Potential competition from the National Stock Exchange (NSE), India’s largest bourse, hasn’t perturbed the country’s largest commodity derivatives exchange, MCX, though it is keeping a close eye on NSE’s activity in the commodity derivatives segment (CDS), Praveena Rai, managing director & CEO of MCX indicated on Monday.
MCX dominated the commodity options market in FY26 with a 99.9% share, leaving rival NSE with just 0.1%.
"We are watching the space very closely… it is a large competitor and they have made their intention felt in the market with the focus they are placing on the commodity segment," Rai said in response to an analyst’s query on evolving challenges during the company's Q4 earnings call.
Rai didn't name NSE, but the reference was unmistakable as it is the second-largest non-agri commodity contender in CDS, ahead of BSE.
Though NSE entered the CDS in 2018, it began working at increasing its market share in earnest only since late last year. Starting last November, it revised the expiry of its WTI crude oil options contracts to seven days before the underlying futures expire—a significant shift from its previous two-day window and the current schedule followed by MCX.
In March 2026, it launched a 10-gram gold contract to compete with MCX’s benchmark gold contract, followed last month by a dated Brent Platts futures contract to gain a foothold in the energy derivatives market. Brent crude is unique to NSE, as MCX's benchmark crude takes price cues from the US benchmark WTI.
‘No dent in market share’
However, NSE's recent moves in CDS are yet to make a dent in MCX’s market share, Rai said. “From whatever we see, our bullion numbers remain untouched when it comes to market share in the past two years. Some recent activity on changing expiry dates and so on in the energy segment is leading to some kind of shallow, one-day-in-a-month activity.”
Referring to the change in the expiry date, Rai said, "I think it's also quite misaligned with the global structuring on which our contracts are based. So, at this stage, I think we don't want to be reacting and making any moves which are not consistent with the way commodity products should operate.”
MCX logged a total futures notional turnover of ₹164.88 trillion and an options premium turnover of ₹16.7 trillion in FY26. The comparable figures for NSE were ₹13,286 crore and ₹10,118 crore, according to Sebi data. BSE logged zero turnover over the same period.
Rai said that the bourse was ready to offer colocation services to members at short notice, subject to the regulator approving colocation in CDS, which is presently barred. She said the RBI circular barring bank funding to proprietary traders could have a "potential impact”. She added the extension of the lending norms circular (from April to July) would allow the markets to plan their "mitigating factors”.
MCX shares surged to a record high of ₹3,219.60 on Monday after the bourse reported stellar earnings on Friday. The stock has gained 181% over the past year, compared to a 15.70% gain for the Nifty Midcap 50, of which it is a constituent.
After receiving Sebi recognition, an exchange requires "segment approval" to operate in different market asset classes. This regulatory green light can cover everything from cash equities and equity derivatives to currency, commodity, and interest rate derivative segments.