Exchange Overview MCX CONNECT / T7 Trading System Connectivity Options CTCL (Computer-to-Computer Link) UCC Registration 3-Parameter PAN Verification Client Categories (Commodity-Specific) Income Proof Requirements Batch File Format Specification NRI Restrictions Non-Individual Entity Requirements Commodity Segments & Trading Hours MCX iCOMDEX Indices MCXCCL (Clearing Corporation) Position Limits Differences from NSE/BSE Penalties & Compliance Recent Circulars (2024-2026) Key Documents to Obtain
MCX (Multi Commodity Exchange of India Ltd.) is India’s largest commodity derivatives exchange, regulated by SEBI under the Securities Contracts (Regulation) Act, 1956. It offers trading in commodity futures and options across bullion, base metals, energy, and agricultural commodities.
Attribute Details Full Name Multi Commodity Exchange of India Limited Regulator SEBI (Securities and Exchange Board of India) Clearing Corp MCXCCL (MCX Clearing Corporation Limited) Trading System MCX CONNECT (T7 platform, post-Project Udaan) Exchange Code MCX Segments Commodity Derivatives (Futures + Options) Settlement MCXCCL (wholly-owned subsidiary) Trading Hours 9:00 AM - 11:30/11:55 PM (non-agri), 9:00 AM - 5:00 PM (agri) Exchange Website https://www.mcxindia.com Member Portal https://www.mcxindia.com/members Circular Repository https://www.mcxindia.com/market-operations/circulars
MCX undertook a complete technology transformation called Project Udaan , migrating to a new trading and clearing platform:
Component Old System New System (Post-Udaan) Go-Live Trading Engine In-house T7 Trading Architecture (Deutsche Borse / Eurex technology)October 2023 Clearing & Settlement In-house TCS BaNCS for Market InfrastructureOctober 2023 Trading Terminal MCX Trader Workstation MCX Trade Station (MTS) October 2023 Member Admin Legacy portal Member Control Station (MCS) October 2023
The T7 system is the same core engine used by Deutsche Borse (Eurex / Xetra). Key characteristics:
Matching Engine : Central limit order book with price-time priorityLatency : Sub-millisecond matching (significant improvement over legacy)Capacity : Handles millions of orders per secondResilience : Active-active data center architecture with seamless failover
MTS is the exchange-provided trading terminal for members:
Browser-based and desktop application variants
Replaces the older MCX Trader Workstation (TWS)
Provides order entry, order management, market watch, trade blotter
Integrated with MCS for member administration functions
MCS is the administrative portal for trading members:
UCC registration and management (online mode)
Member configuration and user management
Risk parameter monitoring
Segment activation and deactivation
Collateral management interface
Report generation and download
T7 provides three market data interfaces:
Interface Full Name Description Use Case T7 EMDI Enhanced Market Data Interface Un-netted, tick-by-tick market data Full granularity, high-frequency strategies T7 MDI Market Data Interface Netted (aggregated) market data at regular intervals Standard market data consumption T7 EOBI Enhanced Order Book Interface v1.2 Full order-by-order book data (every order add/modify/delete) Ultra-low-latency strategies, full book reconstruction
EMDI and MDI are multicast UDP-based feeds
EOBI provides the deepest level of market transparency
All feeds are available on production and simulation environments
Mode Protocol Bandwidth Options Use Case Latency Point-to-Point Leased Line Dedicated circuit Configurable Primary production, lowest latency Lowest MPLS VPN IP-based WAN 10 / 20 / 30 / 40 Mbps Standard production connectivity Low Internet VPN IPSec over internet Variable Backup / disaster recovery / small members Higher
Primary and backup links mandatory for trading members
Colocation facility available at MCX data centers
Network latency monitoring tools provided by exchange
Separate connectivity required for trading (order routing) and market data (EMDI/MDI/EOBI)
CTCL allows trading members to connect their own software (or ISV-provided software) directly to the MCX trading engine. It is the primary mechanism for algorithmic trading, custom front-ends, and back-office integration.
Availability : Only for registered trading members of MCX.
