MCX Trading Halted for Over Four Hours; Exchange Probes Technical Glitch on Priority

MCX Launches Investigation After Technical Glitch Halts Trading for Over Four Hours; Operations Restored

Mumbai, October 28, 2025: The Multi Commodity Exchange of India (MCX), the country’s largest commodity derivatives bourse, faced an unprecedented technical disruption on Tuesday that halted trading for more than four hours, marking the longest-ever trading outage in the exchange’s history.

The disruption, which began around 9:30 a.m., delayed the commencement of trading sessions and left market participants anxious until operations resumed in the afternoon. MCX confirmed that it had shifted its operations to a Disaster Recovery (DR) site, with trading restarting at 1:25 p.m.

“Due to a technical issue at the Exchange, the commencement of trading on Tuesday, October 28, 2025, was delayed. Operations were shifted to the Disaster Recovery site, and trading started at 1.25 p.m.,” MCX said in a regulatory filing.

MCX Confirms Investigation and Corrective Measures

In an official statement, MCX said an investigation has been initiated on priority to identify the root cause of the issue and implement corrective measures to prevent recurrence.

“We are committed to identifying the cause and implementing necessary corrective measures. Updates on our findings and actions taken will be shared in due course. We sincerely regret the inconvenience caused to market participants and appreciate their patience and understanding,” the exchange said.

The exchange assured that all trading systems are now functioning normally and operations have stabilized following the restoration from the DR site.

This marks the second major technical issue faced by MCX this year, raising concerns over the reliability of its trading infrastructure at a time when the exchange is expanding its product portfolio and attracting higher volumes across asset classes.

Also Read : US Stocks Deep in AI Bubble Territory,’ Warns Richard Harris as Markets Hit Record Highs

MCX Shares Edge Lower Post-Glitch

In immediate market reaction, MCX shares slipped about 1% in afternoon trade, quoted at ₹9,213 apiece at 1:30 p.m. on the BSE. Investors appeared cautious following the outage, although analysts expect sentiment to recover once the exchange provides clarity on the cause of the disruption.

MCX, which dominates India’s commodity derivatives market, is a key trading venue for gold, silver, crude oil, and base metal futures contracts.

MCX BULLDEX Options Launched a Day Before the Outage

Interestingly, the outage came just a day after MCX announced the launch of monthly options contracts on its MCX iCOMDEX Bullion Index, known as MCX BULLDEX.

The new product aims to enhance risk management tools available to traders and investors by offering exposure to a diversified basket of gold and silver futures within a single index framework.

“MCX BULLDEX, covering both Gold and Silver, offers balanced exposure in the bullion segment to market participants — both investors and institutions alike — in a convenient and cost-effective manner,” the exchange said in a statement.

The exchange emphasized that this innovation aligns with its broader commitment to deepening India’s commodity markets through product innovation, transparency, and investor-friendly offerings.

Gold and Silver Under Pressure Ahead of MCX Outage

Ahead of Tuesday’s technical delay, precious metals were already witnessing volatility. On October 27, December gold and silver futures on MCX closed sharply lower, mirroring global trends.

The weakness stemmed from easing US-China trade tensions, which reduced the demand for safe-haven assets like gold. Spot gold slipped below the crucial $4,000 per ounce mark after reports suggested progress toward a bilateral trade deal between Washington and Beijing.

However, on October 28 morning, global gold prices recovered slightly, supported by a weaker US dollar and rising expectations of further Federal Reserve rate cuts, which tend to support non-yielding assets like gold.

Experts Call for Infrastructure Resilience

Market analysts have underscored the importance of robust technological systems for exchanges like MCX, which handle billions worth of trades daily.

“Given the scale of trading activity and the role MCX plays in India’s commodities ecosystem, even minor technical glitches can disrupt hedging strategies and impact price discovery,” said a senior commodities analyst at a Mumbai-based brokerage.

Experts believe the exchange’s swift shift to its Disaster Recovery system helped mitigate larger damage. However, repeated issues could invite scrutiny from regulators such as SEBI, particularly as exchanges are mandated to maintain real-time backup and failover capabilities to ensure uninterrupted trading.

MCX’s Commitment to Market Stability

MCX reiterated its focus on system stability, investor confidence, and technological reliability following the incident. The exchange said it will continue to strengthen its risk management and technology frameworks to support seamless operations in India’s growing commodity derivatives space.

Despite the brief setback, industry observers note that MCX remains a critical institution in India’s financial infrastructure, providing essential platforms for price discovery, hedging, and liquidity in commodities markets.

With the BULLDEX options launch signaling product innovation and expansion, MCX aims to reaffirm its leadership in commodity derivatives trading while restoring confidence in its technical resilience.

Market Outlook: Focus on Transparency and Trust

The MCX trading halt serves as a reminder of the challenges exchanges face amid increasing digitization and trading automation. As the exchange works on identifying the technical fault, market participants expect greater transparency in post-incident reporting and preventive technology upgrades.

For traders and investors, the incident underscores the importance of diversification and preparedness for operational risks beyond market volatility.

Conclusion:

While Tuesday’s outage disrupted trading activity temporarily, MCX’s swift response and restoration of services helped avert larger market instability. The exchange’s commitment to a transparent investigation and corrective measures will be crucial in rebuilding investor trust as it continues to expand its product offerings and enhance India’s commodities trading ecosystem.

• Nifty 50
• Bank Nifty
• Sensex