (Cons)
Net Income (23.1%) 72.87 Cr vs 59.19 Cr YoY
Net Profit of (-72.1%) 7.33 Cr vs 26.30 Cr YoY
EPS (in Rs.) 1.44 vs 5.17 YoY
the net profit was down bcz of one time exceptional item, excluding that net income was flat YoY.
Exceptional item was unrealized/notional loss on bonds and shares