Master Circular : MCX/CTCL/281/2024 (April 30, 2024)
MCX provides three API types for CTCL connectivity:
API Type Protocol Encoding Status Notes Non-FIX (Legacy) TCP/IP C-struct binary (proprietary) Legacy, being phased out Original MCX API format FIX v4.2 TCP/IP FIX tag-value text Available Standard FIX protocol MCX ETI (Primary)TCP/IP Flat binary encoding Primary, recommended FIX v5.0 SP2 semantics, proprietary session layer
MCX ETI is the primary and recommended API for CTCL connectivity post-Project Udaan.
Attribute Details Current Version v1.4.2 Go-Live Date January 7, 2025 Protocol TCP/IP Encoding Flat binary (proprietary, NOT standard FIX tag-value) Semantics Based on FIX v5.0 SP2 (including officially approved extension packs) Session Layer Proprietary (NOT standard FIX session layer) Encryption IV Charset encryption added in v1.4.2Failover No built-in automatic failover; member applications must implement own failover logic Session Management Exchange provides unique Session ID per member; only one active session per Session ID at any time
Key features of ETI v1.4.2 :
Asynchronous, message-based interface
Connects via Exchange Application Gateways hosting client sessions
IV Charset encryption for enhanced security (new in v1.4.2)
Supports order entry, modification, cancellation, trade confirmation, market data subscription
Binary encoding provides lower latency compared to text-based FIX
Independent Software Vendors (ISVs) wanting to provide CTCL-based solutions must go through a formal empanelment:
Step 1: Application -> Submit empanelment application to MCX
Step 2: Development -> Develop software using MCX ETI / FIX API specifications
Step 3: Testing -> Test on MCX simulation/UAT environment
Step 4: Demo -> Demonstrate functionality to MCX technology team
Step 5: Approval -> MCX reviews and grants empanelment (or requests changes)
Step 6: Go-Live -> Deploy on production with specific trading member(s)
Each ISV application must be individually empanelled
Annual renewal may be required
MCX reserves right to audit ISV software at any time
Method Interface Scale Format Notes Online Portal (MCS) Member Control Station web UI Manual, 1-by-1 Web form For individual registrations Batch Upload MCS upload module Bulk Pipe-delimited text file 2 rows per client API Post-T7 REST/ETI Automated Structured messages Available after Project Udaan migration
1. Member submits UCC record
(via MCS portal / Batch upload / API)
2. MCX validates mandatory fields
(Name, PAN, DOB, Address, Mobile, Email, Income, Category)
3. PAN 3-parameter verification
(PAN + Name + DOB against NSDL/Protean/ITD records)
+---> A (Active) -> Eligible for PTT (Permitted to Trade)
+---> I (Inactive) -> PAN verification failed, NOT eligible
+---> P (Pending) -> Verification in progress, NOT eligible
5. PTT (Permitted to Trade) flag set
(only if Status = A AND all validations pass)
6. Client can commence trading
Status Meaning Trading Impact A (Active)All verifications passed Eligible for PTT I (Inactive)PAN verification failed or client deactivated NOT eligible for PTT P (Pending)Verification in progress NOT eligible for PTT
MCX mandates that every trading member maintain an ERROR account :
Rule Details Client Code Must be exactly "ERROR" Purpose Catch-all for unmatched/erroneous trades Penalty for not maintaining Rs. 10,000 per month Penalty for fresh trades in ERROR account Rs. 10,000 per day Expected behavior Members must transfer trades out of ERROR account to correct client codes within the same trading day
Rule Details Modification allowed Yes, during trading hours Effective date July 8, 2024 Scope Transfer of trades from one client code to another (including ERROR account) Audit trail All modifications logged and reported to exchange
Rule Details Email mandatory Yes, since October 21, 2024 Applies to All new UCC registrations and modifications Distinct email Required per SEBI mandate (family exception: spouse, dependent children/parents) Validation Must be a valid, deliverable email address
New UCC registrations are typically activated on the next working day after successful PAN verification
This is slightly slower than NSE/BSE which can activate same day in some cases
MCX follows the same 3-parameter PAN verification as BSE/NSE, verifying against NSDL/Protean (Income Tax Department) records.
# Parameter Field Mandatory 1 PAN Number 10-character alphanumeric (AAAAA9999A format) Yes 2 Client Name Name as per PAN / ITD records Yes 3 DOB / DOI / DOR Date of Birth (individuals) / Date of Incorporation (companies) / Date of Registration (other entities) Yes
Code Status Meaning Trading Impact A Approved All 3 parameters match ITD records Eligible for PTT I Incorrect One or more parameters do not match NOT eligible for PTT P Pending Verification in progress NOT eligible for PTT
DOB/DOI is mandatory for ALL holders including Guardian in case of Minor Client
If Client Name or DOB differs from ITD records, must be corrected at ITD BEFORE submission to MCX
Once PAN is marked “I” (Incorrect), the record cannot be marked PTT until corrected and re-verified
PAN value AAAAA8888A is used for Central Government / State Government / Court-appointed officials
PAN-Aadhaar seeding is NOT a parameter for PTT status
SEBI mandates a 6-category classification specifically for commodity derivatives, per circular SEBI/HO/CDMRD/DNPMP/CIR/P/2019/08 :
Category Code Category Name Description Examples 1 Farmers / FPOs Agricultural producers and Farmer Producer Organizations Individual farmers, FPOs registered under Companies Act 2 Value Chain Participants (VCPs) Entities involved in physical commodity value chain Processors, millers, exporters, importers, wholesalers, retailers 3 Proprietary Traders Members trading on their own account Trading member proprietary book 4 Domestic Financial Institutional Investors Indian financial institutions Mutual funds, insurance companies, banks, pension funds 5 Foreign Participants Foreign entities (non-agri, cash-settled only) FPIs, foreign corporates (restricted to non-agri cash-settled contracts) 6 Others All other participants not covered above Retail individuals, HUFs, non-VCP corporates
In addition to the 6-category classification, MCX retains legacy trading purpose codes:
Code Purpose Description HE Hedger Client trading to hedge underlying physical commodity exposure SP Speculator Client trading for speculative / directional purposes AR Arbitrageur Client trading to exploit price differentials across markets/contracts
Categorization is commodity-wise (a client may be Category 2 for gold and Category 6 for crude oil)
Classification is self-declaration based (client declares their category at onboarding)
VCP status may require supporting documentation (business registration, import/export license)
Hedger (HE) status may require proof of underlying physical exposure for position limit exemptions
Category can be changed through UCC modification if client’s business profile changes
CRITICAL : Unlike equity markets where income proof is required only for F&O segments, MCX requires income proof for ALL commodity trading. This is mandatory regardless of the commodity segment or trading purpose.
Requirement Details Applicability ALL clients trading on MCX (not just F&O as in equity)Frequency At onboarding; periodic review as per member’s risk policy Verification Member must verify and retain proof on record
# Document Validity Notes 1 Income Tax Return (ITR) Latest financial year Most preferred; verifiable via income proof verification APIs 2 Annual Accounts Latest financial year For businesses / corporates; audited preferred 3 Salary Slip Last 3 months For salaried individuals 4 Form 16 Latest financial year TDS certificate from employer 5 Net Worth Certificate From practicing CA, latest year For HNIs and non-individual entities 6 Bank Statement Last 6 months Showing regular income credits
Code Income Range Description 1 Below Rs. 1,00,000 Below 1 Lakh per annum 2 Rs. 1,00,000 - Rs. 5,00,000 1 to 5 Lakhs per annum 3 Rs. 5,00,000 - Rs. 10,00,000 5 to 10 Lakhs per annum 4 Rs. 10,00,000 - Rs. 25,00,000 10 to 25 Lakhs per annum 5 Above Rs. 25,00,000 Above 25 Lakhs per annum
Attribute Details Delimiter Pipe (` Rows per client 2 rows (same structure as BSE)Row 1 General client information (applicable to ALL client types) Row 2 Director / Partner details (applicable ONLY to Corporate / Partnership / Body Corporate) Encoding UTF-8 / ASCII Line ending CRLF or LF Header row None (data starts from row 1)
# Field Name Type Length Mandatory Valid Values / Notes 1 Trading Member ID Alphanumeric 6 M MCX member code 2 Client Code Alphanumeric 10 M Unique per member (max 10 chars) 3 Client Name (First) Alpha 70 M As per PAN records 4 Client Name (Middle) Alpha 35 O 5 Client Name (Last) Alpha 35 M As per PAN records 6 PAN Alphanumeric 10 M AAAAA9999A format 7 Date of Birth / DOI Date 10 M DD/MM/YYYY 8 Gender Alpha 1 M M / F / T (Transgender) 9 Client Type Alpha 2 M IN (Individual), CP (Corporate), HU (HUF), PA (Partnership), TR (Trust) 10 Address Line 1 Alphanumeric 100 M Correspondence address 11 Address Line 2 Alphanumeric 100 O 12 Address Line 3 Alphanumeric 100 O 13 City Code Numeric 6 M As per MCX State-City Code Master 14 State Code Numeric 2 M As per MCX State-City Code Master 15 Pincode Numeric 6 M 16 Country Alpha 2 M IN (India), etc. 17 Mobile Number Numeric 10 M 10-digit Indian mobile 18 Email ID Alphanumeric 100 M Mandatory since Oct 21, 2024 19 Income Range Numeric 1 M 1 / 2 / 3 / 4 / 5 (see Section 8.3) 20 Trading Category Alpha 2 M HE / SP / AR 21 Commodity Category Numeric 1 M 1-6 (see Section 7.1) 22 Demat Account (DP ID) Alphanumeric 8 O CDSL DP ID or NSDL DP ID 23 Demat Account (Client ID) Alphanumeric 8 O BO account client ID 24 Bank Account Number Alphanumeric 20 M Primary bank account 25 Bank IFSC Code Alphanumeric 11 M 26 KYC Status Alpha 1 M Y (Yes) / N (No) 27 Nominee Name Alpha 100 O 28 Nominee Relationship Alpha 20 O 29 Nominee PAN Alphanumeric 10 O 30 Guardian Name Alpha 100 C Mandatory for minor clients 31 Guardian PAN Alphanumeric 10 C Mandatory for minor clients
Note : This is a representative subset. The full batch specification may contain additional fields for second/third holders, multiple nominees (up to 10 per SEBI mandate), FATCA/CRS declarations, and segment-specific flags. Refer to the official MCX UCC File Formats document for the complete field list.
Row 2 is required ONLY for non-individual entities (Corporate, Partnership, Body Corporate):
# Field Name Type Length Mandatory Notes 1 Trading Member ID Alphanumeric 6 M Same as Row 1 2 Client Code Alphanumeric 10 M Same as Row 1 3 Director/Partner Name Alpha 100 M 4 Director/Partner PAN Alphanumeric 10 M Individual PAN of director/partner 5 Director/Partner DIN Numeric 8 C Mandatory for company directors 6 Designation Alpha 50 M Director / Partner / Trustee / Karta 7 Date of Birth Date 10 M DD/MM/YYYY
Attribute Details Last updated July 30, 2024 Effective date August 5, 2024 Format Downloadable master file from MCS portal Usage State Code and City Code in batch files must match the master Updates MCX publishes updates via circular; members must use latest master
Rule Details NRIs CANNOT trade commodity derivatives on MCX Absolute restriction - no exceptions Regulatory basis SEBI commodity derivatives regulations + RBI FEMA guidelines Applies to All NRI categories (NRI, NRO, NRE, PIO, OCI) Impact on KYC system Must validate residential status at onboarding; reject NRI applications for MCX
Rule Details FPI participation Allowed, but severely restricted Commodity type Non-agricultural commodities ONLY Settlement type Cash-settled contracts ONLY (no physical delivery)Position limit 20% of client-level position limit Registration Must be SEBI-registered FPI (Category I or II) Agricultural commodities Completely banned for FPIs
IF client.residential_status == "NRI" OR "NRO" OR "NRE" OR "PIO" OR "OCI":
REJECT MCX segment activation
DISPLAY: "NRI clients are not permitted to trade commodity derivatives on MCX"
IF client.entity_type == "FPI":
ALLOW only non-agri, cash-settled contracts
SET position_limit = 0.20 * client_level_position_limit
BLOCK agricultural commodity contracts
Document Mandatory Notes Board Resolution Yes Authorizing commodity trading and naming authorized signatories Memorandum of Association (MOA) Yes Objects clause must permit commodity trading Articles of Association (AOA) Yes Certificate of Incorporation (CIN) Yes As issued by MCA (Ministry of Corporate Affairs) Director KYC Yes PAN, Aadhaar, address proof for all directors Authorized Signatory Yes Board resolution naming specific individuals authorized to operate PAN of entity Yes Corporate PAN (4th character = C for company, F for firm, etc.) GST Registration Conditional If applicable to the business Latest Audited Financials Yes For income proof requirement
Document Mandatory Notes HUF PAN Yes PAN in name of HUF (4th character = H) Karta Details Yes PAN, Aadhaar, address proof of Karta HUF Deed Yes Declaring HUF members and Karta Coparcener Details Conditional May be required for large HUFs Bank Account Yes Must be in name of HUF
Document Mandatory Notes Partnership Deed Yes Registered or unregistered All Partner PANs Yes Individual PAN of every partner Authorized Partner Yes Partnership deed clause or separate authorization letter Firm PAN Yes PAN in name of partnership firm (4th character = F) Firm Registration Certificate Conditional If registered under Indian Partnership Act
Document Mandatory Notes Trust Deed Yes Registered trust deed Trustee Details Yes PAN, Aadhaar, address proof of all trustees Resolution Yes Trust resolution authorizing commodity trading Trust PAN Yes PAN in name of trust (4th character = T) Registration Certificate Yes Under Indian Trusts Act or relevant state legislation
Status Details NOT PERMITTED NRIs are completely prohibited from trading on MCX. See Section 10.
Contract Lot Size Trading Hours Settlement Gold (1 kg) 1 kg 9:00 AM - 11:30 PM Physical delivery Gold (100 g) 100 grams 9:00 AM - 11:30 PM Physical delivery Gold (8 g) 8 grams 9:00 AM - 11:30 PM Physical delivery Gold Mini 100 grams 9:00 AM - 11:30 PM Physical delivery Gold Petal 1 gram 9:00 AM - 11:30 PM Physical / Cash Silver (30 kg) 30 kg 9:00 AM - 11:30 PM Physical delivery Silver (5 kg) 5 kg 9:00 AM - 11:30 PM Physical delivery Silver (1 kg) 1 kg 9:00 AM - 11:30 PM Physical delivery Silver Mini 5 kg 9:00 AM - 11:30 PM Physical delivery
Contract Lot Size Trading Hours Settlement Crude Oil 100 barrels 9:00 AM - 11:55 PM Cash settled (linked to NYMEX WTI) Natural Gas 1,250 MMBtu 9:00 AM - 11:55 PM Cash settled (linked to Henry Hub)
Contract Lot Size Trading Hours Settlement Copper 2,500 kg 9:00 AM - 11:30 PM Physical delivery Zinc 5,000 kg 9:00 AM - 11:30 PM Physical delivery Aluminium 5,000 kg 9:00 AM - 11:30 PM Physical delivery Lead 5,000 kg 9:00 AM - 11:30 PM Physical delivery Nickel 1,500 kg 9:00 AM - 11:30 PM Physical delivery
Contract Lot Size Trading Hours Settlement Notes Cotton 25 bales 9:00 AM - 5:00 PM Physical delivery Restricted hours Mentha Oil 360 kg 9:00 AM - 5:00 PM Physical delivery Restricted hours
Segment Trading Session Pre-Open Notes Non-Agricultural (Bullion, Energy, Base Metals)9:00 AM - 11:30 PM / 11:55 PM 8:45 AM - 9:00 AM Extended hours for international price alignment Agricultural 9:00 AM - 5:00 PM 8:45 AM - 9:00 AM Restricted hours per SEBI directive
Non-agri closing time varies: 11:30 PM for most, 11:55 PM for crude oil and natural gas
Trading hours may change during daylight saving transitions in US/Europe
Saturday, Sunday, and exchange-declared holidays are non-trading days
MCX publishes commodity indices under the iCOMDEX brand:
Index Composition Base Date Base Value iCOMDEX Composite Weighted basket of all actively traded MCX commodities Apr 1, 2005 1,000 iCOMDEX Bullion Gold and Silver futures Apr 1, 2005 1,000 iCOMDEX Base Metals Copper, Zinc, Aluminium, Lead, Nickel Apr 1, 2005 1,000 iCOMDEX Gold Gold futures only - - iCOMDEX Copper Copper futures only - - iCOMDEX Crude Oil Crude Oil futures only - -
MCX offers index futures and options on select iCOMDEX indices
No separate UCC registration is needed for index derivatives; the same MCX UCC covers index tradingPosition limits for index derivatives are separate from underlying commodity limits
Attribute Details Full Name MCX Clearing Corporation Limited Relationship Wholly-owned subsidiary of MCX Recognition Recognized by SEBI as a clearing corporation Role Central counterparty (CCP) for all MCX trades System TCS BaNCS for Market Infrastructure (post-Project Udaan)
Type Code Role Trading Member (TM) TM Can trade on own account and on behalf of clients; clears through a CM Trading-cum-Clearing Member (TCM) TCM Can trade AND clear/settle on own account and for clients Professional Clearing Member (PCM) PCM Only clears and settles trades on behalf of TMs; does not trade
MCXCCL uses a multi-layered SPAN-based margining system:
Margin Component Description Typical Rate SPAN Margin Standard Portfolio Analysis of Risk; computed using SPAN algorithm Varies by commodity volatility Extreme Loss Margin (ELM) Additional margin for tail risk 1.25% for futures , 1% for options Additional Margin Exchange-imposed during high volatility or special situations Variable, announced via circular Concentration Margin For large positions exceeding threshold % of open interest Progressive, based on position size Delivery Period Margin Enhanced margin during tender/delivery period Significantly higher (up to 25-50% of contract value)
Rule Details Client collateral segregation Mandatory at UCC level Acceptable collateral Cash, bank guarantees, fixed deposits, approved securities, warehouse receipts Cash component Minimum 50% of total margin in cash or cash-equivalent Haircuts Applied to non-cash collateral based on asset type and liquidity Collateral reporting Daily reporting to MCXCCL with client-level breakup
Level Description Set By Client Level Maximum position a single client can hold in a commodity SEBI / MCX circular Member Level Maximum position a trading member (including all clients) can hold SEBI / MCX circular Market-Wide Position Limit (MWPL) Maximum open interest allowed across the entire market for a contract SEBI / MCX circular Near Month Limit Separate limit for the near-month (expiring) contract Typically tighter than all-month All Month Combined Combined position across all contract months
Provision Details Hedger Exemption Bona fide hedgers (Category 1, 2) may apply for position limit exemption above client level FPI Limit 20% of client-level position limit (severely restricted)Aggregation Positions across all contract months are aggregated for limit computation Reporting Large position reporting (above threshold) mandatory to exchange
Exchange may impose square-off of excess positions
Financial penalties as per MCX penalty structure
Repeated breaches may result in trading restriction or membership action
Parameter MCX NSE BSE Segment Commodity derivatives ONLY Multi-segment (Equity, F&O, Currency, Commodity) Multi-segment (Equity, F&O, Currency, Commodity, Debt) Trading System MCX CONNECT (T7) NEAT / Colocation BOLT Plus (T7-based ETI) Income Proof ALWAYS mandatory (all commodity trading)Only for F&O / Commodity segments Only for F&O / Commodity segments NRI Trading Completely banned Allowed (Equity, limited F&O) Allowed (Equity, limited F&O) Trading Hours 9:00 AM - 11:30/11:55 PM (non-agri) 9:15 AM - 3:30 PM (Equity), extended for commodity 9:15 AM - 3:30 PM (Equity), extended for commodity Physical Delivery Norm (most contracts are delivery-based)Limited (mostly cash-settled) Limited (mostly cash-settled) Client Classification 6-category commodity classification + HE/SP/AR codesStandard (Individual, Corporate, HUF, etc.) Standard (Individual, Corporate, HUF, etc.) UCC Activation Next working day (slightly slower)Same day possible Same day possible Batch File Format Pipe-delimited, 2 rows/client Pipe-delimited, single row Pipe-delimited, 2 rows/client Batch Upload Limit Similar to BSE Max 10,000 records/file Max 30,000 records/file API Protocol MCX ETI (binary FIX 5.0 SP2) FIX / proprietary ETI (binary FIX 5.0 SP2) / SOAP (UCC) Error Account Mandatory (ERROR), Rs. 10K/month penalty Mandatory Mandatory Clearing Corp MCXCCL (wholly-owned subsidiary) NSE Clearing Ltd (NCL) Indian Clearing Corp Ltd (ICCL) Delivery Infrastructure Exchange-accredited warehouses, vaults, assaying centers N/A for equity; limited for commodity N/A for equity; limited for commodity
Separate income proof workflow : MCX requires income proof for ALL clients, not just F&O. The KYC system must enforce this when MCX segment is selected.NRI blocking : The system must prevent NRI clients from activating MCX segment.Commodity category capture : Additional field (1-6) required only for MCX, not for NSE/BSE equity.Trading purpose capture : HE/SP/AR code required only for MCX.Extended hours support : Back-office and risk systems must support MCX’s extended trading hours (up to 11:55 PM).Physical delivery management : Delivery period margin hikes, warehouse receipt management, and delivery obligations are unique to MCX.
Violation Penalty Reference Trading without valid UCC 1% of trade value MCX penalty circular Not maintaining ERROR account Rs. 10,000 per month MCX UCC circular Fresh trade booked in ERROR account Rs. 10,000 per day MCX UCC circular Client code modification after cut-off As per exchange penalty grid MCX member circular Position limit breach Square-off + financial penalty MCXCCL risk circular Margin shortfall Interest on shortfall amount + potential square-off MCXCCL margin circular Non-reporting of large positions Exchange-determined penalty MCX surveillance circular KYC non-compliance Exchange action (warning, penalty, suspension) MCX compliance circular
Obligation Frequency Details Client margin reporting Daily Client-level margin and collateral breakup to MCXCCL Large position reporting Daily When client position exceeds threshold UCC data reconciliation Monthly Reconcile UCC records with exchange KYC periodic review Annual Review and update client KYC information Income proof renewal Annual / Biennial Re-verify income declarations FATCA/CRS reporting Annual Report to KRA as per CBDT timelines Audit trail retention 5 years minimum All trade, order, and client modification records
Date Circular No. Subject Impact Apr 30, 2024 MCX/CTCL/281/2024 CTCL Master Circular Consolidated CTCL rules, ISV empanelment process Jul 8, 2024 - Client Code Modification during trading hours Allowed client code modification during live trading session Jul 30, 2024 - State-City Code Master update New master effective Aug 5, 2024; batch files must use updated codes Oct 21, 2024 - Email ID mandatory for UCC Email field made mandatory for all new registrations and modifications Dec 2024 - Distinct mobile/email per client Per SEBI mandate; family exception for spouse, dependent children/parents
Date Circular No. Subject Impact Jan 7, 2025 - MCX ETI v1.4.2 go-live New CTCL API version with IV Charset encryption Jan 2025 - Nominee enhancement (up to 10) Per SEBI mandate effective Jan 2025; UCC format updated 2025 (various) MCX/TRD/208/2025 MCX Master Circular - Market Operations Consolidated trading rules, UCC procedures, settlement norms Jun 2025 - SEBI Stock Brokers Master Circular alignment Updated procedures per SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/90
Date Circular No. Subject Impact Jan 2026 - SEBI Stock Brokers Regulations 2026 alignment Updated member compliance norms per new SEBI regulations (notified Jan 7, 2026)
The following documents should be obtained from MCX (member portal or relationship manager) for implementation:
# Document Version / Reference Purpose Source 1 MCX UCC File Formats v1.0 Latest version Complete batch file field specification (all fields, validation rules, error codes) MCX Member Portal / Relationship Manager 2 MCX ETI API v1.4.2 v1.4.2 (Jan 7, 2025) Primary CTCL API specification for trading and UCC integration MCX Technology Team 3 MCX FIX API v1.0 Latest version Alternative CTCL API specification (FIX 4.2 text protocol) MCX Technology Team 4 MCX Master Circular - Market Operations MCX/TRD/208/2025 Consolidated trading rules, UCC procedures, settlement norms, trading hours MCX Circular Repository 5 MCXCCL Consolidated Master Circular Latest version Clearing, settlement, margining, collateral, risk management norms MCXCCL / MCX Member Portal 6 MCX State-City Code Master Jul 30, 2024 (effective Aug 5, 2024) State and city codes for batch file validation MCX Member Portal 7 MCX CTCL Master Circular MCX/CTCL/281/2024 (Apr 30, 2024) CTCL rules, ISV empanelment, API connectivity norms MCX Circular Repository 8 MCX ETI Simulation Environment Guide Latest version Test environment setup, connectivity, test scenarios MCX Technology Team 9 MCX T7 Market Data Interface Specifications EMDI / MDI / EOBI v1.2 Market data feed specifications for data consumption MCX Technology Team 10 SEBI Commodity Client Classification Circular SEBI/HO/CDMRD/DNPMP/CIR/P/2019/08 6-category client classification rules for commodity derivatives SEBI Website
[ ] Obtain MCX trading membership or confirm existing membership
[ ] Get MCX member code and MCS portal credentials
[ ] Obtain UCC batch file format specification from MCX
[ ] Obtain State-City Code Master (latest version)
[ ] Set up CTCL connectivity (if API-based integration planned)
[ ] Complete ISV empanelment (if using custom software)
UCC Registration Implementation:
[ ] Build NRI validation gate (block MCX for NRI clients)
[ ] Implement income proof mandatory collection (ALL MCX clients)
[ ] Add commodity category field (1-6) to onboarding form
[ ] Add trading purpose field (HE/SP/AR) to onboarding form
[ ] Implement PAN 3-parameter verification flow
[ ] Build batch file generator (pipe-delimited, 2 rows/client)
[ ] Implement ERROR account setup for member
[ ] Build UCC status tracking (A/I/P -> PTT flow)
[ ] Implement email ID mandatory validation
[ ] Test batch file generation with sample data
[ ] Validate against State-City Code Master
[ ] Test PAN verification flow (A/I/P scenarios)
[ ] Test NRI rejection flow
[ ] Test non-individual entity flows (Corporate, HUF, Partnership, Trust)
[ ] Test on MCX simulation environment (if CTCL)
[ ] Reconcile UCC records post-upload
[ ] Submit initial batch of UCCs
[ ] Verify PTT status for all active clients
[ ] Confirm ERROR account is active
[ ] Set up daily margin and position reporting
[ ] Configure extended trading hours in back-office systems
Error Code Description Resolution PAN_MISMATCH PAN details do not match ITD records Verify PAN, name, DOB against IT department records INVALID_STATE_CITY State or city code not in master Use latest State-City Code Master (Aug 5, 2024+) DUPLICATE_UCC Client code already exists for this member Use unique client code or modify existing UCC MISSING_INCOME Income range not provided Income proof is mandatory for ALL MCX clients INVALID_CATEGORY Commodity category code not in 1-6 range Use valid SEBI 6-category code NRI_BLOCKED NRI clients not permitted on MCX Cannot activate MCX segment for NRI clients MISSING_EMAIL Email ID not provided Email mandatory since Oct 21, 2024 INVALID_FORMAT Batch file format error Verify pipe-delimited format, 2 rows per client, field lengths
This document is based on publicly available MCX circulars, SEBI regulations, and industry research as of February 2026. Implementation teams should obtain the latest specifications directly from MCX for production integration.